The strong penetration of LED in the field of lighting has become inevitable


LED screen network on June 25, the LED sector rose 1.10 against the market, ranking the forefront of the Shanghai and Shenzhen stocks. Among them, Nanda Optoelectronics, Goer Acoustics, Feile Audio, Silan Micro, Qinshang Optoelectronics and other LED stocks rose significantly.

In this regard, analysts said that in the Guangzhou International Lighting Exhibition held recently, it can be seen that about 80 exhibits are related to LEDs, and the strong penetration of LEDs in the lighting field is an inevitable trend.

From a fundamental point of view, LED demand rebounded rapidly in 2013, and Taiwan's LED industry packaging started ahead of the chip, showing strong demand. LED lighting orders confirmed that corporate profitability gradually stabilized and expanded, and the increase in lighting demand is the main driving force for this round of industry recovery. Market participants expect that the compound growth rate of LED lighting demand will reach 59 in the next three years.

The main reason for the sharp increase in the industry's prosperity is the decline in cost brought about by technological advancement. Recently, the LED industry has improved in popularity. One of the major factors is that the medium-power LED products have partially concessions over their service life (the life span has dropped from 30,000 hours to 10,000 hours, but still Higher than energy-saving lamps), its price has dropped rapidly, consumers have chosen LED products have a very cost-effective advantage. It can be seen that the overall improvement of the LED industry boom is the result of the joint advancement of technology, market and manufacturers.

In its research report, Essence Securities clearly stated that the LED industry is a blue ocean market with huge space. From the perspective of the industry chain, we are optimistic about upstream chip companies and downstream lighting application companies. As the current LED lighting demand has just started, the performance of upstream chip companies is relatively flexible; in the lighting field, the more customers and channel resources, the higher the profit margin, and the greater the investment opportunities in the future.

The LED industry is still in its infancy. The current stock price drivers of relevant stocks come from market demand expansion expectations and valuation repairs. The future stock price driving force will come from the gradual confirmation of performance, focusing on upstream Sanan Optoelectronics and Dehao Runda. Sunlight lighting, which is dominated by channels, is recommended to focus on Ruifeng Optoelectronics and Jufei Optoelectronics, which have made breakthroughs in medium and large-size backlights.

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