Brokerage point of view: LED demand pick up, outdoor screen, car lighting and other pregnant new machine

LED bulb price decline slowed down, the price bottomed out

2013-2015 replaced LED bulb price decline of 60W were 30.74%, 23.36%, 11.59%, to replace the 40W LED bulb price decline 19.25%, 17.88% and 14.52% years, the price decline has slowed down, the future LED will continue this trend. Following the March part of the LED packaging manufacturers price increases, crystal electricity also recently issued a letter of price adjustment letter, said it would raise the price of some series of LED chips. The next period of time the price of chips may be transmitted to the domestic chip manufacturers, chip manufacturers will contribute to profitability. With the decline in LED subsidies in the future, the supply side continues to shrink, as well as the decline in the size of the package, LED industry overall supply and demand will gradually improve.

Demand pick up, LED penetration will gradually increase

2015 global LED lighting penetration reached 27%, and maintain an upward trend. Ping An Securities believes that the domestic LED lighting penetration is slightly higher than the global penetration level, about 30%, there is still considerable room for development. According to LEDinside report, in 2015 China's LED packaging market size of $8 billion 800 million, an increase of 2%. While the 2016 back lighting manufacturers restocking demand emerged, is expected in 2016 Chinese, LED packaging market size of $9 billion 300 million, a year-on-year growth will reach 5%. In terms of LED chips, the market share of Chinese manufacturers is expected to increase to 76% in the year of 15, with the development of domestic LED manufacturers in Southeast Asia, India and other emerging markets, the future will continue to benefit.

Outdoor screen, car market is expected to form a new market opportunity

With the continuous improvement of the level of LED display technology, display effect is continuously enhanced, and LED display technology progress also greatly reduces the operators built screen cost, and operation and maintenance cost, so the LED display has become a new favorite outdoor media. 2008-2014 LED outdoor media screen compound annual growth rate of 31.4%. The 13th Five-Year plan that will vigorously develop new energy automotive industry, domestic car manufacturers market share will gradually increase, the current vehicle LED suppliers are mainly OSRAM, Lumileds, Hongli etc.. The rise of automotive lighting market provides new opportunities for LED vendors.

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