Guangdong LED industry mergers and acquisitions boom continues

As Guangdong's eight strategic emerging industries in 2013 growth champion, Guangdong LED industry in the first half of this year continued strong growth momentum.

According to the Guangdong Province in the two quarter of 2014, the LED industry in Guangdong monitoring report shows that in 2014 1~6 months, the total output value of Guangdong's LED industry reached $154 billion 546 million, an increase of 23.47%.

Industry benchmark performance of listed companies more stunning. Just the disclosure of the semi annual data show that in LED lighting and LED display industry of Guangdong listed company's overall revenue and profits have increased considerably, such as Abison, nationstar, Lehman photoelectric, alto electronics, honglitronic other revenue growth over the same period the industry average.

In addition, mergers and acquisitions and expansion of the first half of the LED industry's most fire theme, a number of Guangdong LED companies have disclosed mergers and acquisitions and expansion of production announcements.

Growth motivation

The main factor driving the current round of LED boom is the rise in exports and the decline in upstream costs.

According to the ten key areas of Guangdong LED export monitoring shows that in the first half, Guangdong LED key areas of product exports reached $38 billion 277 million, an increase of 39.35%. From the point of view of segments, LED lighting, packaging, display three types of product output growth of more than 26%.

In August after landing gem aibisen to produce a beautiful semi annual report, 2014 1~6 months the company revenues 470 million yuan, net profit of 77 million 589 thousand and 500 yuan, an increase of around 60%. The company said the global market in particular, the United States and Europe LED full-color display market demand is the key to growth.

After an interview with reporters, aibisen chairman Ding Yanhui bluntly said that the company's main LED full-color display space in the international market is still very great, and there are many gaps in the market to develop, such as Brazil, Russia etc..

It is worth noting that, as the representative of Russia's emerging market demand for the rapid growth of foreign countries, is the Chinese LED companies to bring greater opportunities. Data show that in the first half of 2014, China's LED lighting products export amount of about $4 billion 350 million, of which about 440 million U.S. dollars of export BRIC countries, an increase of up to 350%. The Russian market in the first half of the export amount of about $327 million, an increase of up to 571%, in one fell swoop ranked China's top second export markets.

In addition to exports, by the impact of the upstream chip technology and the rapid decline in prices, the price gap between LED lighting and traditional lighting products are gradually reduced, the price advantage has emerged. This LED lighting product volume growth has played a significant role in promoting.

This shares LED whirlwind so that the performance of traditional lighting faucet FSL brisk. It is understood that the first half of this year, FSL LED lighting products revenue reached 421 million yuan, an increase of 341.1%, gross margin was 20.37%, compared with the same period last year increased by 6.68%, to promote the company's overall gross margin than the same period last year increased by 1.97%. LED business has become the company's main growth momentum.

M & A activity

LED good development trend, but also stimulate the desire to expand the enterprise. More and more LED listed companies choose to seize the market through mergers and acquisitions or expansion. Among them, the performance of Listed Companies in Guangdong LED particularly positive.

Available data show that in the first half of 2014, including FSL, rectangular lighting, including a number of Guangdong enterprises have disclosed the acquisition announcement. If FSL intends to acquire Suzhou moonteck Li Bao optoelectronics, the company focused on LED commercial lighting products and engineering product development; rectangular lighting has announced that it intends to 528 million yuan acquisition of Shenzhen Kang Ming Sheng 60% stake, which is the LED mobile lighting application provider, if the acquisition is successful, rectangular lighting product line will be broadened.

"Other industry bosses to meet each other generally ask 'earned no', and now we meet the industry boss, in particular, has not yet listed, will ask 'turn no'. Is not the meaning of resale. Shenzhen is not a listed LED business owners believe that listed companies with the financing advantage of the industry's non-listed company mergers and acquisitions has just begun.

With mergers and acquisitions equally fiery, as well as the ability of listed companies to expand production capacity. In August 19th this year, LED package leading honglitronic disclosure announcement that intends to invest about 1 billion ~15 billion yuan to build industrial park in Nanchang, and is expected in 3 years to achieve annual output value of 1 billion 500 million yuan.

In addition, the National Star optoelectronics has also publicly stated that in the first half of 2014, the company has developed plans to expand production, is expected to 2014, the company's packaging capacity reached 1400KK per month. Compared to the end of 2013 1000KK monthly capacity growth of up to 40%.

Rapid expansion of production capacity has also led to the concerns of all parties, especially the negative impact of the previous round of overcapacity and photovoltaic industry had lessons, so many market participants worried that the LED industry will repeat.

In this regard, Shenzhen LED Industry Association researcher said overcapacity and self Cen, are nothing to worry about, because the LED industry in the development stage, with the expansion of the application, and Shanghai export soared, the market is expanding, even if there is excess capacity, only local products in the local area, not the same as pv.

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