Listed LED companies are not "restful": What industries have been boosted by cross-border development?

Intelligent, plant, and automotive lighting LED lighting companies love to "try new things"

Among the seven major lighting companies, Sunshine Lighting, Foshan Lighting, Feile Audio, Qinshang Optoelectronics, Jiawei Co., Ltd., Sherlite, and Ocean King, except for Jiawei Co., Ltd., which has increased revenue but not profit, and Ocean King, which has neither increased revenue nor profit, the other companies have increased both revenue and profit.

(Note: As of June 1, NVC Lighting has not yet released its first quarter report for 2015)

Current situation: Listed companies love to cross borders

In the first quarter of 2015, revenue growth did not increase profits. Jiawei Co., Ltd. stated that it has fully invested in the main LED business field, continued to extend subdivided business areas and product lines, and developed new businesses, resulting in a significant increase in expenses, resulting in a decrease in net profit compared with the same period last year.

Listed LED companies are often not so "settled" and like to cross borders. Whether it is LED downstream application companies or upstream and midstream companies, crossover has become a trend. Among them, LED display companies are very prominent. They are involved in cultural media, advertising, and sports industries through LED display media, such as Lianjian Optoelectronics and Ledman Optoelectronics. There are also some companies that have completely crossed over into financial electronics, such as Alto Electronics. There are similar companies in the field of LED lighting: Jiawei Co., Ltd. and Qinshang Optoelectronics are trying finance, and Furi Electronics is trying supply chain business.

In addition, e-commerce has also become a "favorite" for LED lighting companies. Statistics show that LED product e-commerce developed rapidly in 2014. In the first eight months of 2014, Taobao's LED lighting turnover reached 3.2 billion yuan, of which LED light sources were approximately 230 million yuan, a year-on-year increase of 126%. It is expected that the sales of LED lighting products in e-commerce channels will continue to grow rapidly in 2015. Listed companies such as Sunshine Lighting and NVC Lighting are actively using Internet channels to develop markets.

Trend: LED lighting explores new directions

CSA Research data shows that in 2014, the global lighting industry has entered a new era in which LED lighting takes the lead. my country's general lighting output value is approximately 117.1 billion yuan, with a growth rate of approximately 68%, and its proportion of the application market has also increased from 34% in 2013 to 41% in 2014. The domestic market share of LED lighting products (domestic sales volume of LED lighting products/total domestic sales volume of lighting products) reached 16.4%, an increase of about 7% from 8.9% in 2013. Among them, commercial lighting grew rapidly, public lighting grew rapidly, and home lighting began to take off. UBS predicts that the overall global lighting market will grow by 38% in 2015, of which residential LED lighting market demand will grow by 62%. The penetration rate of LED lighting will reach 50% in 2015 and 80% in 2020, with the market size reaching 100 billion US dollars.

At present, the LED lighting industry is showing four trends: First, technological progress and industrial scale growth have prompted further reductions in costs, and the cost performance of LED lighting products has further improved compared with traditional lighting products such as energy-saving lamps; second, LED production capacity has gradually shifted from the United States, Japan, and the European Union to Asia, especially mainland China. The relocation has provided good development opportunities for mainland manufacturers; third, industrial integration has gradually increased industrial concentration, and industry leaders with core technology advantages, channel advantages, and scale advantages have grown rapidly; fourth, new directions such as intelligent lighting, plant lighting, and automotive lighting will open up space for growth in the post-LED lighting replacement era. At present, both listed companies and small and medium-sized enterprises have started to explore and reserve intelligent lighting technology and market.

LED lighting is booming in supporting industries

In the LED industry chain, in addition to LED chips, LED packaging, LED displays, and LED lighting companies, there are also companies engaged in LED drive power supply, equipment and other businesses. Listed companies engaged in the LED drive power supply business include Maoshuo Power, and listed companies engaged in the equipment business include Han's Laser, Jingsheng Electromechanical, Tianlong Optoelectronics, Yuanfang Optoelectronics, etc. In the first quarter of 2015, Maoshuo Power neither increased revenue nor profit, and suffered a serious loss of 18.35 million yuan. Denon Optoelectronics also neither increased revenue nor profit, and Yuanfang Optoelectronics increased revenue but did not increase profit.

The field of driving power supply will be more concentrated

Regarding the severe losses in the first quarter of 2015, Moso Power stated that its gross profit margin has declined due to factors such as fierce competition in the industry market, rising labor costs, and increased factory rents. LED driving power supplies have not brought too many benefits to Mosuo Power. In the future, Mosuo Power will focus on six aspects for development: switching power supplies, LED driving power supplies, photovoltaic power station applications, new energy vehicle charging piles, FPC and investment.