Support policies to accelerate the pace of LED applications

Warren Buffett, chairman of the Berkshire Hathaway Investment Group’s Board of Directors, visited China for the fourth time and became a topic of heated discussion among investors. In recent years, Buffett has been involved in new energy fields in large numbers and has also allowed investors to This time there was an infinite association with China. LED lighting sector will undoubtedly become the most glamorous star block in the near future.

Policies give impetus to LED applications

Warren Buffett, chairman of the Berkshire Hathaway Investment Group’s Board of Directors, visited China for the fourth time and became a topic of heated discussion among investors. In recent years, Buffett has been involved in new energy fields in large numbers and has also allowed investors to This time there was an infinite association with China. LED lighting sector will undoubtedly become the most glamorous star block in the near future.

Following Wednesday's daily limit of shares of long-short stocks such as Sanan Optoelectronics Co., Ltd. and Maoshuo Power Supply Co., Ltd., there were daily limit adjustments such as Dongjing Electronics, Hongli Optoelectronics, Ruifeng Optoelectronics and Jufei Optoelectronics. Among them, Sanan Optoelectronics and Jufei Optoelectronics rose more than 80% in one month, and Jufei Optoelectronics' share price hit a record high.

After experiencing the wave of price cuts and closures in the past two years, the domestic LED industry has shown signs of recovery. Under the background of the central government’s strategy to promote “new urbanization”, energy-saving and environmental-friendly LED lighting has been favored, and commercial and public lighting demonstration projects launched by local governments have recently come one after another.

Industry analysis pointed out that with the continuous introduction of industrial support policies, the industry ushered in the dawn of recovery, the relevant plate also has investment opportunities.

Increased policy support

Due to its high electro-optical conversion rate, LED meets the current requirements for energy conservation and emission reduction. Therefore, in recent years, from the central government to the local government, LED industry support for the promotion of LED manufacturing and promotion of industrial policies has been introduced, effectively promoting the formation of the LED industry chain and the development of mature Accelerate the application of LED products.

According to media reports, the General Office of the Fujian Provincial Government forwarded a notice from Fujian Information Technology Bureau on “Some Measures for the Promotion and Application of LED Lighting Products in Fujian Province”, stating that by the end of 2015, the LED lighting products will be generally used in public lighting. The province achieved a year-on-year lighting energy saving of more than 50%, reducing carbon dioxide emissions by 400,000 tons per year, and driving the province's LED industry to increase its output value by more than 50 billion yuan in the current year.

In addition, relevant officials of the Foshan Municipal Science and Technology Bureau disclosed that the city will soon announce the LED green lighting subsidy policy, and subsidize the investors according to the completion of the LED lighting application to complete 10% of the total project. It is reported that the specific implementation measures of the policy have been reported to the Foshan Municipal Government for approval. The 30 million yuan of special funds involved will be used to subsidize projects that popularize LED lighting in the public lighting field.

In fact, related policies began to be introduced at the beginning of this year. The six ministries and commissions jointly issued the "Semiconductor Lighting Energy Saving Industry Plan" and the "Guangdong Province's Implementation Plan for the Promotion of the Use of LED Lighting Products" in a comprehensive manner. From the national level to the local government level, the LED industry is still strongly supported.

Market demand exceeds expectations
Northeast Securities believes that the “sweet period” of the LED lighting industry is gradually approaching. In 2010, the global LED industry market scale will be nearly 10 billion US dollars, of which the market size of general lighting is about 2.5 billion US dollars, accounting for 25% of the total market share. The global LED industry has a market size of nearly 20 billion U.S. dollars, and the general lighting industry has grown to a market size of 10 billion U.S. dollars, accounting for more than 50%. LED lighting industry will usher in the rapid development of the "sweet period."

According to analysis of Guosen Securities, as the demand for TV backlighting and lighting increases, the LED industry will gradually enter the peak season in the second and third quarters. The monthly operating data of Taiwan's wafer and packaging companies and the investigation of the domestic LED industry chain , Downstream lighting demand has improved beyond expectations.

Leading company performance looming turning point

From the quarterly report of the leading listed companies, we can see that the performance of the listed companies has inflection point or emerged.

Jufei Photoelectric achieved operating income of RMB 138 million in the first quarter, a year-on-year increase of 42.64%; net profit of RMB 29.06 million, which was a year-on-year increase of 19.23% and a chain growth of 31.97%. Zheshang Securities researcher Liu Chiachi expects the company to no longer be a high point in the first quarter. The performance in the second quarter will not be worse than in the first quarter, guaranteeing a higher growth rate in the first half of the year.

A quarterly report released by San'an Optoelectronics Co., Ltd. shows that the company achieved operating income of 629 million yuan in the first quarter, an increase of 23.3% year-on-year; operating profit of 140 million yuan, an increase of 18.59%; net profit of 160 million yuan, a year-on-year decrease of 18.8%.

Analyst Qian Wenli of Guohai Securities analyzed that the industry's demand has been continuously improved and the downstream shipments have been significantly improved. After entering April, the overall improvement of the industry has become more apparent. It is expected that the company's financial position will further improve.

Institutional hot money helps boost

In the process of rising LED concept stocks, institutions and hot money played a concerted effort.

Jufei Optoelectronics quarterly report shows that the top ten shareholders of tradable shares are new to the current period, including a total of 12.5 million held by multiple agencies including two Franklin Guohai Funds, 105 Social Security Portfolios and 2 Changsheng Departmental Funds. share.

The statistics of the Shenzhen Stock Exchange Long-Term yesterday showed that among the top five companies that bought Jufei's largest amount of money, there were four agency seats, totalling RMB 53.01 million.

According to the Shanghai Stock Exchange's public trading information, on May 15, Sanan Optoelectronics purchased a total of 171 million yuan from four agency seats, which accounted for 25.91% of the total turnover of the day. Shenzhen Stock Exchange trading information revealed that Maoshuo Power was bought by an agency seat totaling 21.63 million yuan, accounting for 9.98% of the total turnover of the day. The two companies are daily limit daily.

Mr. Xiao, a research director of a private equity fund in Shenzhen, analyzed that under the encouragement of industry policies, the LED industry will usher in an inflection point, and after the price cuts and closures, the reshuffling of the entire industry will also accelerate, and related leading companies will Take up a great advantage. The industry’s recovery also brings medium to long-term investment opportunities for the sector, and each callback is an opportunity to build a long position in the long-term.

<br> <br> bullish brokerage operation three types of enterprises

Recently, the report on the LED industry and related listed companies has increased significantly. Most of them believe that the business climate is approaching and they will be given an industry-recommended rating. The performance of eye-catching Ju Fei photoelectric, in the past month, more than a dozen brokerage research reports are given buy, recommend, strongly recommended rating.

Guosen Securities believes that the contributing factor to the improvement in demand exceeding expectations is the continued decline in the price of LED products and the in-depth implementation of the overseas incandescent lamp elimination plan. It is optimistic about the industry's future trends and gives the LED industry a “recommended” rating.

For the LED industry, Guosen Securities recommends focusing on three types of companies: First, Sanan Optoelectronics, the upstream chip manufacturer with the greatest performance elasticity after the downstream demand, followed by Sunlight Lighting, Hongli Optoelectronics, which owns the sales channels, and has a brand advantage; The fast-growing smart terminal market and competitive landscape are better and are the most reliable LCD backlight backlight manufacturers in the industry, such as Jufei Optoelectronics and Ruifeng Optoelectronics.