LED industry chain ushered in a new round of price increases, many LED companies benefit

Following the high-profile price adjustment of Taiwan's crystal TV in the early stage, on August 25th, the mainland LED faucet announced that it would increase the price of small and medium-sized chips by 10%. Subsequently, RGB lamp beads such as Mulinsen and Guoxing Optoelectronics also had corresponding price increases, which was boosted by the recent LED sector. Big rise. Following the high-profile price adjustment of Taiwan's crystal TV in the early stage, on August 25th, the mainland LED faucet announced that it would increase the price of small and medium-sized chips by 10%. Subsequently, RGB lamp beads such as Mulinsen and Guoxing Optoelectronics also had corresponding price increases, which was boosted by the recent LED sector. Big rise. Multi-factors to promote LED price hikes In March, Mulinsen, Jingtai and other packaging companies have raised prices for some products. By the time Crystal Power cut production by 25% in May, the price rose 15%. Although Sanan Optoelectronics also has some products with small price increases, the overall performance is relatively limited. In August, the prices of chip companies such as Sanan increased in different degrees. Among them, the price of small and medium-sized products of Sanan Optoelectronics rose by 10%. Huacan Optoelectronics also adjusted the products with lower profits. Mu Linsen and Guo Xing Optoelectronics The display uses RGB lamp beads to raise prices, and the increase is about 5%. Downstream demand is the key to the success of price increases. On the one hand, the market demand for LED small pitch is strong, and the demand for LED lamp beads per unit area is rapidly increasing. Secondly, the penetration rate of overseas lighting is rapidly increasing, and the country is banned from importing and selling 15W on October 1, 2016. Above incandescent lamps, once again, the emergence of special LED applications, including red, ultraviolet light, automotive lighting, etc. Finally, the industry seasonal season also laid the foundation for the current price increase. The cost increase is the most direct incentive for price increases. In the early stage, after the fierce competition, the materials all reached the bottom of the market, including the substrate increased by more than 30% in June, the gold increased by more than 27% compared with the beginning of the year, and the labor cost increased. The improvement of the industry's competitive structure is the cornerstone of the price increase. The LED industry has been fiercely competitive in the past few years, and the industry has experienced significant production capacity. In the first half of the year, the crystal power itself has also reduced production to boost prices, and the industry's leading concentration has increased significantly. According to the industry chain research, the follow-up industry price increase cycle is expected to continue. The proportion of Chinese companies rose from 5% in 2009 to 25% in 2015. After a sharp adjustment in 2015, the price pressure in 2016 has slowed down, and the price decline has been around 15-20 percentage points, which is obviously better than last year and is at a normal level. Small-pitch LED demand is strong, RGB products lead the price increase display application accounted for 12% of the total LED application. LED market applications include general lighting, backlight, landscape lighting, display, signal and display, automotive lighting, etc., of which 45% of general lighting The share is still the largest application market, with a display screen accounting for about 12%, showing a rapid growth trend. The pitch of the lamp beads is reduced, and the demand for the lamp bead is greatly increased. The pitch of the small-pitch LED display is most obvious, and the upgrade is accelerated. In 2015, the median P2.0 was around, which was 56% higher than the median P2.5 in 2014. The lower, even lower than P1.0 products are also emerging, and the lamp spacing will be further reduced. Outdoor and other long-distance display products also have obvious size reduction. It is expected that P6.0 products will be popularized one after another, and their lamp bead demand is increased by 178% compared with P1.0 products. The demand for small-pitch market is strong, and the overseas market has also begun to grow rapidly during the year. Domestic display companies have maintained rapid growth, and the rapid integration of industry-operated enterprises has led to a significant improvement in the domestic high-quality enterprise market. Small-pitch products are more technically difficult and have better market concentration. The domestic market took the lead in achieving breakthroughs in market applications such as military industry and corporate government, and gradually expanded to markets such as surveillance and TV news. The future cost will further decline, and the effect of DLP and LCD replacement will become more apparent. During the year, domestic excellent small-pitch enterprises including Liard and Chau Ming Technology actively expanded overseas markets, while overseas brands such as Samsung, Sony, Mitsubishi and NEC also promoted small-pitch products in an all-round way. Double-tube products and overseas small-pitch products showed rapid growth. . The increase in demand is an important support for the price increase of small pitch chips and lamp beads. Supply side chips, packaging and other technical requirements are high, relatively concentrated supply, crystal power, Sanan and other major chip suppliers, Yiguang, Guoxing Optoelectronics, Mulinsen is the main lamp bead packaging company, the first to start price increases. LED display industry chain, especially the small-pitch product industry chain will benefit significantly, in which chip and packaging companies benefit from higher prices, LED display will benefit the industry boom, corresponding companies such as Sanan Optoelectronics, Huacan, Ganzhao, Guoxing Optoelectronics LED chips and packaging companies such as Mulinsen, and LED small-pitch enterprises such as Zhouming Technology, Liard and Abisen. White light products are also expected to have room for price increases. Lighting supply and demand continue to improve. The share of domestic high-quality enterprises has increased rapidly. The proportion of Chinese companies has increased from 5% in 2009 to 25% in 2015. The global market share of high-quality companies such as Sunshine Lighting is expected to reach nearly 3 percentage points in 2016. The integration of domestic LED companies is more obvious. Among them, the number of LED companies has dropped from more than 20,000 in 2014 to 16,000, and the adjustment will be expected to reach 10,000 by 2018. LED entered the stage of industry integration, especially in 2015. In 2015, Philips opened the price cut of LED products. Then, lighting giants such as Mulinsen, Foshan Lighting and Op Lighting also joined in, and the price dropped more than 30% during the year, and the industry adjustment accelerated. The giants also ushered in a drastic adjustment. Osram sold Foshan Lighting shares, Philips shut down the factory, and actively sought new buyers, and sold them to Feile Audio. According to media reports, GE Lighting CEO announced in internal mail that from November 30th, GE Lighting will terminate all direct commercial activities in Asia and Latin America, and recently announced this month that it will close its Bridgeville. Rumors of the light bulb factory. In addition, according to the “China Roadmap for Eliminating Incandescent Lamps (Draft for Comment)” issued by the National Development and Reform Commission, import and sale of 15 watts and above of ordinary lighting incandescent lamps is prohibited from October 1, 2016. This is the roadmap for eliminating incandescent lamps. The final stage also means that incandescent lamps will completely withdraw from the Chinese market from October 1. In the first half of 2016, the cumulative production of incandescent bulbs nationwide reached 2.012 billion, and most of the incandescent products are facing an exit after October, and the LED industry will welcome a new market of up to 100 billion. This brings benefits to the major domestic LED lighting companies. Although the lighting supply and demand structure is not as good as RGB, the subsequent ban on whitening is also expected to improve demand. Some small and medium-sized chips also have room for price increases. Chip + package accounts for about 10% of the cost of lamps. The price increase of chips and other terminals is limited for terminal applications, and the downstream lighting needs are overseas. Exuberant, as well as the last stage of the domestic ban, the individual sub-products may also benefit from price increases, sunshine lighting, Foshan lighting, and Op Lighting.

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