In 2016, the LED industry experienced continuous price increases, Pinyi Lighting and Ruigu Power collapsed into fierce competition, the international giant OSRAM sold Landefance, and GE Lighting also withdrew from the Chinese market. In the new year, the LED industry will face new opportunities and challenges. Recently, the vast majority of LED listed companies have disclosed the 2016 performance express, through the statistics of 32 LED listed companies’ performance report data, LED industry 5 major areas of characteristics are obvious.
LED packaging field
The data shows that the profitability of most packaging companies has improved to varying degrees. In terms of LED business alone, Mu Linsen’s operating income is as high as 5.520 billion yuan, and the net profit has also reached 473 million yuan. However, the contraction of the number of enterprises in the packaging field is more obvious, and the data shows that there will only be about 500 packaging companies left in 2020. The shrinkage of packaging enterprises will be more obvious than that of chip companies, and in the process of shrinking the number of enterprises in these two fields, the industry concentration is increasing. In 2017, Mu Linsen launched the first round of price increases, with the continuous expansion of LED downstream applications and the gradual increase in market penetration, the expansion of midstream packaging plants slowed down and the downstream application demand expanded, it is expected that this price increase will continue, but high value-added products will bring a certain amount of incremental space.
LED chip field
Industry leader Sanan Optoelectronics has not disclosed its financial report, but Sanan Optoelectronics has achieved an operating income of 4.486 billion yuan from January to September 2016, and the net profit attributable to the shareholders of listed companies has reached 1.496 billion yuan, and the leading position is still stable. From the perspective of revenue, Dehao Runda temporarily ranked first with 4.053 billion, Aoyang Shunchang with 1.989 billion, and HC Semitek and Qianzhao Optoelectronics with revenues of 1.582 billion and 1.15 billion respectively; However, the net profit of HC Semitek is as high as 267 million, and the net profit of Dehao Runda is only 0.30 billion. From the perspective of supply in Taiwan, the contraction of this industry is more obvious. Taking Taiwan Jingdian as an example, the cumulative production from 2015 to 2016 was reduced by 25%. Its MOCVD has dropped from 500 units to less than 400 units, and the decline is more obvious. From the perspective of the factory, the company announced the closure of a plant in Taiwan and the mainland, and the capacity contraction was more obvious. In addition, CRE’s announcement shows that the company’s high-power wafer production is reduced by 25%. From the perspective of domestic attacks, the withdrawal of enterprises is also more obvious. On the one hand, due to price cuts and environmental protection storms, a large number of small and medium-sized enterprises have withdrawn. According to statistics, at the end of 2016, a large number of LED enterprises in Guangdong were shut down and rectified. On the other hand, domestic leading enterprises have increased their ability to merge and acquire. Whether it is inside or outside the industrial chain, the entire merger and acquisition is accelerating.From the perspective of demand, it is expected that the effective production capacity of LED chips in 2017 will be less than 85 million pieces, while the demand will exceed 93 million pieces, and there will be a supply gap of about 8 million pieces, and the overall chip supply is in short supply.
LED lighting field,
LED has become the mainstream light source of lighting. Data show that last year, China’s LED lighting products domestic market penetration rate reached 42%, an increase of 10% year-on-year, of which the domestic LED lighting products output of about 8 billion, an increase of 33%; Domestic sales of about 3.8 billion pieces, an increase of 35% year-on-year. Stimulated by the huge market demand, major downstream LED lighting application enterprises are in a profitable state. Statistically, the net profit growth rate of Shellett and Kinwright has declined in the past year; And last year, OPPLE Lighting was just listed at the forefront of the industry with a revenue of 5.477 billion. In 2016, the overall output value of China’s semiconductor lighting industry reached 521.6 billion yuan, an increase of 22.8% over 2015. With the strict implementation of China’s “ban on white order”, the market penetration rate of LED lighting will be further improved, and if the company can follow the trend, the performance will be able to achieve greater growth.
LED display field
Currently, the largest application market is in the lighting field, followed by backlighting applications and displays. Among them, the scale of display applications has maintained a steady growth trend, especially with the continuous maturity of small-pitch LED display technology, LED display applications will gradually move from outdoor oversized display to indoor applications. The rapid expansion of application areas has further increased the proportion of LED displays in the entire downstream application industry chain. In the past, although the first-line brand enterprises represented by listed companies continued to exert efforts in production lines, channels and brand building, the pattern of the industry dominated by small and medium-sized enterprises is still obvious, and the annual LED display main business revenue of more than 1 billion yuan does not exceed 5, and the revenue of most enterprises is below 100 million yuan. Leyard, Power Color, Lianjian Optoelectronics, Zhouming Technology, Absen, Lehman and Alto Electronics are the seven companies with the strongest strength in the field of LED display applications. Judging from the performance reports of the seven companies, Leyard is still thriving, with revenue reaching 4.376 billion; Lianjian Optoelectronics, Zhouming Technology and Absen followed, with revenue of more than 1 billion, becoming the most powerful competitor of Leyard; Lehman shares and Alto Electronics revenue is relatively weak.
LED driver field
The number of LED drive companies that have successfully IPO is not much, at present, only Moso Power and Infineon have successfully landed on the capital market on the ChiNext board, and Igor Electric is still queuing in the small and medium-sized board. As of today, both Infinet and Moso Power have disclosed their 2016 performance reports. From the data point of view, in 2016, the operating income of Infineon and Moso Power was 656 million and 1.283 billion, and the net profit growth rate of the two companies was 23.82% and 86.28% respectively, and the company urgently needed to find new profit points, such as the two mainstream trends of the current driving power supply, light engine and intelligence.
Judging from the performance data of a number of LED listed companies, most LED companies are making profits, and profitability continues to increase, and the signal of the LED industry picking up is getting stronger and stronger. At the same time, the industry “oligarchy” model is more obvious, in all fields, there are “super enterprises”. The upstream Sanan Optoelectronics, the middle reaches of Mulinsen, and the downstream applications of OPPLE Lighting and Leyard are all strong in their respective fields. From the data point of view, the concentration of the LED industry has been further strengthened, and the living space of small and medium-sized enterprises has become more and more narrow, so small and medium-sized enterprises need to combine their own characteristics and exert their own advantages to be more focused.