Domestic lighting market expansion LED industry opportunities presented

On the evening of November 28th, the industry leader Sanan Optoelectronics announced that the account of the company's employee stock ownership plan was the Xinzhong No. 1 collection plan established by Xingzhen Securities Asset Management Co., Ltd., as of November 28, 2014, the shareholding plan. The company's stock has been purchased 50,301,600 shares, amounting to 742,083,900 yuan. Previously, the third meeting of the 8th Board of Directors and the 3rd Extraordinary General Meeting of Shareholders in 2014 reviewed and approved the proposal of Sanan Optoelectronics Co., Ltd. (600184) Co., Ltd. Employee Stock Ownership Plan and Summary, and the shareholding plan was used to purchase the company. The maximum amount of stock is 930 million yuan. Based on the optimistic outlook for the industry, Sanan Optoelectronics has become the number one crab in the implementation of employee stock ownership plans in the LED concept stocks. Sanan Optoelectronics is not a case. Market expansion Guotai Junan industry analysts believe that the current LED industry benefited from the lighting market, is ushered in the best history of history, and has entered a three-year high boom period. LEDs can be roughly divided into three areas: upstream chip, midstream package, and downstream application. According to reports, LEDs currently have three applications: lighting, backlight, and display. The display is now saturated, with an annual growth of about 10-30, TV backlight growth is not large, and LED lighting is exploding. According to the financial report released by CREE, the leading LED lighting company in the United States, the sales of LED lighting products of the company increased by 51 to 223 million US dollars in the third quarter of this year, while the sales of chip/component business decreased by 20 to 173.6 million. According to research institutions, the total output of global LED lighting will reach 25.7 billion US dollars in 2015, accounting for 31.3% of the total output of the overall lighting market. The industry expects that European production capacity will account for 23% of the global LED lighting market next year, China accounts for 21 The United States accounted for 19. As the world's largest producer, consumer and exporter of lighting products, China's domestic LED industry grew rapidly, with a market size of more than 260 billion yuan in 2013. According to a series of reports on LED lighting industry released by CSAResearch, in 2013, the overall scale of China's semiconductor lighting industry reached 257.6 billion yuan, of which LED lighting scale was close to 70 billion yuan, a year-on-year increase of 65, and the domestic market penetration rate reached 8.9. In terms of demand in the public sector such as civil and road lighting, Ding Wenwu, director of the Electronic Information Department of the Ministry of Industry and Information Technology, recently predicted that domestic LED production value will continue to maintain a high growth rate of 20 to 30 next year. Lu Wenbin, deputy director of the Department of Resource Conservation and Environmental Protection of the National Development and Reform Commission, also predicted that the target of 20 LED lighting market share in 2015 will be realized ahead of schedule. In 2011, China issued the “China Roadmap for Phased Elimination of Incandescent Lamps”. According to the national plan, the import and sale of ordinary lighting incandescent lamps of 60 watts and above will be banned from October 1, 2014; import and sale will be banned from October 1, 2016. General lighting incandescent lamps of 15 watts and above. Incandescent lamps have been eliminated, leaving market space for the development of energy-saving lamps. At the beginning of last year, the National Development and Reform Commission, the Ministry of Science and Technology and other six ministries and commissions jointly issued the "Semiconductor Lighting Energy Conservation Industry Plan", which clarified that the annual output growth of LED lighting energy-saving industry will increase by about 30, and in 2015 it will reach 450 billion yuan, of which 180 billion yuan will be used for LED lighting applications. . At the same time, the subsidy policy for energy-saving lamps released in 2008 is coming to an end this year. In the eyes of the industry, the follow-up subsidy plan is likely to be implemented on LEDs. On the export side, CSAResearch's data shows that in the first half of 2014, the export value of China's LED lighting products was about 4.35 billion US dollars, up 135 year-on-year; the export of 50 or more was mainly concentrated in the traditional mainstream markets such as the United