LED energy subsidies to withdraw from the impact of the gradual elimination of the market situation is good

LED chip, packaging index stronger than the market: Taiwan September LED chip index rose to 11.27% in September LED packaging index rose to 5.98%; the same period, Taiwan electronic component index rose by 2.37%, the Taiwan weighted index rose by 1.89%. Taiwan industrial chain in September revenue barely satisfactory: we track the 9 Taiwan LED chip companies in September total revenue of NT $3 billion 803 million, a decline of 0.55%. 9 Taiwan LED packaging enterprises in August total revenue of NT $5 billion 752 million, a decline of 2.93%. LEDTV backlight demand began to weaken in June, continued to affect the performance in September, LED lighting demand is not enough to stimulate the majority of packaging plants, in September revenue declined compared to August. Industry trends and comments: LED lighting industry to accelerate the shuffle of the 20% companies will be closed; in September the global LED light bulb retail prices showed a trend of fluctuations in energy intensive environmental policies introduced favorable LED industry. Industry investment strategy: China's May export subsidy policy for the LED system has a greater impact on the manufacturers, but according to our observation, to the end of September this effect is gradually eliminated in the year of October. The start of LED lighting is obvious, with the terminal price continued to decline, the average consumer acceptance of LED products continue to improve, LED lighting will gradually extend from commercial, industrial applications to the home. Outlook November, we continue to recommend LED lighting industry chain, in the downstream brand manufacturers continue to push down prices, LED lighting products gradually into the home market, since September orders began to grow. We maintain our LED industry "recommend" investment rating, recommendation, Yankon Elec-Tech, Sanan optoelectronics. An optoelectronic domestic chip leading position has been gradually established, will benefit from the bigger competition; Yankon directly benefited from PHILPS and other leading lighting orders growth; it is beneficial to the integration effect Elec-Tech and nvc. Industry risk: LED industry supply and demand imbalance or a longer period of time; LED lighting applications start point or lower than expected; domestic enterprises in the core technology, core technology breakthrough or lag behind expectations.