Rapid growth in the lighting market, companies began to compete at low prices?

Low-cost competition has emerged

"LED application technology has not yet fully matured, but the low-price competition among LED companies has started in advance." Xu Changchun, deputy general manager of domestic LED driver power supply manufacturer Nanjing North Huihua Optoelectronics Co., Ltd., told the "First Financial Daily" that both Is LED indoor lighting, or LED outdoor street lighting, the phenomenon of low-cost vicious competition has been very obvious, "For example, in mid-April, Frankfurt Lighting Exhibition of China Pavilion, everyone in order to grab orders, the price will kill a mess."

"Because LED lighting is a new product, customers don't understand it well. The result is that there is a quotation. 1W is reported for 20 yuan, or 45 yuan. The customer is also awkward, how to determine the cost of LED lighting in the end, how much is worth "Xu Changchun pointed out that premature low-price competition will naturally lead to cutting corners in product quality. Because, the domestic LED lighting standard can no longer lag, otherwise it will affect the development of the domestic LED industry.

In spite of this, the international process of eliminating incandescent lamps has been accelerating and the people’s awareness of energy conservation has continued to increase. With the background of strong national support, domestic LED companies have earned enough cash in the first half of this year, and listed companies with LED business stock prices It is followed by rising water.

Government subsidies to promote

However, the growth of the LED lighting market compared to the growth of the LED TV market is only pediatrics. Because, the trend that LED TV replaces CCFL backlit LCD TV in the second half of this year is already a foregone conclusion.

According to the latest DisplaySearch data, the global LED TV penetration rate has reached 18.5% in the second quarter, which is an increase of 110% compared to the first quarter; LCD panel makers have planned to adjust the market penetration of LED backlight panels in the fourth quarter of this year. To 40%, to more than 50% in the second quarter of next year.

"The price of LCD TV panels will drop sharply in the third quarter of 2010 due to oversupply and downstream inventory adjustments. However, LED backlight panel prices will be reduced faster than CCFLs," said Xie Qinyi, deputy general manager of DisplaySearch Greater China Markets. The survey results of WitsView in Taiwan also showed that the proportion of LED backlight panels in the second quarter of the mainland TV brand panel purchases reached 14.5%, which was a 2.7-fold increase from the first quarter, which was only 4.8%.

Zhang Xiaofei stated that the popularity of LED TVs has also led to the popularization of LED energy-saving concepts, which will certainly stimulate traditional lighting to further transform LED lighting. The domestic LED industry has also been developing rapidly due to the rapid growth of the LED application market. One of the main reasons is that 70% of Taiwan's LED industry's production capacity and output value have been or are being transferred to the mainland.

“In order to attract the LED industry in Taiwan and develop the local LED industry, the local governments in mainland China are all constructing LED industrial parks vigorously. At present, at least more than 100 are formed.” Zhang Xiaofei said.

It is reported that the mainland government's investment promotion, especially the MOCVD (LED chip production equipment) financial subsidy policy, has effectively promoted the entry of more mainstream LED chip companies in the Taiwan region and the United States. Because, each 8 million to 10 million yuan in financial subsidies, significantly reduced the LED chip companies equipment purchase costs.

“The number of MOCVD plants planned to be increased by the mainland in the next few years will exceed 1,200, and the number of MOCVD projects planned for this year will exceed 300. Xiamen Sanan and BDO Runda have already ordered more than 100 MOCVD units.” Zhang Xiaofei pointed out that due to the mainland LED chip companies have increased too much, and most of them have plans to introduce MOCVD. The shortage of related technology R&D talent for the production of LED epitaxial wafers in mainland China will become a very big problem.

"The victory of the talent competition is an important factor for the mainland LED chip companies to win in the future market." Zhang Xiaofei said.

Rapid growth in lighting market

The BDO Runda (002005.SZ), which claims to fully enter the LED industry chain, closed at 19.75 yuan yesterday, an increase of more than eight times compared with the lowest price of 2.15 yuan in October last year. In the first half of the year, BDO Runda’s revenue reached 1.074 billion yuan, a year-on-year increase of 55.42%, and a net profit of 20.5 million yuan, a year-on-year increase of 915.95%. Among them, LED application product income of 138 million yuan, an increase of 1411%, accounting for BDO Runda's total revenue share of nearly 13%, also marks the BDO Runda transition from small appliances industry LED industry initial success.

It is not only BDO Runda, but also NVC Lighting (02222.HK), Zhejiang Sunshine (600261.SH) and Zhen Mingli (01868.HK) that have gained a lot in the LED lighting market. In the first half of this year, the gross profit of NVC LED products soared to 740,000 U.S. dollars, an increase of 1245% year-on-year; Zhejiang Sunshine's LED lighting products revenue was 65.69 million yuan, an increase of 497.29% year-on-year; and Neo-Neon LED general lighting revenue was 166 million. , an increase of 228.5% year-on-year, accounting for the proportion of the company's total revenue also rose to 23%.

Compared with LED lighting application manufacturers, the growth environment of LED packaging and chip manufacturers is even more superior. Among them are Sanan Optoelectronics (600703.SH) and Qianzhao Optoelectronics (300102.SZ).

Yesterday, Sanan Optoelectronics Co., Ltd. closed at 48.88 yuan, only 5.86 yuan at the lowest point in January of last year; and the dry lighting photoelectric stock price that landed on the GEM on August 12 has always remained high, closing at 88.2 yuan yesterday, compared to August 12. The daily price of 79.68 yuan rose by 10.7%.

In the first half of this year, Sanan’s revenue was 365 million yuan, a year-on-year increase of 69.18% and a net profit of 202 million yuan, a year-on-year increase of 257.19%. Among them, LED chip sales income of 245 million yuan, an increase of 38.34%, product gross margin rose to 41.75%, an increase of 8.64 percentage points. In the first half of the year, Qianzhao Optoelectronics achieved a net profit of 60.32 million yuan, a year-on-year increase of 96.16%, and a gross profit margin of 61.4%, although its revenue was only 130 million yuan.

"LED lighting foreign demand suddenly bleeds in the first half of this year, and domestic LED indoor lighting has begun to start, especially for industrial lighting applications LED." Senior Engineer LED Zhang Xiaofei said that in the first half of this year, Japan's LED bulb sales accounted for the total sales of light bulbs The proportion rose to 50% all of a sudden. This gave the entire LED industry and investors a lot of imagination, and the LED lighting market in Europe and the United States was also pulled.