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Analysis of the status quo of my country's LED industry in 2016

TIME:2016-7-5 1:18:33  PV:1152

Leaving in June, coming in July, standing at the node in the middle of the year, let's take a look at the impressive performance of the industry in the first half of the year. The following is the analysis of the status quo of my country's LED industry in 2016:

Analysis of the status quo of my country's LED industry in 2016

The outbreak of cross-border transformation?

  Looking back on the first half of the year, if there is any key word, then "cross-border" cannot be ignored, not only LED, cross-border transformation seems to have become a "popular" trend, and waves of news hit people a little dizzying. It is not just this year that enterprises set foot in other fields on the basis of the main LED business, and it has become more and more common in the past two years.

  For example, Liantronics has flourished in the field of digital media. Through a series of actions such as the establishment of linkage culture, the acquisition of time-sharing media, Youtuo public relations, precise focus, and Esdash, it is trying to expand the "digital media group". Leyard went deep into the cultural media business and acquired companies such as Jinda Lighting, Internet Yida, Lifeng Culture, Jinlixiang and Pinneng Optoelectronics. Ledman Optoelectronics implements the dual main business development strategy of "LED + Sports". In 2015, the Chinese securities abbreviation of Ledman Optoelectronics was changed to "Lehman Shares". Kingsun entered into education and acquired 100% equity of Guangzhou Longwen. Hongli Optoelectronics is actively cultivating the second main business, striving to create a dual main business form of "LED + Internet of Vehicles", and plans to change the company name from "Guangzhou Hongli Optoelectronics Co., Ltd." to "Hongli Zhihui Group Co., Ltd. Company", the abbreviation of the company's securities was changed from "Hongli Optoelectronics" to "Hongli Zhihui". In addition, Wanrun Technology crosses the Internet advertising media industry, laying out the entire digital marketing industry chain, and Aoto Electronics focuses on financial electronics...

  Under the influence of factors such as the macro economy and the sluggish growth of the semiconductor lighting industry, enterprises must consider improving sustainable profitability and need to explore new profit growth points. One of the ways of new profit growth point. There are many cross-border enterprises, and businesses other than LED contribute a lot to the company.

  Some analysts pointed out that for enterprises, whether it is cross-border or transformation, as long as there is good development, it is positive for enterprises. For some well-funded companies, cross-border is a good way of development. However, the proportion of LED may be weakened when the layout of dual or multiple main businesses is heavy. In the end, the enterprise transforms, LED is no longer the main business, and the company no longer focuses on the production and manufacturing of LED products. Of course, this possibility exists, but at present, whether LED can be the main business in the future is still unknown, and we can only wait and see.

  In the cross-border and multi-main business layout, many companies are mainly LED display companies, and the cultural media and sports industries are the directions chosen by many companies. Some insiders said that most of these companies have good profits, and many of them are listed companies with strong capital operation capabilities. Many of their acquisition targets are promising but currently not profitable enough. After the acquisition, the two sides are equivalent to complement each other. Compared with display-oriented companies, many lighting listed companies are established lighting companies, while there are relatively few emerging LED lighting listed companies, so the difficulties will be greater and the opportunities will be less. "After listing, it will be relatively easy to cross borders."

  Of course, regardless of whether it is listed or not, whether it is powerful or not, cross-border transformation is not a simple matter, and it is not something that can be crossed if you want to. A few years ago, with regard to the issue of cross-border transformation, some LED company executives said that the temptation of cross-border transformation does exist, but the risk of entering another field is also obvious. The management level of the enterprise, the risk resistance ability, and the new field The degree of grasp of the market is a very big test, and you will not get involved easily. Today, although the number of cross-border cases continues to increase, the risks have not diminished. There are risks in cross-border cases, and actions need to be cautious.

"Bigs" collectively "make moves"

  Naturally, one cannot ignore the actions of the giants. In the first half of this year, as if they had made an appointment, several giants had big news. Among them, Philips Lighting, which was spun off from Philips, was listed on the Amsterdam Stock Exchange in the Netherlands on May 27 this year. The sale of Philips Lighting was finally settled. From the planned sale to the final listing, there were twists and turns and reversals. Of course, the fact that Philips Lighting will be "independent" has long been known in the industry. As early as 2014, Philips announced that it planned to set up its lighting business as Philips Lighting Company, merging the consumer goods and pharmaceutical departments into a company with a valuation of 15 billion yuan. Philips medical technology company in the euro, in order to allow the company to focus on healthcare and consumer electronics, Philips also gradually divested of the lighting business, but never thought that the subsequent process would be so ups and downs.

  As for the divestiture of Philips’ lighting business, many people in the industry believe that the contribution of the lighting business to Philips is declining, and Philips’ focus is on the more lucrative medical and health field. It's all a win-win situation.

  Osram approved the divestiture of its LED lighting division last year, and decided to reorganize its divested LED lighting business into a company named "Ledvance". Osram announced in May this year that Ledvance will be officially split on July 1, 2016. . Ledvance's product portfolio includes standardized consumer lighting, traditional lighting and modern LED lamps. The new business will also provide connected smart lighting solutions for smart buildings and homes. Osram said that the divestiture of the LED lighting business will enable Ledvance to operate independently with a more streamlined organization capable of responding to rapid market changes and individual customer needs.

