LED further enhance the degree of concentration of industrial chain, industry leaders will steadily improve!

2017 started the first day, LED chip leader Sanan optoelectronics downstream released price notification, part of the product price 8%.

As the LED chip enterprises Sanan optoelectronics prices, strong validation of the overall supply and demand situation of LED industry has undergone a fundamental change, not only because of the elimination of backward production capacity to supply side contraction, is the steady growth of LED downstream demand side, profitability improved steadily, reiterated suggested strong concern LED industry has a big chance.

We have to keep track of the LED industry chain, LED chip, Australia and many other leading three LED chip companies began full production from 16 in the second half of the year. Taiwan EPISTAR chip leading company said that due to four yuan LED, LED backlight, security surveillance, intelligent mobile phone flash, car products significantly downstream demand pull from the end of the two quarter last year already full production. Therefore, the three price reasonable, and verify the overall supply and demand pattern of LED industry is continuing to improve.

From the beginning of 16 LED chips and packaging successive price, marking the end of the overall LED industry chain reshuffle, the industry entered the era of stable income from the era of excessive competition.

We see LED upstream chip end after 15 years of shuffling over, behind the chip production capacity gradually eliminated, leading Taiwan crystal power, CREE has shut down 25% production capacity, Samsung, LG is shutting down part of the production capacity, the domestic government subsidies and the beginning of the 16 year significantly reduced, the domestic expansion of new supply dropped significantly. At the same time, the lower reaches of the country to ban the Bering and then increase 60%LED lighting demand, small spacing LED CAGR of 28%. Therefore, we can observe that from the beginning of the 16 year product price has 5-10% chip package; some products prices more than 15%, the three part of LED chip products jumped 8%, once again verify the overall LED industry supply and demand structure has improved.

LED further enhance the degree of concentration of the industry chain, the chain continued to solidify the pattern, the depth of the industry leader benefit.

With the industry concentration further enhance the future of the domestic LED chip market will only 5-10 large-scale enterprises, the industry ranked the top five chip enterprises reached revenues accounted for 65%; packaging enterprises especially, packaging companies declined from 14 years in more than 1 thousand and 500 to 16 years only more than 1 thousand, the future will continue to increase concentration. LED industry chain concentration continues to improve, the chain continued to solidify the pattern, industry leaders will steadily improve bargaining power!

Focus on the LED industry chain opportunities, chip links most benefit. Optimistic about the chip leader: Australia Shunchang, an optoelectronic package; leading: Linsen nationstar, Hongli Newell; Yankon, FSL lighting leader.

LED upstream chip manufacturers is the core part of the LED industry chain, leading listed companies such as Australia Shunchang, Sanan optoelectronics etc.. Australia Shunchang two year after the completion of the total capacity of up to 800 thousand / month, at the same time increase the strategic stake in its subsidiary Rawlinson, power Australia to further consolidate its leading position of LED chip. An optoelectronic recent moves constantly, the completion of the second phase of the employee stock ownership plan to buy nearly 91 million 700 thousand shares, the layout of compound semiconductor chip material, signed the "development of financial cooperation agreement with CDB, the company focused on the layout of LED chip, integrated circuits and other fields to accelerate overseas acquisitions and expansion of production capacity.

LED midstream package link leading listed companies: Linsen, nationstar, Hongli Newell; Linsen package of capital expansion, capital investment 5 billion 500 million, 500 million Australian LED lighting project, at the same time increase or the acquisition of a number of lighting companies, and plans to expand production capacity of future packaging can exceed 35000KK/ months; nationstar within 12 months of three time expansion, the current capacity of small spacing over 800kk/ a month, and signed a patent license agreement with the United States white GE, to further expand overseas sales and lay a solid foundation; Hongli Newell will depend on the price further cultivating the lighting package, the recent push ESOP and the chairman of the holdings, show the management of bigger and stronger confidence.

LED lighting and application of leading listed companies are mainly FSL, Yankon; FSL 3 quarterly earnings jumped 281% in the first half of 16, Yankon LED lighting of 40% revenue growth, sales growth of 60%, the whole year is expected to further LED lighting volume can be expected.

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