Consolidation Mergers and Acquisitions China LED Industry Perhapse Market Blowout
Jun Duo Li, Vision Photoelectric close down, the LED industry out related business money is tight, difficult news. Atmosphere in this kind of industry, Taiwan LED epitaxy chips bibcock Jing Dian high-profile announced to widely gallium control of nt $4 billion. The personage inside course of study points out, the LED industry has entered the stage of merger and acquisition integration is the main melody, and this period may last 2 to 3 years. On the one hand, public lighting, commercial lighting use gradually accelerated, laid the foundation of market; Consolidation for superior enterprises, on the other hand, is not bad, can use consolidation occupy the bigger market. Reporter visited some LEDs listed companies get information fairly optimistic: three photoelectric, bdo embellish of Ann is to accelerate the whole industry chain layout, and packaging companies such as the star power, hong optoelec is applied business extends to the downstream, frequently on the photoelectric, Shelley is by focusing on the application of products, trying to meet the upcoming market.
Consolidation continued Since last year, both in the international market and domestic market, many LED companies operating difficulties, such as vision photoelectric, Jun Duo Li made in much of failure and consolidation also happen from time to tome, such as crystal electricity purchase widely gallium. The personage inside course of study points out that such consolidation is likely to last 2 to 3 years. Looked from the whole industry, due to the sluggish economic environment, many LED companies face the pressure of the decline in profitability. Star power in the kingdom of encapsulation and LED application products, epitaxy chip of the LED industry, encapsulation and lighting application in phase capacity release, bound to lead to industry raw material prices at each end non-market rational fluctuations occur, product price is expected to continue to fall, the price war is the market norm. Orient securities analyst he expounds the similar point of view.He said in a report, in the near future LED downstream packaging and application of enterprise quantity, small size, less money, under the environment of economic recession could not continue as a going concern.This industry has laid a solid foundation for industry consolidation.He analysis of recent crystal electricity acquisition of widely gallium is a landmark event, portend the future LED industry has entered into the phase of elimination overall integration.
From the perspective of the competition in the market a lot of LED enterprises qualification and the problem of insufficient strength. Bdo, deputy general manager Deng Fei, such as in public lighting lamps order competition, many small businesses in the capacity of only 1000-2000, and only just need to change this year of about 30000 Zhuhai street lamp, 60000 light next year, in the tender process considering the technical certification, scale of street lamp products supply, price factors such as cost and financial strength, small and medium-sized enterprise is difficult to have the opportunity to competition with large enterprises. He said: "the continued funding and operating pressure, many enterprises will face out, which will help to form a large enterprise." Consolidation is not only embodied in the horizontal expansion, the vertical integration of upstream and downstream integration has gradually become the significant characteristics of the LED industry.As early as in 2011, for example, CREE (CREE) announced acquisition of lighting manufacturers RuudLighting CREE through the move will be extended to efficient market LED lighting applications.And this kind of case in LED industry. "General rule is that when a new industry development to a certain period, all will enter a time period of integration, the integration is beneficial to the long-term health of the industry development."An LED industry experts said the future industry will form one or two leading enterprises.
Enterprise broken market Relevant enterprises points out, head of integration for the industry is not a bad thing, will help the advantage enterprises to gain more market share. At the same time, the policy to promote, product prices drop, public lighting and commercial lighting applications such as the market gradually open, for the LED enterprise development has laid a broad market space. Orient securities Zhou Jun pointed out that the current domestic LED upstream pattern gradually clear, three Ann photoelectric, bdo embellish reached for the first tier, the rest is located in the second tier, unlisted companies about 90, most of the smaller, the future must become subject of m&a integration. It is reported that three photoelectric, bdo, LED advantages such as enterprise has competitive advantage more than in the upstream, the company the whole industrial chain pattern gradually formed. Three Ann photoelectric is one of the leading domestic LED enterprises, LED industry chain covering the upstream and downstream application products chip.Company in the first half of 2012 to achieve revenue of 2012 yuan, up 90.53% from a year earlier, attributable to shareholders of listed companies net profit of 466 million yuan, up 1.55% from a year earlier, after implementation buckle the net profit of 304 million yuan, up 94% from a year earlier.Denver sinolink securities pointed out that as wuhu base capacity gradually released, at present, the company total number of MOCVD reaches producing has reached 100 units, in the second half of the company still has 30 MOCVD will open in succession, is expected to further enhance income growth in the second half of the company.
Another important domestic LED industry bibcock bdo, for the condition of the company after more than three years of construction, the transformation of the effect of the LED industry has gradually been reflected, the company has implemented in wuhu, dalian and yangzhou, industry layout, and built from LED epitaxy chip to packaging, to the lamps and lanterns and display, vertical integration pattern.Income of more than 900 million yuan, in 2011 the company LED product accounted for about 3 into a total, and the company expects to achieve 5 into proportion.Bdo, is the present domestic LED enterprises to implement in the 4 inches LED epitaxy chip scale production of the company, in the first half of this year the company MOCVD80, wuhu, yangzhou base has been the arrival of the goods before the end of the year will be expected to more than 40 sets of production, become the domestic LED epitaxy chip on behalf of the enterprise of the latest technology. Company deputy general manager Deng Fei is introduced: "bdo, already make a complete whole industry chain model, which will effectively reduce the product cost.", he says, many companies buy chips from the chip manufacturers, to do encapsulation assembly house, after applying terminal sold products, if in each link is roughly 20% gross margin calculation, you need to increase the cost a lot, while the whole industry chain enterprises can avoid the cost of the intermediate links, so as to have a strong market competitiveness. In addition to the vertical integration of enterprises, the past is engaged in the packaging companies are also trying to expand, take market in succession.Such as the star of electricity to the upstream and downstream of the breakthrough, is mainly engaged in packaging hon, photoelectric products, such as the use of the downstream application.Hon optoelec high-rise once said in a communication, pioneered in the country in guangdong province LED promotion plan, and guangzhou is leading the pilot cities in guangdong province, guangzhou LED enterprises, and larger scale, quality good main is hong photoelectric, guangdong EMC launch is expected to drive the rapid development of the company in the field of application of the product. On the channel capacity more frequently on the photoelectric, Shelley, etc. Some companies, mainly focus on the application of the product in the market, trying to differentiate an outbreak of the first mode to capture the market of the act.Snow Wright director XianShuZhong is pointed out that each enterprise's development path is different, but have a bit more sure, is expected to usher in LED lighting market over the next two years of full capacity, relative advantage enterprises can obtain good returns.