  GE has also made substantial adjustments in the past two years, refocusing on industry as its main business, and divesting its financial business. This year, it even sold its home appliance business to Haier Group for US$5.4 billion. Established Current, a new company that combines General Electric's LED, solar energy, energy storage and electric vehicle businesses with its Predix platform, and is actively entering the industrial Internet industry. In April this year, Current, a subsidiary of GE, acquired the Melbourne-based The emerging building automation company DaintreeNetworks, the company is the Industrial Internet

  In addition to lighting companies, in the equipment and materials segment where mergers and acquisitions rarely occur, the news from the equipment company Aixian has attracted people's attention. In March this year, Aixtron officially announced the sale of equity, and welcomes investment companies to bid. In May, China Chip Investment Fund formally made an acquisition offer to Aixtron, willing to acquire Aixtron at a price of 6 euros per share and a total price of 676 million euros (about 5 billion yuan). There is a view that this acquisition will bring competitive pressure to my country's MOCVD equipment companies, and it will be difficult to transfer technology in the short term. However, the acquisition of Aixtron by Chinese capital will help make up for the shortcomings of the domestic equipment industry and rapidly develop the compound semiconductor industry. The acquisition has not yet been completed and is expected to be completed in the second half of the year.

  With the development and changes of the semiconductor lighting industry, the giants have their own plans and considerations, and the power of the industry is also quietly changing. In this change, the power from Chinese enterprises and capital cannot be ignored.

Concentration of resources, integration continues

  "Overall, resources are showing a trend of concentration, whether it is the upstream link or the midstream link. With the concentration of resources, once the epitaxial chip packaging pattern is determined and the location is arranged, it will be difficult to change. It is difficult to rank second. Beyond the first." An industry insider said.

  The topic of integration and mergers and acquisitions has become a "cliché", and it is still going on today. Some small factories in the middle and upper reaches have withdrawn one after another, but some enterprises are still increasing their prices. Among them, the chip company Huacan Optoelectronics has continued to expand production capacity and accelerate industrial concentration through acquisitions, equity participation, and strong cooperation. Acquisition of 100% equity of Ruijing Optoelectronics, acquisition of Blue Crystal Technology, participation in Benewing Photonics, Mulinsen and HC Semitek signed a cooperation agreement of 1.5 billion yuan, etc.

  Mulinsen, which was listed on the Shenzhen Stock Exchange last year, has been constantly moving, increasing its main LED business, increasing its capital in a wholly-owned subsidiary, participating in the development of 10.91% equity of Crystal Lighting (Xiamen), planning to acquire 80% equity of Super Times Lighting for 315 million yuan, and participating in the acquisition of OSRAM Licht AG Lighting business assets ... a range of measures, the performance was outstanding.

  "In the past two years, local companies have made great progress. For example, companies such as Mulinsen have participated in international mergers and acquisitions, and they have begun to have a global perspective." Regarding the performance of domestic companies, some insiders said so.

  The downstream link is also gradually facing the trend of concentration, but the downstream application has changed a lot, and the transformation speed is relatively faster. "It's not so easy to transform, unlike the midstream and upstream links due to limitations in technology and equipment." Although the competition in the application field is fierce, some people in the industry believe that companies can do something in marketing. "Due to different locations and different countries, customer needs are also different. Especially in terms of marketing, we can do some special marketing according to the needs of different regions. For example, some customers pursue high quality, while others value price. An e-commerce platform that can sell products to other regions and maintain some good profit margins.”

There are opportunities to find market segments

  Judging from the situation of exhibition forums such as Guangya Exhibition, subdivided fields including intelligent lighting, plant lighting, and UV LED have attracted much attention. "Market segments are constantly developing, requirements are constantly changing, and technology is also improving. For example, in the application of UV in counterfeit inspection, the authenticity of banknote inspection is different from others, so there are still many opportunities. Things that can be tapped in market segments There are many more.” An insider said.

  Optimistic about subdivided applications, many companies are laying out. For example, Hongli Optoelectronics has launched all-inorganic UV LEDs, automotive LEDs, and other products. LG Innotek, Tiandian Optoelectronics, etc. also have UV LED products. LED products are aimed at application markets such as curing and nail art. Seoul Semiconductor and Cree are also actively introducing into the automotive market. Lextar Electronics, whose lighting proportion is increasing, has also taken action in subdivided fields such as high-speed rail and automotive lighting applications.

  During this year's Taipei Photoelectric Week, Huang Daoheng, assistant manager of the Lighting Business Division of Lextar Electronics' marketing business group, said that LED lighting is definitely the development direction of future lighting. Lextar Electronics' lighting sector has been growing in the past two years. Try to develop in the direction of high added value, and focus on some lighting products with good profits and high added value. After the third quarter, it will slowly adjust, hoping to increase the profit of the lighting part.

  However, although the segmented market has received a lot of attention, it is still in the cultivation and development period, and the prospect is attractive but it is not easy. Each segment also has its own problems that need to be solved. For example, there are many people involved in smart lighting, and the direction of the pattern is still unclear, and everything from products to standards is still being explored. There is no doubt about the application prospect of LED in the field of agricultural lighting. Plant lighting is a relatively mature part of the application of agricultural lighting. Although there are many applications, there are still many problems such as price, demand satisfaction, and technology improvement that need to be solved. The application of automotive lighting is not something you can enter if you want to. For more relevant industry analysis, please refer to the LED Industry Market Research and Analysis Report released by China Report Hall.