LED industry expansion positive attitude, Citigroup Global card refers to the imbalance between supply and demand will be concerned about the proposal to sell 100 million light

Due to the recent expansion of LED manufacturers continued positive action, whether it is the potential supply and demand imbalance crisis, but also caused concern of foreign circles. Citigroup Global Securities Industry Analyst Gassin Hill published the latest LED industry research report pointed out that over the past nearly half a year since Taiwan LED companies seek financing action quite worthy of attention, the first half of next year the whole LED industry capital expenditure and revenue ratio will therefore rise to 20%, while the downstream packaging serious imbalance of supply and demand will be higher than the upstream, so the billion light investment rating from "neutral" to "sell" cut, the target price is maintained at 135.9 yuan, the crystal electric rating and target price will remain in the "buy" and 158.95 yuan.

Gassin Hill pointed out that the long-term prospects of LED industry undoubtedly, investment during the next 12 months, but in terms of, but must be conservative view, mainly because LED next year as the market demand does not think such a large outbreak, the most worth seeing is only 7 inches below the backlight demand, but this is only part of the overall needs of LED 20%, including LED mobile phone or other consumer electronics with LED annual growth rate even negative.

From the supply side, Gassin Hill said, nearly 1 years since the LED manufacturers have launched a financing of about 21 billion yuan, the new capacity is expected from next year, a massive Q1 has been extended to Q4, will make the capital expenditure and revenue ratio of LED industry from the second half of this year increased from 12% to 20%, due to the current production rate has increased to cope with the demand for next year, so early next year opened up new production capacity, the average increase of about 20% upstream and downstream packaging increase is up to 40% above, will inevitably lead to overcapacity concerns.

Gassin Hill pointed out that in terms of investment strategy, the upstream crystal electric will be better than the downstream billion billion light light, perhaps because of the short-term price Q4 season effect and reinvestments gintech potential to inject about 800 million to 900 million yuan profit bullish theme can be expected, but should still meets the high profits.

The idea of expansion planning, billion light said, because the LCD backlight needs warm, SMD orders continued production in short supply, and other special lighting application progress (such as street lamp etc.) are not affected by seasonal factors, and also makes the white light Lamp LED product demand continued to be optimistic, there really is do not see the so-called excessive expansion of the industry phenomenon.

Source: Lean news