Shenzhen intends to popularize LED lighting good local listed companies

Recently, Shenzhen city launched the "Shenzhen city to promote the application of LED lighting products plan" opened the local government in the LED lighting policy by the overall planning to change the rules for the implementation of the curtain, the proposed two years to complete the public popularity of LED lighting target.

It is understood that there are a number of Listed Companies in Shenzhen, the government invited to participate in the formulation of the above program.

In the LED industry chain, Shenzhen is planning to promote the LED industry to the "12th Five-Year" end of the annual output value of 130 billion yuan (RMB, the same below). At present, the overall output value of Shenzhen LED industry reached 70 billion yuan.

Layers of the policy also makes LED lighting this huge cake seems more attractive, but the LED lighting industry is not satisfactory performance of listed companies. In the eyes of a listed company executives, at this stage we are to seize the market, overcapacity squeezed corporate profit margins, still waiting for the release of the results, while holding sufficient cash of Listed Companies in the future will be from the government in the promotion of LED lighting in EMC mode of benefit.

Policy favorable local enterprises

In November last year, the national development and Reform Commission and other departments jointly issued the "notice on carrying out" 2012 annual financial subsidies to semiconductor lighting products to promote the work of the organization, announced the China out incandescent roadmap, among them, the lock 100 watts and above ordinary incandescent lighting policy has already begun in October of this year.

The first half of this year, the State Council executive meeting to discuss the adoption of the "national basic public service system of" 12th Five-Year "plan", to quantify energy-saving lamps and LED lamps arranged 2 billion 200 million yuan subsidy policy support, financial support. Subsequently, Guangdong launched the LED lighting product implementation plan. However, insiders have said that although the policy intensive introduction, but there is no specific implementation details, the company benefit from limited.

Occupy the national LED industry, half of Shenzhen, plans to popularize the field of public lighting LED lighting program for two years, so many companies are aware of: knife and fork to eat cake time to.

Shenzhen took the lead in the public lighting field, complete the application and promotion of LED lighting products, new lighting projects are LED street lamps, garden lights and landscape lighting lamps. The original use of non LED lighting products strive to two years, that is before the end of 2013 stages to complete the transformation.

According to statistics, as of the end of 2011, Shenzhen street lamp is about 305 thousand, with a total power of about KW, the annual electricity consumption of about 260 million degrees, of which LED street lamp has more than 23 thousand. With the recent successful Guangdong KingSun Qingyuan 46 thousand street lights, the amount of 90 million yuan rough calculation, only one in Shenzhen LED street lighting transformation will create a market capacity of around 550 million yuan.

A listed company executives believe that the future of LED lighting market is still the most extensive from the interior lighting.

Orient Securities believes that the implementation of the policy will accelerate the development of LED lighting industry, if the smooth promotion of Shenzhen LED lighting, there will be a strong demonstration effect. UBS Securities is expected in the 4 quarter of this year will enter the intensive period of local project tender.

It is worth noting that the Shenzhen LED lighting promotion program expressly to give priority to the use of high efficiency, high degree of local supporting products, support local LED lighting companies have the appropriate conditions, the use of their own advantages, in the implementation of LED lighting project.

Listed companies benefit EMC model

According to the observation, increase profits become prevalent LED industry and LED lighting industry listed companies' phenomenon.

Rectangular lighting, for example, in the first three quarters of 2012 operating income of about $400 million, an increase of 27.78%, net profit attributable to shareholders of $40 million, down by 14.88%. The company said that in order to consolidate and expand market share, take the initiative to cut prices, resulting in gross margin declined.

In addition, such as allring technology before three quarter revenue grew 1.47%, net profit attributable to shareholders of listed companies fell 18.65%; the state of science and technology revenue grew 6.17%, net profit attributable to shareholders of listed companies fell 84.83%.

However, the cash is more adequate, there is a good financing platform LED lighting listed companies will get more opportunities in the promotion of LED lighting, which is the reason for the government to promote the use of EMC model. EMC model is the contract energy management mode, the mechanism of energy using units without investment, upgrading equipment investment energy service company, the full cost to save energy costs to recovery energy saving project investment and profit.

Shenzhen LED lighting promotion program devaluation contract energy management mode of operation. Executives said the above listed companies, in order to gain more profits, the company is considering the establishment of its own contract energy management company.

UBS Securities said the local government LED energy-saving renovation project are mainly EMC and BT, in the local government under the background of tight funds, either EMC or BT mode requires a different degree loaning, its own funds (such as raised funds or credit availability) ample ability to grab a single enterprise.

Statistics show that as of the end of the 3 quarter, Wan run technology, rectangular lighting held monetary funds were $200 million and $300 million.

Earlier reports said that the recent Jiangsu, Yunnan, Tianjin and other places to the government to support the investigation of the LED industry support policies in, hoping to combine the EMC model to learn the practice of the market for investment in Guangdong.

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