The LED sector faces rapid growth opportunities as the economy picks up

Reduced selling price and improved performance

LED online information from the Green Energy Business Division of TrendForce, a global market research organization, pointed out that the quotation range of lighting LED quotations in the first quarter was 5%-9%; the quotation price drop of backlight LED was about 3%-7%. Compared with the prices in the past off-season, the quotation decline in the first quarter was actually stable. At the same time, the rapid decline in the price of LED lighting products has brought about a global wave of replacement of LED light sources. Among them, bulbs and lamps have become the replacement light source types with the highest market demand due to their high consumer acceptance and strong replaceability. While prices are falling, the cost-effectiveness of products in various regions is also gradually improving. In addition, the formulation of LED-related standard policies and replacement bids have been launched in various regions, which has also promoted the development of the global LED lighting market.

As the peak season of the industry approaches, the global LED industry continues to make rapid progress this year with high prosperity. Whether it is international first-tier lighting giants such as Philips and Osram, or LED industry chain companies in South Korea, Taiwan and other places, they are optimistic about the outbreak of the LED lighting market and continue to increase investment. In particular, the LED market in Taiwan has always been regarded as a leading indicator of such products in mainland China. The stock prices of the above-mentioned related companies have hit new highs in a year this year.

Judging from yesterday's market performance, Leyard and Foshan Lighting both reached their daily limit around 10:45, while Sunshine Lighting kept up with the daily limit around 11:00, with Leyard being the most determined to close orders. After breaking through the 60-day moving average, Hongli Optoelectronics increased its volume to the daily limit. 33 stocks in the sector rose more than 1%.

Using opportunities for rapid growth

Researchers from Hongyuan Securities believe that the global LED application market is expected to maintain a rapid growth of more than 40% this year. On the one hand, benefiting from the continuous promotion of the global "ban on incandescent lamps" policy, the market share of energy-saving lamps and LED lamps will rapidly increase; on the other hand, as the cost of LED lamps decreases and efficiency increases, the price comparison between LEDs and energy-saving lamps has significantly improved. It is expected that the penetration rate of LEDs in the global lighting market will increase from the current 10% to 50% in 2016, and the market will usher in rapid growth opportunities.

The latest research report released by LED Online Information predicts that global LED lighting product shipments will increase by 68% this year compared with last year. Among them, the growth rate in North America is expected to reach 72%, and the growth rate of LED lighting product consumption in mainland China is expected to reach 86%. At the same time, with the support of policies, the progress of LED manufacturers in the mainland market will be significantly accelerated, which may open up a new situation in terms of industrial integration and technological progress. This means that the LED lighting market is expected to reach 100 billion in size this year.

Qilu Securities stated that the LED sector has long-term investment value. It is expected that the penetration rate of LED lighting will increase from more than 10% to about 50% from 2013 to 2016, driving the entire LED lighting industry chain into a high boom cycle. There are many LED listed companies in the secondary market, such as Sanan Optoelectronics, Sunshine Lighting, Foshan Lighting, Dehao Runda, Tianlong Optoelectronics, Huacan Optoelectronics, Jufei Optoelectronics, Hongli Optoelectronics, Ruifeng Optoelectronics and Unilumin Technology, etc. Investors can pay more attention.

Yesterday’s Strong Stocks in the Green Lighting Sector

Stock Name Increase Closing Price

Sunshine Lighting 10.03% 17.56 yuan
Leyard 10.00% 27.50 yuan

Hongli Optoelectronics 9.97% 13.79 yuan

Han’s Laser 9.97% 14.56 yuan

Foshan Lighting 9.96% 11.37 yuan

Lianjian Optoelectronics 8.49% 29.13 yuan

Huacan Optoelectronics 7.64% 20.00 yuan

Jufei Optoelectronics 7.33% 24.31 yuan

National Star Optoelectronics 6.79% 10.38 yuan

Unilumin Technology 4.75% 22.75 yuan