Gross profit margin fell into the future trend of mergers and acquisitions into the industry

The Shanghai securities news, with a large number of successive three quarterly disclosure and performance forecast, LED industry situation also is clear: industry competition, the gross margin decline trend, and expand business scale through mergers and acquisitions is the main way of many companies thickening performance. Analysts said that the fourth quarter of the lighting industry is expected to enter the season, LED lighting products prices will stabilize, the market share will be further concentrated to the industry leader, the focus and attraction in the future is still the industry mergers and acquisitions.

Gross profit margin fell to normal

At the mention of performance in the three quarter decline, has released results notice of allring technology, changelight, HC semitek, Jufei, South photoelectric and FSL 6 LED companies are invariably attributed to the fierce market competition, the company product sales prices, gross margin decline. "

"Although the company's three quarter sales grew, and the acquisition of the Japanese optical in June included in the consolidated scope, but by the impact of competition in the market, the company product sales prices, the third quarter gross margin decline, did not reach the expected sales revenue growth. Million run technology to explain the reasons for the decline in the three quarter results. Million run technology results show that in the first three quarters of this year the company's net profit of $28 million 996 thousand and 700 to $34 million 113 thousand and 800, down from 0% to.

And those who do not have mergers and acquisitions expansion of the company's performance fell more, in addition to the gross profit margin decline, the exchange rate changes and increase R & D investment is also one of the reasons for the decline in performance.

Despite the decline in gross profit margin, but with the advent of the fourth quarter of the season, the LED industry is still worth looking forward to. Dongxing securities research report that, with the gradual elimination of backward production capacity, LED lighting products prices will gradually stabilized, the market share will also focus on industry leaders.

M & A integration is the industry trend

Although the gross margin decline, but in the notice issued performance of LED industry chain, there are still more than half yejiyuzeng, even there are double the performance of the. According to statistics, there are 7 companies in the industry released forecasted to notice, the Jiawei shares in the three quarter of 146.28% to 175.07% yejiyuzeng, Chau Ming technology three quarter forecasted 125% to 147%, the photoelectric yejiyuzeng 103.39% to 116.51%, 90% to 110% of the expected earnings growth riyadh.

On the whole, the industry chain and cross industry mergers and acquisitions, expanding the scope of the table is the main reason for the growth of the company's performance. As the photoelectric said its acquisition of Sichuan advertising media limited May included in the consolidated scope, Shanghai Youtuo The Pr People Consultancy Limited and Shenzhen Eastar Electronic Co. Ltd in March included in the consolidation scope, thickening performance; said Riyadh, laford cultural since July included in the consolidated statements, Jin Lixiang since August incorporated in the consolidated financial statements. In addition, rectangular lighting acquisition of Shenzhen Kang Ming Sheng Technology Industrial Limited by Share Ltd since April and the table, Jiawei shares earnings growth from its acquisition of Jiangsu Huayuan Amperex Technology Limited.

LED industry mergers and acquisitions, integration in the next period of time will continue to maintain high fever. One of the respondents said the industry.

According to incomplete statistics, allring technology, photoelectric, Riyadh, Jiawei shares, Elec-Tech, KingSun six LED industry chain companies in the suspension planning major events. In addition, there are a number of companies have issued a merger plan.

Analysts said that with the decline of LED industry gross profit, farewell barbaric growth, industry mergers and acquisitions integration intensifies, which is conducive to improve the degree of concentration of the industry, with the advantages of technology and scale leading companies are also good opportunities for growth and expansion.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).