Export LED display business will develop rapidly

Through the further development of the industrial chain, we can find the factors of export-oriented enterprises to benefit from the advantages of cost, LED technology development and the vast overseas market space in three aspects, future growth is still good, investors can benefit from the related enterprises due attention to the rapid development of export business. LED display with a cost advantage from the LED display industry, domestic enterprises have a certain cost advantage compared to foreign enterprises. At present, the domestic LED display price.

After rapid expansion in 2010, LED display industry into the integration period. Most of the enterprises are in decline in gross margin, revenue growth stage, coupled with the overall industry competition confusion, concentration is low, the market generally believes that the value of small LED display industry no barriers to competition, homogenization of serious, investment. LED display with a cost advantage from the LED display industry, domestic enterprises have a certain cost advantage compared to foreign enterprises.

At present, the domestic LED display price is about 30%-50% of similar foreign products, but still can maintain a better gross margin, mainly due to the domestic basic material prices and VAT refund policy. These two factors make the cost of domestic LED display is about 30% of the cost of foreign LED display, low cost greatly improve the competitiveness of domestic products. At the same time, the use of domestic lamps also significantly down the cost.

From the cost structure of the domestic LED display, which accounted for the largest LED lamp, accounting for 39%. Domestic enterprises are using domestic LED display tube, or self packaging, LED lamp, and buck, and other foreign enterprises by Daktronics international manufacturers (Nichia, CREE) lamp.

Data show that the domestic LED lamp price is about 1/3 of international manufacturers, if the assumption that other costs at home and abroad are the same, only because of the difference between domestic and foreign lamps, the domestic display costs about 44% lower than international manufacturers. In addition, the average wage is about 7 times of China, if the assumption that other costs remain unchanged, only labor costs, the overall cost of domestic display is lower than foreign countries by 17%.

The empty box, steel frame, PCB board and other products at home and abroad, the price gap is larger, coupled with the overall design costs, considering the cost of domestic products is about 30%-50% of foreign products. Domestic exports of LED display will enjoy 17% VAT refund, it is estimated that government support will further reduce costs. The domestic market is limited by the vast overseas market LED display industry after experiencing explosive growth in 2010, the overall growth rate will decline significantly.

According to the Institute of Engineering LED estimates, in 2012 the domestic LED display industry market growth rate has dropped to about 10%, is expected to 2013-2015 LED display industry growth will remain low in 10%-20%. But compared to exports to maintain a relatively high growth rate. Data from various companies is not difficult to find, although the overall growth has slowed, but the export situation is significantly better than the domestic situation.