LED investment is the biggest risk for downstream applications overcapacity

With the gradual opening of the downstream market, the operating space and imagination is relatively large, becoming the first choice in the eyes of investment. From the survey situation, facilities, service industry has attracted more and more attention in recent years, according to the development of industry and the problems encountered, truly keep up with the industry supporting the development of small enterprises, there is great development space.

Industry gradually mature, compared to the development of more and more fully downstream sectors of the industry chain, to provide services for the development of various sectors of the industry, such as electronic business platform and other services.

LED investment is the biggest risk for downstream applications overcapacity

In 2014, China's LED industry is the most worthy of investment in the link, the downstream application topped the first, followed by supporting services industry ranks third. Over the past few years, the upstream there is a relatively serious structural overcapacity, even if the market began to pick up in 2013, but the vast majority of enterprises are difficult to increase incremental income, net profit margin declined significantly.

As the industry matures, it is on the scale of enterprises also gradually pay attention to build their own material analysis laboratory, laboratory testing device, and production began to gradually introduce automated production equipment, equipment will also usher in the development of enterprises. The biggest risk factors should be paid attention to in 2014 the industry overcapacity in the proportion of 56%. Based on a few years ago, the industry's investment accumulation, production capacity will be gradually released, the market demand continues to improve, but can be matched with the capacity is unknown.

In particular, the boom in the market, there are signs of the influx of investment again, which will lead to a new round of overcapacity, but also a lot of people in the industry are worried about.