2013 LED industry will continue to warm up

On June 5th, Sanan Optoelectronics (600703, closing price of 20.44 yuan) announced that its wholly-owned subsidiary purchased US Lumen 100% equity for US$22 million.

On June 4, Australian Ocean Shunchang (002245, closing price of 6.75 yuan) also announced that it will raise 500 million yuan to raise LED projects. On the same day, Qixi Holdings (002027, the closing price of 4.04) also announced its entry into LED applications and other fields. In just two days, three companies announced the expansion of LED projects. The reporter noted that since the beginning of this year, it has announced more than the number of LED investment projects.

In the secondary market, the recent performance of the LED sector has attracted attention and many individual stocks have continued to rise. According to industry sources, the LED industry may recover this year.

LED company aggressively expands

In February of this year, a scheduled increase plan for Silan Micro (600460, closing price of 6.20 yuan) opened the curtain for LED company expansion financing. The company plans to raise total funds not to exceed 880 million yuan to increase the investment in the first phase of the Chengdu Shilan project and accelerate the development of lighting LED chip business and power module, power device business.

The real protagonist is the chip giant San'an Optoelectronics. The company's recent expansion has been frequent. First, a plan to increase revenue by RMB 3.3 billion was mainly used to implement the Wuhu Optoelectronics Industrialization (Phase II) project. The voice just dropped, and established a LED application product company with Hao Wei shares, and recently shot US$22 million to bring the US lumens into the bag.

Australian Ocean Shunchang is not to be outdone, raising 500 million yuan to LED projects. It is worth mentioning that Qixi Holdings, which has a weak growth in traditional computer business and no major breakthrough in smart phone business, announced on June 4 that it plans to establish Guangzhou Qixi Optoelectronics Co., Ltd. to enter LED application products and other fields.

For a time, LED seems to be the cake that everyone grabs. The reporter noticed that some analysts believe that such a scene can not help but recall that from 2010 to 2012, under the background of multi-subsidies and low thresholds, domestic LED production capacity has expanded significantly, but afterwards, it has fallen into a quagmire of overcapacity due to weak downstream applications. At present, on the one hand, LED companies continue to close down and new capital inputs are put on one side. Will the recovery of this industry continue, or will we repeat the history of overcapacity?

Industry companies are optimistic about orders

The reporter noted that for the trend of the LED industry, a brokerage researcher is more optimistic, that LED's current strong performance comes from the first quarter of LED lighting rise, the current major manufacturers are pushing, like Osram, Philips, but because of price issues, Advancing still needs a process. In addition, after a few years of shuffling, there have been too many companies investing heavily in MOCVD, a heavy asset, in the past year or two. Zhang Xiaofei, director of the Gaogong LED Research Institute, also believes that the LED warming will continue, at least until the third quarter and the fourth quarter.

"From a large number of investigations, there is no doubt that the pick-up is back, but early-stage stocks have risen sharply because it is an electronic stock. In April or so, the LED is considered a valuation base. The mainstream funds certainly want to configure high-security varieties." Industry sources told reporters, "This time at least in terms of demand can sustain LED warming continues."

However, the above industry sources stated that the reshuffling of packaging companies will certainly occur, and that there will be excess capacity afterwards, but it will not be as serious as two years. The size and chip performance requirements will make it difficult for some small factories to survive.

It is worth mentioning that many companies are also optimistic about the prospects of the industry. National Star Optoelectronics (002449, closing price of 7.66 yuan) told reporters that the securities office, "This year should maintain a good state, the order is saturated in the second quarter." Another Silan micro-certified Dai Ma Liang also told reporters: "The company At present, orders are still available. From the perspective of the whole trend, LED applications are not the same, and now the LED lighting field has risen.”

However, some analysts reminded that although many LED lighting fixtures are put on the shelf, the sales cycle and the future sales of substantial results remains to be seen.