ST three: will be high growth industry in talent shows itself

LED asset injection after asset restructuring. In July 8, 2008, Tianyi Science and technology to implement the reform of non tradable shares is completed, the implementation of the resumption, after a series of asset acquisition and stock dividend, the original three electronic all LED and related assets into Tianyi technology. After the resumption of the company name change from "Tianyi Polytron Technologies Inc" for "three Au Optronics Co", referred to as the company stock since July 14, 2008 by the "ST Yi day" is changed to "ST three". The company's main business change for R & D, production and sale of panchromatic ultra high brightness LED epitaxial wafer and chip.

LED application prospects bright. According to iSuppli's report predicts that from 2006 to 2012, LED global market CAGR will reach 14.6%. The main part of the growth is ultra high brightness and high brightness LEDs. ISuppli is expected in 2012 the total LED market will reach $12 billion 300 million, of which the ultra-high brightness LEDs will occupy 31% of the total revenue of LED. U.S. market research firm CIR predicts that in 08 years LED industry market will reach $6 billion 800 million, an average annual increase of 20% to 30%. The photoelectric technology industry association (PIDA) is expected in 2008 the global chip output value will reach $9 billion 200 million, the average annual growth rate of around 10.2%, including high brightness and ultra-high brightness LED chip market average annual growth rate will reach 20%.

Technical advantages and scale advantages enable companies to benefit from the rapid growth of the industry. In the LED industry, has technical advantages and scale advantages of enterprise competitive advantage is more obvious, more talent shows itself which is decided by the characteristics, the LED industry: first, fast technological progress, industry changes quickly, without good technical innovation ability, will soon be eliminated; second, only large scale the enterprise, in order to provide sufficient funds for technology research and development; third, in the emerging industry, the shortage of time, the production of large scale enterprises will quickly occupy the market, greater market share; fourth, LED industry chain, technical barriers to the upstream industry chain industry occupies 70% of the profit is high, only with sufficient technical ability research and development of enterprises can enjoy the profits of the upstream industry chain. ST three is both technology and scale advantages of the domestic LED enterprises.

Source: Soochow securities