The hottest LED lighting has a long way to go

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There is a long way to go for LED lighting to reduce production capacity.

after a period of silence, the LED lighting sector has recently "resurfaced", and the share prices of Companies in the LED lighting sector, including rectangular lighting and Qinshang optoelectronics, are quite active. After a period of silence, the LED lighting sector has seen a resurgence recently, and the share prices of Companies in the LED lighting sector, including rectangular lighting and Qinshang optoelectronics, are quite active

with the support of policies, the LED lighting market will have a large space in 2013, and relevant listed companies are expected to benefit. From the perspective of valuation, PE of LED lighting companies is indeed relatively high, but peg is in a relatively reasonable position. Zhoujianbing, an analyst at Guojin securities wealth management center, said

with the support of policies, the growth of industry demand can be expected

recently, the LED lighting industry seems to be surging with warmth. With the complete prohibition of incandescent lamps in the European Union, the application of LED lighting has entered a stage of qualitative change. With the support of domestic policies, LED lighting is also expected to accelerate its penetration

in addition, six ministries and commissions, including the national development and Reform Commission and the Ministry of science and technology, recently jointly issued the "semiconductor lighting energy conservation industry plan", which further clarified the development goals, main tasks and supporting measures of China's LED industry during the 12th Five Year Plan period, and made it clear that it is necessary to promote the average annual growth of energy-saving output value of LED lighting by about 30%, reaching 450 billion yuan in 2015, of which the application products of LED industry reached 180 billion yuan

data show that the output value of LED general lighting in China in 2012 was close to 42billion yuan, an increase of 40%; The total annual output is 310million, with a substantial increase in the number; The manufacturing capacity and export volume of LED lighting products rank first in the world

the development prospect of the industry depends. The main focus of the LED lighting field is that it will form large-scale enterprises with the support of policies. Zhou Jianbing said

in fact, the global LED market for some general machinery and equipment such as fluid and solid transportation, separation, crushing, grinding and drying has gradually warmed up from last October. The demand rose sharply in the first quarter of this year, especially in emerging markets. At present, Russia, Thailand, Vietnam, India, Africa and other countries and regions have seen an increase in investment in infrastructure construction, and the demand for LED lighting in emerging markets will continue to rise in 2013

take Vietnam as an example, Vietnam will achieve 38% urbanization level by 2015, which will be a great opportunity for China's LED lighting exports. In addition, countries including India have spared no effort in promoting the conversion of traditional lighting systems to LED lighting, and they are also expected to import a large number of LED lighting products in China

from the perspective of peripheral markets, first, the global economy began to recover gradually, especially the expectation of economic recovery in the United States increased; Second, the current energy supply is tightening, and the global demand for energy conservation is increasing; Third, China is accelerating the pace of urbanization, and the requirements for product energy consumption will be further improved in the future. Therefore, whether from the current market performance or future development, the LED lighting industry has a broad space, and the probability of market recovery is large. He Zaihua, senior researcher of CIC consultants, said

he believes that benefiting from the global economic recovery and the national requirements for energy conservation and emission reduction, 2. What are the precautions for the operation of the hydraulic universal testing machine? The recent performance of LED lighting enterprises has improved. In addition, the second quarter is the traditional peak sales season for commercial lighting fixtures, so it is expected that the performance of LED lighting enterprises will improve

Founder Securities believes that led lighting application products are the link that most directly benefits from the pull of policies. In the next few years, although energy-saving lamps will still occupy the largest category of lamps in terms of market share, LED will further reduce the replacement cost difference with energy-saving lamps under the condition that the cost and price continue to decline

in fact, in order to strengthen the government procurement of energy-saving products, the Ministry of Finance and the national development and Reform Commission recently adjusted the published government procurement list of energy-saving products, and LED lighting products were added to the adjusted procurement list for the first time. According to statistics, LED lighting products included in the purchase list include LED road/tunnel lighting products, led downlights, and reflective self rectifying LED lamps. The number of products selected is 251, 177, and 90 respectively, involving 84 companies, including nearly 20 listed companies

there is a long way to go to reduce production capacity, and leading manufacturers can pay attention to

nevertheless, there has always been overcapacity in the LED lighting field. According to the solution, many analysts believe that the structural overcapacity situation of the LED industry will continue in 2013, and relevant enterprises will continue to digest inventory through price reduction and obtain market share

in fact, the recent performance of relevant listed companies is mediocre. Taking rectangular lighting as an example, the company expects the net profit in the first quarter of this year to be 10.35 million yuan to 12.6 million yuan, a decrease of 28.87% to 13.4%. The company said that at present, it is in the expansion period, and the cost investment is high, so the sales expenses have increased significantly, and the company's profits have decreased

at present, the overcapacity of China's LED lighting industry has improved, but the problem is still serious. The lack of unified industry standards has led to a low threshold for industry entry, while high government subsidies and preferential tax policies have attracted a large number of funds into the LED lighting industry, and even many enterprises do not have relevant technology. As a result, a large number of small and medium-sized enterprises are concentrated in the field of low value-added production, the low-end overcapacity is serious, and the core technology is lack of competitiveness. He Zaihua said

he believes that at present, China's LED lighting enterprises still face many problems, not only in the disorderly competition in the industry, but also the lack of core competitiveness and the intervention of international giants will have an impact on their operating conditions

then, for investors, how should they view the investment opportunities and valuation of LED lighting sector

at present, the overall PE of the market is only 11 or 12 times, while the overall valuation of the LED lighting sector is about 30 times. Assuming its future growth rate of 35%, peg is still lower than 1. Investors can choose those companies with integration ability as the target, and we are more optimistic about companies with upstream and downstream integration ability of the industrial chain. In addition, the risk of this sector comes from policy changes on the one hand, and overcapacity on the other hand. If the situation of oversupply does not change, it will still affect the company's performance. Zhou Jianbing said

he believes that if there is a breakthrough technology to reduce the cost of LED lighting, the space will be larger. The problem now is still that the price of LED lighting products is too high, affecting the market demand

Founder Securities believes that the LED industry will gradually recover under the promotion of policies this year. From the analysis of all links of the industrial chain, it can be seen that the midstream packaging industry is affected by price repression and downstream transmission factors of upstream overcapacity, and there is still great competitive pressure on the whole

the brokerage believes that the upstream investment progress of the industry has slowed down, and the further digestion of production capacity has improved the fundamentals. Leading manufacturers with scale advantages will further occupy a favorable position in the market. The LED lighting application field directly benefits from the policy driven demand, and lamp manufacturers with brand and channel advantages enjoy advantages in the competition. San'an Optoelectronics in the upstream of LED lighting industry chain and sunshine lighting in the downstream deserve attention

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