The LED industry is in short supply and continues to prosper for at least 2-3 years.

The domestic LED industry 2016 annual report and the 2017 first quarter report have been released, and the overall results have been reported. Among the 2017 first quarterly reports, 40 of the 43 LED listed companies saw a year-on-year increase in revenue, and 35 LED companies reported a net profit increase of 1 year in the first quarter, with 27 listed companies whose net profit increased by more than 30%. The proportion is over 60%.

LED industry core financial data improved significantly, verifying LED industry trends are solid and reliable

From the LED industry's 2016 and 2017 first quarter reports, the core financial indicators of listed companies all showed a significant improvement trend. The core indicators include ROE, revenue scale and growth rate, net profit and growth rate, gross profit margin, net profit and Operating cash flow, etc. LED industry trends have been solid and solid financial data as a verification, more firmly convinced the industry's confidence in the LED industry trends.

The LED industry is in short supply and is expected to last at least 2-3 years.

Recently, Guoxin Securities has extensively exchanged research and research on the LED industry chain and continued to verify the supply and demand of the LED industry. International giants such as Osram also said that LED chip supply is in short supply, while LED chip makers Jingdian, Sanan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang and Dehao Runda all said that demand for strong demand is in short supply. The main reason is that the MOCVD machine is being phased out in 2010-2011, and the number of models accounts for about 1/3 of the total. It is estimated that the annual elimination in the next 2-3 years will account for 5% to 10% of the current total capacity, about 5 million- 10 million pieces. With the increase of downstream lighting demand by more than 20% and the shortage of small-spacing demand, the annual demand for new LED chips will increase by 10 million. According to statistics, the total effective capacity at the end of 2017 will be about 83.28 million pieces, and the demand will exceed 92.35 million pieces, which will continue to be in short supply in the next 2-3 years.

LED industry data is improving, reflecting the general trend of global LED manufacturing shifting to China

The general trend of global LED manufacturing transfer to China has been unquestionable. China's electronics industry has fully possessed excellent process control and cost management capabilities over the years. At the same time, engineers' dividends are gradually being released, prompting Chinese companies to develop and own more. The international advanced technology of multi-independent intellectual property rights will slow down with the bottleneck of technological advancement of international manufacturers. Chinese enterprises will make full use of various advantages such as national policies, industrial capital and engineer dividends to achieve post-production and ultimately defeat traditional international The factory has become a leader in the development of the industry.


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