LED lighting industry concentration gradually increased

In addition to the market for public lighting and commercial lighting, LED lighting has also opened up the market. With the outbreak of demand, leading companies in the A-share market will benefit.

Previously, after continuous large-scale investment from 2009 to 2011, China's LED industry has seen an overcapacity in the upstream segment, and LED chip prices have continued to decline, resulting in a significant decline in the gross margin and output value of chips and packaging. China has introduced a series of industry support policies, including the 12th Five-Year Plan for LED lighting, to promote the development of the domestic LED lighting industry. According to the plan, within the next three years, China's LED lighting industry will realize the localization of key equipment and important raw materials, and the degree of industrial concentration will gradually increase.

Among them, Hongli Optoelectronics started with the packaging technology, but the company continued to infiltrate into the downstream applications. The company penetrated into the general lighting field through the subsidiary company Laidiya. Guangzhou Foda signal penetrated into the automotive lighting field. A securities company pointed out that the highlight of the company’s performance was in automotive LED products. Its revenue from automotive lighting products increased by 65.20% in 2012. In the case of higher barriers in the automotive market, many automotive LED lamp patents of Fuda subsidiary make Hongli have excellent prospects in the field of automotive LED lighting.

In addition, the LED lighting project in the early stage of the sunshine lighting will also be put into production this year. Among them, the Xiamen base will achieve an output of 8.5 million LED bulbs per month at the end of this year, and Shangyu base will achieve 2 million LED bulbs per month by the end of this year. With the gradual release of production capacity, the company will reach 2.5 million LED bulbs per month in the second half of the year, with an output value of approximately 600 million yuan. In the future, the company will form an annual production capacity of about 80 million LED lamps. The business focus will shift from traditional energy-saving lamps to new LED lamps.