Sequelae show: LED industry investment surplus caused by the price change

For the LED industry, the winter has lasted for a year, but the spring is still so far away.

At the beginning of November, LED enterprises gathered important Shenzhen came the enterprise production news. The reporter was informed that the Shenzhen hiboled photoelectricity Co. Ltd. (hereinafter referred to as hibo photoelectricity), the level of LED billion yuan enterprises, due to funding chain issues into a quagmire.

After a few years after the carnival, LED industry continues to show the aftermath. Some industry insiders predict that the LED industry reshuffle is likely to continue until the middle of 2014, and even may repeat the mistakes of the photovoltaic industry.

Nearly 60% LED decline in corporate profits

In hibo photoelectricity behind a large number of LED enterprises are experiencing a significant decline in profits or losses. Reporters rough statistics found that in the 42 LED related listed companies, the three quarter profit decline or loss of up to 24.

October 25th, Tianlong photoelectric three quarterly report released in 2012, the company's current revenue of about $41 million 380 thousand, down by 76.67%, attributable to shareholders of listed companies net profit loss of about $32 million 660 thousand.

In October 26th, three quarterly losses followed elec-tech. The company's three quarter revenue of about $721 million, down by 12.23%; attributable to shareholders of listed companies net profit of about -888 million.

October 29th, the three quarter of the loss of LED related companies and more than a day through shares: the company's current revenue of $287 million, down by 19%; net profit attributable to shareholders of listed companies loss of $30 million 80 thousand.

In addition to the loss of these 3 companies, there are 21 LED companies have seen a decline in net profit. Among them, China Silan microelectronics, Chau Ming technology 3 companies net profit fell over 80%.

For the current status of the LED industry, senior analyst at the Institute of LED two market senior analyst Wang Luyao said, the upstream investment surplus". Investment adviser senior researcher He Zaihua believes that the direct cause is overcapacity. This phenomenon is mainly affected by two factors: on the one hand, the weakening global economy, investment and production slowed down, and the domestic LED enterprises profit most rely on exports; on the other hand, the market blindly follow the trend of the phenomenon is serious, in the low-end products together, the long-term price scrimmage.

Enterprise profit margin release inventory

For many LED companies, the direct approach is the production capacity surplus price war.

Recently, the reporter called with the name of investor changelight secretaries office staff said that last year, many companies are expanding production, there are many companies Paohuo phenomenon, so the chip prices fell more powerful. But she stressed that although prices fell, but the company's sales rose.

Dry photoelectric three quarterly show, the current total profit, net profit fell, the main reason for the chip prices compared with the same period last year, a larger decline in chip gross margin decreased due to.

Hua Dong photoelectric office stakeholders also said that the company's sales have increased, but the price decline is larger.

He Zaihua believes that the current LED disorderly development, lack of market demand, product features and photovoltaic industry is exactly the same in the low-end market environment, if not promptly see LED enterprises, is likely to fall into a similar photovoltaic industry deadlock.

Guangdong lighting electrical association secretary general Guo Xiu predicted that the LED industry reshuffle will continue until the middle of 2014.

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