Mu Linsen, the national magnitude have expanded, LED industry concentration further improved

"Without expansion, or death."

Two years ago, a LED packaging industry described the competition in the future with these words. Now, all the major packaging manufacturers to verify this action seems to be, in their "expansion" on the road is farther and farther.

And along with the expansion of the industry, as well as inter industry mergers and acquisitions, "big fish eating fish", industry concentration further improved.

A number of packaging plants have expanded production

13, nationstar a paper announcement that, its strategic development plan based on the company, according to the LED package to judge the market and existing customer orders, intends to invest no more than 200 million yuan for the company expansion projects display devices. The construction period of the expansion project is from March 2017 to July 2017.

In fact, this is the third expansion of China Star optoelectronics since April 2016.

October 11, 2016, the state star photoelectric announcement, plans to invest no more than 400 million yuan for the expansion of the company's packaging project, the expansion project construction cycle from December 2016 to June 2017.

April 27, 2016, the state star photoelectric announcement, plans to invest no more than 240 million yuan for the company's packaging and component project expansion, expansion project construction cycle from May 2016 to December 2016.

A list of China's LED packaging vendors expansion plan

In addition to nationstar, also vigorously expansion and rawlinson. In May 26, 2016, M.L.S. announced that the fund-raising net Linsen not more than 2 billion 315 million 739 thousand and 400 yuan to raise funds will be used for the SMD LED package Xiaolan reform project, Ji'an SMD LED package a building and Xinyu LED lighting applications a construction of three major projects, which intends to invest 615 million 755 thousand yuan, total 943 million 173 thousand and 300 yuan, 756 million 811 thousand and 100 yuan.

In January 17th this year, announced the "Xinyu Linsen lighting a LED application project" changed to "Xinyu LED Lighting Kit project". After the change of equity investment projects will be built in a LED display panel and LED lighting indoor lighting board production base in Jiangxi Xinyu high tech Zone, the project design annual production capacity of 15 million 903 thousand and 300 square meters, total investment amounted to 1 billion 35 million 299 thousand and 100 yuan.

The same as the packaging manufacturers, Hongli Newell REFOND have expansion action. Hongli Newell still recent "investor relations activities mentioned in the record form", "in 2017, the LED package to expand production, general lighting, automotive lighting and other applications to expand the scale in the existing business."

Industry concentration further improved

Along with the expansion, there are many cases of mergers and acquisitions between the industry, the upstream and downstream, and even the industry. According to incomplete statistics, over the past two years, with the LED industry related mergers and acquisitions cases more than 70, involving hundreds of billions of dollars.

In March of this year, the acquisition of OSRAM lighting business such as wood forest joint venture LEDvance case settled. The final amount of the transaction is about 500 million euros. OSRAM will also receive a patent grant of up to 100 million euros for the buyer's team to use its trademark in the next few years.

Executive general manager Lin Jiliang Mu Linsen said, "OSRAM is the world's second largest lighting company, with its technical strength, excellent brand image and industrial advantages, marketing channels, covering more than 150 countries and regions worldwide. The acquisition of OSRAM, is not only conducive to Linsen brand promotion, is also a very good international Linsen 'sea'."

Large, after such a consortium with LEDvance Rawlinson, the future will be to enter the scale of ten billion yuan rawlinson.

Other packaging companies have also expanded in scale through epitaxial mergers and acquisitions. In addition, many enterprises rely on extension of mergers and acquisitions, the performance is more beautiful, for example, REFOND Ling Tao will be included in the consolidated financial statements, the photoelectric allring technology will peak Beijing ccgood network marketing planning Co., Ltd. Beijing hundreds of millions of wireless information technology into and scope, have nominated one billion yuan club".

Major LED packaging companies listed in the 2016 annual results

Note: data from more than 1. companies 2016 annual results letters; the revenue of 2. tables for the corresponding enterprises 2016 annual total revenue, in the net profit for the corresponding enterprises in 2016 net profit attributable to shareholders of listed companies.

However, it is worth mentioning that, LED packaging industry, apart from the acquisition of Newell smalite Hongli, Dachang merger small factory horizontal mergers seldom occur.

Insiders said, LED industry has gradually entered the mature period, LED packaging industry is an industry with no exception whatsoever in general, entered the mature period, will be accompanied by reducing the number of enterprises, industry concentration increase, the profit level to stay in the enterprises gradually recovered. But the process of reducing the number of enterprises in the LED packaging industry is different from that of the general electronic industry.

The general electronic component, after entering mature period, the product technology and the technology will tend to be stable, the production equipment renewal rate will slow down, the industry enterprise will usually realize the expansion through the annexation way. While the LED package in technology at present there are still some room for improvement, the production process and product type are not completely cured, as a result, the leading manufacturers, and the acquisition of some equipment and technology has eliminated the risk of peers, as a direct resource for direct purchasing the new equipment.

This also explains why the LED packaging industry is one of the small and medium-sized packaging factory gradually withdraw from the industry, and large manufacturers are still contrarian, rapid expansion, but the merger of small factories and horizontal