LED lighting industry investment strategy

Introduction: in the front end of the value chain of LED epitaxial wafer and chip link has a high added value, the value chain presents a "long tail curve" shape. In the outbreak of LED lighting, upstream epitaxial and chip link up the maximum elastic performance.

Investment in investment strategy

Idea 1: LED chip most benefit

From the LED lighting value chain, the chip is the most beneficial link. From the perspective of the composition of the value of the lighting industry, the epitaxial chip profit accounted for about 70% of the packaging segment is about 10~15%, while the application is about 10~20%. At the front end of the value chain of LED epitaxial wafer and chip link has a very high added value, the value chain presents a long tail curve shape. In the outbreak of LED lighting, upstream epitaxial and chip link up the maximum elastic performance. The key competitive factors LED chip depends on the capital, technology, and the size of the industry will show strong strong trend. We believe that the advantages of R & D technology, patented technology, as well as the advantages of scale enterprises will benefit the most.

Investment ideas two: lighting needs to start, focusing on the application of leading lighting leading

With the development of China's LED lighting applications and brand services to enhance the status of downstream applications and brand services will gradually increase the value of the link. In the long run, China's LED industry value chain value curve from the "long tail curve" to "smile curve" development, that is, the curve A curve B development. We believe that with brand advantage, channel advantages, as well as the size of the industry's leading edge will benefit most.

Investment ideas three: accelerate industrial integration, focusing on the advantages of the industry chain segments

Accelerate the pace of industrial integration, industry concentration gradually increased, with the core technology advantages, channel advantages, as well as the size of the industry chain segments leading edge will grow rapidly.