Rectangular lighting: LED industry chain integration accelerated, education business earnings are expected to erupt

Rectangular lighting is one of the leading enterprises in the field of LED lighting device packaging in china. Companies to accelerate the integration of the LED industry chain, the traditional main industry position is strong; strong transformation of the education industry, is expected to become early childhood education, international education leader, the future profitability of space can be expected. Currently only 6 billion 900 million of the market value of the company, the future market value of a conservative estimate of the market value of more than 10 billion, the market value of greater flexibility.

LED industrial chain integration accelerated, to create the lighting industry ecosystem: rectangular lighting is one of the leading enterprises in the field of LED lighting light source packaging in China, strong scientific and technological strength. 2015 acquisition of 60% equity interest in the company in Shenzhen, the transformation of LED packaging and vertical manufacturing applications, industrial chain integration significantly. And invested 100 million yuan to set up a rectangular Efficient Finance Holding Ltd, financing for the main business of LED, in order to create a lighting industry ecosystem.

LED lighting penetration of huge space, high growth sustainable market: nearly ten years, China LED market scale the annual growth rate of 37.35%, the strong momentum of development. 2016 global LED lighting penetration is only 31.30%, LED lighting penetration huge space. With the continuous improvement of LED performance, energy conservation and environmental policy tightening, the LED industry will continue to be at the high point of the boom, the next 10 years, LED application market growth is expected to reach 25%.

To the transformation of the education industry, business prospects: the company intends to invest 100 million yuan to set up Shenzhen Qianhai square education management company, and intends to set up a 400 million yuan investment in rectangular Yide education industry investment fund mergers and acquisitions, starting early childhood education and international education. Fiscal expenditure in 2012 accounted for only 4.28% of the proportion of GDP, significantly behind the world average of 4.7% (developed countries) level of 5.1%, the future is expected to further increase investment in education. Education is the current supply is far less than the demand for the industry, the transformation of the education industry, the rectangular group, a broad space for development.

The education industry M & a wave after another, high growth is expected to continue: early preschool education industry brand premium significantly, M & a wave of mergers and acquisitions after another, mainly focus on the education informationization, early education, K12 education and counseling. With the growing importance of Chinese family education, family education spending accounted for the proportion of consumer spending increased sharply from 5.3% in 2015 to 8% in 2009, early childhood education has become the focus of wrestling, 2013-2015 growth of up to 20%. The third baby boom and two child policy will promote a new round of birth peak, and the rate of admission in China is still a large space for children, early childhood education market is expected to continue to grow.

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