States, the European Union and Japan, and the BRICS countries, Emerging markets such as the Middle East have grown rapidly; in the second quarter of 2014, Russia's market share of 9 and the year-on-year growth rate of 571 jumped to become China's second largest export market. According to statistics, as of November 2014, there were more than 80 related concept stocks in the domestic LED lighting industry, of which 22 companies listed through the LED industry chain related concepts, with LED chips, packaging, display, outdoor lighting, and supporting Materials and supporting equipment are the mainstays. With the expansion of the market, in the first half of 2014, the average growth rate of the LED sector revenue exceeded 30, ranking first among the 29 industry sectors in China's A-share market. On July 31, Sanan Optoelectronics released its 2014 semi-annual report. In the first half of the year, the company achieved operating income of 2.177 billion yuan, a year-on-year increase of 30.03; net profit attributable to shareholders of listed companies was 666 million yuan, an increase of 43.87 year-on-year; basic earnings per share It was 0.42 yuan, a year-on-year increase of 31.25. On the basis of the semi-annual report of the brilliant performance, the LED industry listed companies continued to improve in the third quarter. Sanan Optoelectronics' operating income for the first three quarters of 2014 was 3.478 billion yuan, up 32.16 year-on-year; net profit attributable to shareholders of listed companies was 1.05 billion yuan, up 38.02% year-on-year. Thanks to large and medium size, the smart phone industry grew rapidly, and the market share of the industry The rate increased. In the first three quarters of the company, Jufei Optoelectronics achieved a total operating income of 7.61017 million yuan, a year-on-year increase of 43.54; net profit of 131.212 million yuan, a year-on-year increase of 34.40. Similarly, LED devices and large-size backlight boosted National Star Optoelectronics 2014 In the first three quarters of 2014, the company achieved operating income of 1.14 billion yuan, a year-on-year increase of 39.1; net profit attributable to shareholders of listed companies was 100 million yuan, a year-on-year increase of 35.3; basic earnings per share was 0.23 yuan. Mergers and acquisitions trend in the process of the LED lighting industry is gradually mature, mergers and acquisitions integration is an inevitable process. A new wave of LED mergers and acquisitions has begun. In 2014, the LED lighting industry and M&A events surged. According to statistics, there are more than 100 related mergers and acquisitions cases, and the amount of mergers and acquisitions exceeds 10 billion yuan. Among them, there are more than 20 M&A cases of listed companies in the LED industry chain, and the amount of M&A exceeds 6 billion yuan. Following the acquisition of NVC by Sanhao Runda and the acquisition of Taiwan’s Yuyuan Optoelectronics in 2013, Tongfang’s 700 million yuan competed for Zheng Mingli’s controlling stake, Changfang Lighting’s over 500 million yuan to acquire Kang Mingsheng’s 60-share, and Hongli’s 180 million yuan acquisition. The mergers and acquisitions of Smect and Weiwei's shares of 122 million yuan, such as the acquisition of lighting, Lehman Optoelectronics acquisition and capital increase holding Kangsuo Exhibition, were frequently staged, and resource integration gradually began to climax. In order to quickly cut into the domestic market with huge capacity in the market, and gradually get rid of a single overseas market and enhance its ability to resist risks, Weiwei Lighting chose lighting on the product. According to public information, Weiwei Lighting acquired the lighting of well-known companies in the domestic commercial lighting field for 122.5 million yuan. Wei Wei Lighting said that in the future, Pinshang Lighting, as a wholly-owned subsidiary and main sub-brand of Weiwei Lighting, will accelerate its development after the listed company continues to invest in superior resources, and is committed to making the lighting on the product a first-class in the domestic commercial lighting field. Brand, enhance the comprehensive competitiveness of the LED business. According to reports, Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, said that with the intensification of competition in the LED lighting industry chain, enterprises are facing greater competitive pressure and survival pressure, and the LED industry has only 2-3 years of prime time. Excellent companies in the industrial chain need to change their minds. It is also a very good way to obtain funds and achieve indirect listing through mergers and acquisitions.

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