Light-emitting diode is called led for short. Made of compounds containing gallium (Ga), arsenic (As), phosphorus (P), nitrogen (N), etc.
When electrons recombine with holes, they can emit visible light, so they can be used to make light-emitting diodes. Used as an indicator light in circuits and instruments, or as a text or digital display. Gallium arsenide diodes emit red light, gallium phosphide diodes emit green light, silicon carbide diodes emit yellow light and gallium nitride diodes emit blue light. Because of its chemical properties, it can be divided into organic light-emitting diode and inorganic light-emitting diode LED.
Light emitting diode (LED) is a semiconductor element. At first, it was mostly used as indicator light, display LED board and so on. With the appearance of white led illuminated by LEVO LED, it is also used as lighting.
LED, known as the fourth generation lighting source or green light source, has the characteristics of energy saving, environmental protection, long service life and small size, and is widely used in various fields such as indication, display, decoration, backlight, general lighting, city night scene and so on. According to different functions, it can be divided into five categories: information display, signal lamp, car lamp, LCD backlight and general lighting.
Driven by factors such as policy escort and sales promotion, LED has become one of the investment hotspots in the capital market in recent years, among which Xinhaiyi and Fu Jeer have made outstanding achievements in science and technology. Because the fourth quarter is the peak consumption of LED lighting, TV and other products, the sales of the upstream component industry will also increase periodically. With the implementation of+10/October 1 China's policy of prohibiting the sale and import of incandescent lamps of 60 watts and above in June 65438, the road map for eliminating incandescent lamps in China has been started, and the popularity of LED lighting will continue to increase. According to industry insiders, the incandescent lamp replacement market alone will increase the demand for more than 654.38+0.2 billion light sources every year.
The LED market has broad prospects.
LED products are mainly used for backlight, color screen and indoor lighting. Backlight is the largest application market of LED at present, which has driven the rapid growth of LED industry in recent years. In the future, under the influence of falling product prices and a new round of global ban on incandescent lamps, indoor lighting will replace backlight as the fastest growing market segment of LED in the future. In addition, in recent years, driven by product upgrading factors such as small-pitch displays, the growth rate of LED products is also constantly improving, showing a steady growth trend. On the whole, the total demand for led will continue to grow in the future, and related companies have medium and long-term investment value.
At present, China is gradually becoming the global LED industry base. Statistics show that the total output value of China lighting industry in 20 13 years was 480 billion yuan. Among them, the export market is 35 billion US dollars, and the domestic market is more than 200 billion yuan. Compared with the incremental market of more than 200 billion yuan, the insiders believe that the lighting stock market formed in the past 30 years of reform and opening up will have several trillion yuan of market space. It is predicted that in the next 3-5 years, LED lighting will reach the peak of the industry output value, with a compound annual growth rate of 1 0,000%, and the industry output value is expected to reach one trillion yuan.
In addition, overseas emerging markets are bringing greater opportunities for domestic LED enterprises. In the first half of this year, the export value of LED lighting products in China was about US$ 4.35 billion. Among them, the BRICS countries accounted for about 440 million US dollars, a year-on-year increase of 350%. The rapid growth of overseas emerging markets will continue to benefit domestic LED manufacturers.
Mining LED Industry Chain from Three Angles
The LED industry chain can be divided into three parts: chip manufacturing, packaging and application. From the perspective of benefit, upstream chip manufacturing has undoubtedly become the most beneficial link. In the explosive growth of LED lighting industry, upstream epitaxy and chip performance are the most resilient. Because of the high technology content of chip manufacturing in LED industry chain. Therefore, enterprises with R&D technology, patented technology and scale advantages will benefit the most.
