We (LED industry) feel that the industry has a big opportunity, and its replacement of traditional lighting is inevitable. Only this market will have a market scale of trillions. On August 22, the Shanghai Securities News. At the industry frontier (Shenzhen) Roundtable Forum hosted by China Securities Network, the short words of Ruifeng Optoelectronics Secretary-General Ke Hanhua, while revealing the voices of many industry people, may also reveal the incentives for the industry's investment M&A activity. According to statistics from CSAResearch, from January to June 2014, China's LED lighting companies completed 11 M&A transactions with a total transaction amount of about 3.5 billion yuan, and the average fund size per case was about 300 million yuan. Senior executives of several listed companies such as Chau Ming Technology and Ruifeng Optoelectronics, as well as fund managers of Dacheng Fund, Baoying Fund and Southern Fund, agreed that the new round of mergers and acquisitions in the industry is different from the capacity expansion in previous years. Rationality and leading power are leading enterprises in the industry, and the differentiated competition situation is obvious, and the industry will enter the post-competition era. At the same time, driven by multiple factors such as policy support, upstream technology breakthroughs, price declines, and strong market demand, the LED industry has taken off indefinitely, and the next decade will be the gold development period. Investment mergers and acquisitions that did not blindly follow, the LED industry company's share price rose against the trend, 80% of LED companies reported half-year results, and the organization in the second quarter of 2.3 billion jiacang 16 LED stocks, or its catalyst. Since the beginning of this year, LED industry investment, expansion, and mergers and acquisitions have been extremely active. Wanrun Technology acquired Sunshine Optoelectronics, Feile Audio acquired Beijing Shenan, Foshan Lighting acquired Lebao Optoelectronics, Yuanfang Optoelectronics acquired advanced optoelectronics, and Zhongjing Electronics acquired Fangzheng's mergers and acquisitions involving LED industry, which was completed in the first half of this year. M&A transactions, with a total amount of 3.5 billion yuan. At the same time, Sanan Optoelectronics invested 10 billion to be the world's number one, Huacan Optoelectronics invested 1.18 billion to expand the epitaxial wafer production capacity, Guoxing Optoelectronics expects to increase the packaging capacity by 40 in the middle of this year, Qinshang Optoelectronics plans to invest 500 million to expand the main business LED The news of enterprise expansion is also endless. This can not help but recall the LED industry from 2010 to 2011, when the company expanded frantically, but ultimately led to overcapacity in the next few years, the industry is sluggish. Will this repeat the same mistake this time? Judging from our recent acquisition of the company, the company is very rational in terms of mergers and acquisitions. In the past few years, the company has established itself in the past few years, namely, packaging, and gradually extended to the downstream using this advantage. Second, the expansion of the downstream sector can further promote the digestion of the company's packaging capacity, so the current and subsequent mergers and acquisitions are mainly concentrated in Downstream and downstream will also be the profit growth points of future companies. Wanrun Technology Finance Director Qing Beijun refuted the market's doubts with actual cases and detailed strategies. There are not many rational mergers and acquisitions. First, the company's main business will not give up, but we insist that the company's mergers and acquisitions will increase our highlights. Mao Shuo Power Dong Jun Fang Ji Pen said. We are now looking for the target mergers and acquisitions. You bought them. Have you digested them? This is very worthy of our consideration. Liu Ming, director of Chau Ming Technology, clearly pointed out that Chau Ming Technology will not easily carry out mergers and acquisitions, and if mergers and acquisitions, will repeatedly think before the merger, what kind of value the company can bring to the other party, it is recommended that the company should Be strong and consider bigger. For example, Liu Wei has acquired a company, Redio, mainly because the company has been doing a deep job in creative display and can strengthen the company's display business. The take-off in the integration to look back at the development of the LED industry, from the 1990s officially put into production, more than 10 years, the industry homogenization competition, lack of innovation, etc. has been taking advantage of the industry's take-off. It is precisely because of homogenization competition and cruel competition that if everyone wants to survive, the scale is not large, and it can only rely on integration, and industry consolidation may further accelerate. Before the new wave of integration, Alto Electronics’ director Dong Sihua believes that the industry’s roots have not been eliminated, and this round of integration will last for 3-5 years. However, LED market demand, technology space, etc. still have a lot of room to be explored, and the future development prospects of the industry are very good. The prospects for LEDs are very broad, and both midstream packaging companies and downstream application companies can have a path. Liu Wei also agreed. However, when the industry is set up for a good proposition, when is the best time for layout? The answer is now! The participants agreed that the current time is the best time for the development of the LED industry, and it is also an opportunity for LED companies to become bigger and stronger. First of all, the policy level is at the stage of strong state support. In addition, the upstream and downstream market demand is gradually increasing after the concept of the previous years has been popularized, and the industry is taking off at the right time. According to the semi-annual report of many LED companies, after the LED lighting market resumed growth in 2013, the LED lighting market was affected by factors such as the batch implementation of the incandescent lamp elimination plan in major countries and regions such as the United States, the European Union and China, and the reduction in cost and driving terminal prices. The capacity will be significantly expanded and fully launched and will continue to grow. The next 3-4 years will be the fastest growing period for the LED lighting market. At the same time, the rapid growth of lighting applications will also drive the improvement of the supply and demand relationship of lighting application package components. Authorities expect that the output value of China's LED lighting industry will increase by 58 to reach 180 billion yuan in 2014. However, during the period of industry integration and development, the gap between enterprises has become more apparent. At this point, how do investors choose the best target among the more than 50 LED companies in the A-share market? In this regard, Liu Wei revealed that when she joined Zhouming Technology two years ago, she also entered with the idea of ​​investors. Two years later, reflecting on her investment ideas, she still believes that the choice of LED companies should follow the following points: First, look at technology, the technical reserves of this company, there are, if any, for the current Red Sea bloody battle Or prepare for the next peak; second, see who is the industry benchmark, if it is a small Chinese company, then forget it; third, see if this company has long-term plans and ambitions rooted in this industry, is it There are ten or even centennial plans; fourth, whether the team is full of vitality; fifth, whether the corporate governance structure and its internal control system can support its development for three to five years. In Yang Sihua's view, enterprise value is to create value. See if the market positioning of this enterprise is accurate, how the gross profit margin and cash flow situation are. Just choose the enterprise that creates value, pay attention to the real value, and finally get the market. Recognition.
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