The LED industry is pick up signs early expansion card

After the loss of a large area of the industry, China's LED industry has finally ushered in signs of warmer.

At present, there is a certain quality of the chip has been packaged 10% price. "In September 6th, superior product wealth finance research institute, said Cheng Hongwei, while the downstream application of product price increases of about 5%.

According to investment adviser researcher Zou Mingxiao said, the LED package factory price is only related to the display package, although nothing to do with the lighting package, but the downstream LED industry chain is also brewing prices. After two years of low-cost market, LED price rebound trend has been very obvious. Relative to the previous downturn in the market price, LED prices rose by nearly 10%. However, the current price increase is not comprehensive.

After experiencing the industry downturn in 2015, this round of price increases is the beginning of a reasonable range of product prices return to the industry, but after the industry will be fully warmed up need to observe. In this regard, another anonymous industry insiders believe that the current industry order was re established, and the future of the market, the demand for LED products end there is a huge space for development, through the adjustment, the industry will return to reason.

Starting point

Prior to the LED companies have experienced a long downturn.

Since 2010, China's LED industry has entered a period of rapid development. At that time the market access threshold is very low. "A LED enterprise for the memories, hundreds of thousands of dollars in general can enter into the industry, and then Chinese LED industry has just started, a lot of good prospects to attract capital influx, the rapid growth of the industry scale. At that time, the size of the domestic enterprises are not too large, a new industry into the enterprise may be in the capital of help, about half a year may overtake the domestic ranking of the industry.

In the early development of the industry, products with low quality, serious homogenization of products and technical content is not high malpractice appears in the industry, and the competition between enterprises is often the most common way of price competition, in this situation, the price of domestic LED products began to decline.

In 2013, LED industry product prices fell as high as 30% or so, in 2012 continued to decline by about 20%, while in 2015, continued to decline by about 5%. "Remember the magnificent history, the past three years, despite the decline in the LED industry has narrowed, but in 2015 the price reached near each enterprise cost line, many enterprises in the long run below the cost line, including many large LED manufacturers are cheap sale. Under this situation, LED industry stepped into the bottom of the industry.

2015 data from the listed company performance, the largest domestic LED enterprises, three optical sales income of 4 billion 858 million yuan, operating profit of 1 billion 505 million yuan, attributable to shareholders of listed companies net profit of 1 billion 695 million yuan, growth slowed.

While the country ranked second in the number of LED chip production company can increase over the same period last year, an increase of 65.52%, an increase of 71.63%. The company achieved net profit of -9596.39 million, a decline of 205.56%, its gross margin was only about $16.75%.

Under this kind of unreasonable low price competition, the LED industry's product value and the enterprise value are underestimated. "The industry sources said, so overwhelmed by the price correction is a reasonable correction, while the industry's overall gross margin to rise to around 30%, to match the current LED investment return rate of the enterprise and the current market value.

The current price is a time card.

Since 2012, the state issued "China phasing out incandescent roadmap", since October 1st of that year China banned the import and sale of 60 watts and above ordinary incandescent lighting; by October 1, 2016, China will fully stop and disable the incandescent lamp.

"That is to say, from the beginning of October 1st this year, the national production of textile enterprises will be a total ban on the production and sale of light. Cheng Hongwei said, coupled with the previous industry has been running at a low point, combined with this time node, the price of a normal market rhythm.

10% or so in the industry to understand the return is a reasonable level of return. The industry also said that the current market, the demand for LED products is still growing, and from the LED industry investment situation, price and current business investment still does not match, this is a reasonable prices.

"This is a tentative price hike. Cheng Hongwei explained that at present, the industry's capacity utilization has rebounded to more than 90%. The current price is the main industry of large manufacturers to raise prices triggered, but the rate of price increase is not large, relatively conservative, and now the price is only to allow manufacturers to rise slightly to cost close to the line, really pick up distance industry also need time.

Specifically, although the LED industry has experienced the industry downturn in 2015, but the entire industry layout, industry concentration is not high enough. Cheng Hongwei said, after a lot of enterprises rely on the relevant state subsidies to alleviate losses, now the cancellation of subsidies is not a long time, some enterprises are still temporary support within the scope of the market's capacity to speed is not too fast, therefore, high gains are likely to bring the productivity growth.

Early expansion card

In fact, after China's LED industry, although experienced a round of excess capacity barbaric growth era, but the market, the demand for incandescent has been growing.

The industry pointed out that at present, China's lighting industry replacement rate has risen to about 30%, while in the