The profits of most LED companies have improved

According to statistics from relevant financial media, the LED industry has begun to recover since last year. A few years ago, the price of 5W LED lamps was 3-4 times that of energy-saving lamps of the same brightness. However, in recent years, the price of upstream chips has dropped at a rate of about 30% per year, and costs have generally dropped. By 2013, the price of LED end products will be basically the same as that of energy-saving lamps. The LED industry is expected to enter the stage of comprehensive replacement of traditional lighting products. Benefiting from the rapid growth in demand and the recovery of the industry's prosperity, many LED companies have experienced performance growth.

According to market data, as of July 2, 17 of the 45 LED listed companies have announced interim performance forecasts. Among them, 15 companies have announced good results, accounting for 88.23% of the companies that have announced performance forecasts.

In terms of performance growth, the company with the largest performance growth was Shiyida, with net profit increasing by 118.09%. Xinhaiyi’s net profit increased by 80%, ranking second. Heertai's net profit increased by 60%, ranking third.

Judging from the market realization in June, the largest increase was Shiyida, with an increase of 20.14%. Wanrun Technology increased by 14.18%, ranking second. Heertai increased by 12.1%, ranking third.

LED lighting is the third light source revolution after incandescent lamps and fluorescent lamps. In recent years, with the increasing awareness of energy conservation and the demand for smart product displays, the prosperity of the LED industry has continued to rise. The industry generally predicts that LED market demand is expected to maintain rapid growth within three years. According to agency estimates, this year will be an optimistic year for China's LED market, in which LED chip revenue will increase by 36.6% to US$1.475 billion, and packaged LED revenue will increase by 14.8% to US$4.812 billion. As China's policies on LED lighting are gradually introduced, many export-oriented companies will begin to move to China's domestic market, and traditional lighting companies will also transform into LED lighting. In the future, as the industry boom continues to rise and company performance grows, LED industry-related stocks deserve investors' long-term attention.