Foreign investment in Taiwan LED industry investment rating

In January 28th, JP Morgan securities transferred to the Taiwan LED industry investment rating, the crystal electric (2448), (2393) and Baihong billion light (3031) three shares by reducing "code" to "neutral", were given 47, 36 and a target price of 20 yuan. LED group with the global economic recession concerns, as well as the stock market hit, JP Morgan panel industry analysts believe that now is the time to actively seek to buy points.

Europe and the United States affected by the financial tsunami and the global stock market crash, 2008 by the end of 2009 and end product consumption demand visibility, chaos. However, the panel industry had a product is the LED panel, A new force suddenly rises., mainly for notebook computer manufacturers in 2009 new project planning, used LED to replace the traditional CCFL as backlight panel.

LED and panel prices plummeting, stimulate this wave of LED panel demand prediction LED notebook computer market penetration, by 2008 12%, raised to 40% in 2009. The original LED industry is facing the pressure of oversupply, because the relationship between the large number of notebook computer companies are not so nervous. Leung Chun Lin said that in the past (2409), AUO and CMO (3009) etc. have been put into the development of LED, emphasizing the vertical integration, a threat to the pure LED industry, now because the market demand emerged, coupled with the industry has slashed capital spending next year, to be due to the decline in gross profit, industry competition under heat drop the industry also has the ability to maintain a certain capacity utilization.

LED expected prices will stabilize in the second quarter of 2009. LED group in this wave of global stock market crash effect, not fixed transport, but he believes that just buy the opportunity. At the same time considering the variation of mobile phone demand, he lowered the crystal power, light and billion profit this year is expected to Baihong 1.6, 5.02 and 1.6 yuan, 0.8 in 2009, 3.28 yuan, 1.3 yuan, the target price to 47, 36 and 20 yuan, but the rating rose to "neutral".

Source: financial sector