Xinhaiyi 20 1 1 officially entered the field of LED chip manufacturing. Thanks to the cooperation with Institute of Nanotechnology of China Academy of Sciences, the company is in a leading position in chip luminous efficiency, yield and other technical indicators. In the third quarter, the company's 20 MOCVD equipment is expected to reach production, and the revenue growth rate of LED products will continue to accelerate in the second half of the year. In addition, the company recently announced that it will expand the investment project of new nanocrystalline LED epitaxy and chip production capacity (Phase II). Establish a new generation of epitaxial wafers, chips and packaging production lines. In this regard, Kang Zhiyi, an analyst at Huatai Securities, predicts that the LED production capacity will double next year, and the company's MOCVD equipment output will reach 40 units by the end of the year.
As a listed platform under Fujian Institute of Material Structure, Chinese Academy of Sciences, Fu Jeer Science and Technology undertakes the scientific research achievements of major shareholders. Wanbang Optoelectronics is a comprehensive lighting enterprise integrating LED chip design, LED packaging and sales. In addition, recently stimulated by the news of the reorganization of the Chinese Academy of Sciences, the company was sought after by the secondary market funds. With the opening of the reform curtain, the company is expected to be injected into the assets of major shareholders in the future.
Due to the high standardization of LED packaging equipment and manufacturing process, the investment scale of manufacturers is generally small and the technical requirements are low, so there are many manufacturers in the packaging field. With the continuous development of packaging technology, packaging technology has developed from normal to vertical and flip-chip. Flip-chip extends from chip to packaging, and chip manufacturers will directly complete the packaging process in the future. The packaged market space will be compressed. Transformation will become the main focus of packaging enterprises.
Rectangular lighting is an LED packaging enterprise. In recent years, the company has expanded the application field of downstream lighting on this basis. It involves the research, development, production and sales of LED lighting source devices and LED lighting products. At present, the company has laid dealer channels in more than 30 provincial administrative regions across the country, and its sales network radiates across the country.
Zhongfa Technology is a manufacturer of semiconductor packaging molds and LED brackets. The operating income in the first half of this year was poor. Among them, LED bracket revenue decreased by 20.67% year-on-year. However, it is worth noting that the company's LED surface mount bracket research and development and industrialization project is expected to be completed in 20 15 years. After completion, the estimated production capacity is 40 billion stents/year. The average annual sales revenue is about10.50 billion yuan, and the average annual profit is expected to reach10.50 billion yuan.
With the outbreak of LED lighting applications in China and the promotion of brand service status, the added value of downstream applications and brand services will gradually increase. Among them, industry leaders with brand advantages, channel advantages and scale advantages will benefit the most.
Although Shiyida's original business is EMS, in recent years, the company has focused on cultivating its own brand business such as LED lighting. Recently, the pace of mergers and acquisitions of Shiyida continues. After the company invested 654.38+million yuan in Firefly Energy Saving, it also set up a subsidiary with Firefly Energy Saving Investment. Cooperation with fireflies in energy conservation will realize the complementarity of technical resources, brands and channel resources. In addition, a few days ago, the company also joined hands with Shenzhen Jiupai Capital Management Co., Ltd. to set up a special M&A fund. The company revealed that the future will mainly focus on industrial integration and mergers and acquisitions of led lighting.
Earnings continue to improve in the third quarter ——( 20 14 Analysis of Investment Hotspots in China LED Market)
Previously, due to technological progress and fierce competition in the industry, the gross profit margin of LED products has been in a downward trend. The gross profit margin is only 15% to 20%, which is lower than that of traditional lighting such as incandescent lamps by 20% to 30%. In the case of continued low gross profit margin, LED manufacturers have handed over beautiful transcripts this year.
There are three main reasons for the continuous improvement of performance. First, the downstream demand is growing rapidly, and the era of small profits but quick turnover in the LED industry is coming, so destocking is better. Therefore, the price of LED products tends to be stable. The data shows that the price of domestic LED bulbs equivalent to traditional 60W products rose slightly 1% in August. Second, large-scale production has also reduced the cost for enterprises, improved the capacity utilization rate and improved the profitability of LED manufacturers. Thirdly, with the improvement of the technical ability of domestic chip manufacturers, LED products gradually adopt chips from domestic manufacturers. According to statistics, in terms of sales volume, it is estimated that the market share of chips produced by mainland manufacturers has reached 80%.