Deep water operations, revenue and price trends in the era of LED

According to statistics 19 LED industry performance, 2015Q4 and 2016Q1 industry revenue growth significantly improved year on year, much higher than the same period last year. Revenue growth was significantly increased by the impact of mergers and acquisitions. Excluding the impact of mergers and acquisitions, the 4 quarter and the first quarter of this year, revenue growth of approximately the same period in was about 22.36%, respectively, higher than the same period last year. 2015Q4 LED industry net profit fell 14.9%; 2016Q1LED industry net profit rose by 31.1%.

LED enterprise is to drink water or eat seafood?

Source: Societe Generale Securities

2015Q4 LED industry revenue year-on-year increase but net profit fell for the first time, is affected by the price war, industry continued to pile up in excess of requirement makes the industry overall gross margin compared to the same period last year fell 2.5%; two is affected by the 4 quarter of the industry's substantial impairment losses, a total of 720 million, compared with 317% increase, the LED chip leading three the 4 quarter 250 million photoelectric one-time provision for asset impairment loss, net profit fell 40%.

2016Q1 exclude the actual revenue growth and net profit growth after the merger was the first quarter of the previous quarter, mainly three positive factors of the industry began to show. First, in 2016 for the sports season, the demand for better display, small spacing is now particularly bright; two is the low power packaging prices gradually bottomed out, the middle reaches of the packaging manufacturers; the three is to accelerate the penetration of LED lighting.

Source: Societe Generale Securities

2015Q3 asset liability ratio of Q1, Q2 increased significantly, mainly due to the Q3 quarter LED industry to participate in the acquisition of more reasons, but to 2015Q4 down to 35.7% this year, Q1 once again pulled up slightly, an increase of nearly 2%. Mergers and acquisitions in 2016 is mainly to increase the production situation.

Commercial and lighting prices rose, light source and outdoor trend down

Source: Guangdong price index platform

From the time point of view, in January, the lighting industry to enter the rest of the production period, many lighting factory in advance to enter the Spring Festival mode, but the market has not significantly reduced the volume of lighting market trend, the overall market sentiment. February, the lighting factory and businesses are still in the Spring Festival mode, in late starts.

At the beginning of March, the lighting market rely on "open out" and the exhibition effect, as usual appear small peak, the index rose slightly compared to the same period last year, and showed a steady upward trend, show that the lighting market did not influence the pessimism.

The overall performance and is expected to April. At the beginning of the month, slightly down, but after a strong trend, at the end of a year to the highest point. Lighting market production and sales into the normal, coupled with the relative concentration of the show, the increase in the volume of product orders, led the overall index remained at a high level.

From the series of products, lighting products price index showed a floating state, mainly after the start of the traditional lighting and lighting products will be "temporary open out", to a certain extent, to boost the index upward, but the business in April 3, strongly held a new conference and dealer meetings, making "diminuendo open out of stock, once the supply channels comprehensive dredging, lighting products competition, prices will continue to fall for a period of time, the weak lighting series or slightly floating money.

Commercial lighting price index to maintain moderate growth in January, at the end of the 3 show a small decrease in commercial lighting products is mainly influenced by the rigid demand of the market, after the start of the exhibition and large-scale lighting stores new stimulating commercial lighting products sales. But in March all kinds of large-scale projects have not yet fully into the normal, so the sales of commercial lighting products and the amount of procurement has not been caused by a large span. By April, the lighting exhibition will be active, all kinds of large-scale projects have been gradually restored, commercial lighting products sales growth.

Outdoor lighting and light source price index showed a steady decline in the situation. Outdoor lighting, at present, local governments to carry out the construction work plan is unclear, although most of the market in order to restore is relatively stable, but dealers and purchasers still hold a wait-and-see attitude, but is expected in May a large number of key projects and municipal facilities will be put into construction, increase the rigid demand for outdoor lighting, is expected to rebound.

Light series, after a period of rest period, with business operations gradually returned to normal, the original inventory after a month of digestion is tight, promote the lighting products prices rose slightly, plus the LED light source through the unceasing innovation and increasingly mature technology improvement, market penetration will continue to increase, LED light source products in the market share will remain stable in the light before the next period of time series index. (text /LED net Skavy)

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