Due to the large market space in my country’s lighting industry, the entry barriers for low-end product industries are relatively low, especially after the rise of LED lighting, a large amount of social capital has poured in, thus forming a relatively high industry concentration Low and fierce market competition in the industry competition pattern.
Among them, the international first-line brands represented by Philips, Osram and General Electric, and the domestic first-line brands represented by NVC Lighting, Op Lighting, etc., rely on their accumulated brand advantages for many years, extensive sales channel network, and more Strong technical research and development strength and strict and stable product quality occupy the mid-to-high-end market. In many small and medium-sized lighting manufacturers, their product technology maturity and quality stability are relatively low, the added value of their products is relatively low, and the phenomenon of product homogeneity is more serious. Price competition is the main means to participate in the low-end market competition.
At the same time, in the emerging LED lighting market, due to the strong support of government policies, the entire LED lighting is showing a trend of rapid development. In addition to traditional lighting companies using their competitive advantages in the lighting industry to transfer to the LED lighting market, they also face LED Companies in the upstream and downstream industry chains use their LED chips, packaging and application technology and production advantages to gradually extend to the competitive pressure of lighting products.
Related data analysis shows that globally, the number of participating companies in each link of the LED industry chain is in a pyramidal distribution. In 2016, the global LED industry market scale was as high as 699.6 billion yuan, an increase of 8.6% from 2015, the lowest growth rate in 4 years. It is expected to continue to decline in the next few years, but the overall upward trend remains unchanged. my country's LED industry has been expanding steadily, and the structural differentiation within the industry has become increasingly obvious.
At the beginning of this year, this newspaper also made a prediction for the LED industry: the downstream market expands and LED prices rise. Affected by the macro economy, the overall LED industry is relatively optimistic, and downstream demand will also carry greater industry pressure. In addition to coping with the dilemma of product homogeneity, it also faces a wave of overall price increases in upstream industries. The accelerated concentration in the upstream and the increase in production capacity have brought demand into a state of steady growth. Therefore, if the industry starts to pick up, the first to get significant benefits must be upstream companies, which in turn will lead to the development of downstream industries.
It is not accidental that listed companies have become popular in the first quarter
Just as the industry was optimistic about the prospects at the beginning of 2017, the LED industry began to enter a state of rapid recovery: According to the first quarter reports of major LED listed companies, the LED concept related listed companies that belong to A shares The quarterly results were generally good. Nearly 90% of companies have achieved growth in net profit, and more than 30% of companies have doubled their profits. For example, in the first quarter of 2017, the net profit growth of Qianzhao Optoelectronics reached 7598.90% year-on-year.
In fact, we can see some commonalities from the performance analysis of the top-growing listed companies. Relying on such an astonishing growth rate, Qianzhao Optoelectronics obtained a net profit of 41.57 million yuan. According to Qianzhao Optoelectronics, the substantial increase in profits is due to the company's production process improvement and yield improvement for the blue-green light project. The output of chips and epitaxial wafers has also increased. .
HC Semitek, which made a net profit of 80.78 million yuan in the first quarter, believes that the commissioning of some of the company’s new production capacity and the improvement of the efficiency of technical transformation equipment have greatly increased the sales of chips; and the newly acquired sapphire business module has also Further improve the overall income level of the company.
Unilumin Technology, whose net profit growth is equally astonishing, said that it will not only continue to upgrade and optimize product technology, but is also very confident in its growth performance in the second quarter. It is not difficult to see that it is not accidental that these companies are able to usher in such a huge growth rate, on the contrary it is the performance of accumulation. Increasing production capacity by studying technology can not only bring benefits to its own potential business, but also promote the development of existing projects and expand profit margins.
The capital market has become a battleground for LED lighting companies
LED listed companies can smoothly generate higher profits through effective technology research and development, and it is indispensable for the "contribution" of the capital market. my country's LED industry has gradually shifted from the initial technology research and development, policy assistance and market drive to capital drive. More and more companies have taken the capital express to achieve leapfrog development. As the newly listed Sanxiong Aurora this year, it also performed well in the first quarter, with a net profit of 22.21 million yuan, a year-on-year increase of 35%. And in order to continue to maintain profit growth, Sanxiong Aurora stated that it will continue to increase R&D investment on the one hand, and on the other hand, push project construction based on actual conditions.
In the tens of billions of LED industry structure, the continuous growth of companies through listing and financing seems to be a visible development. For the growing LED companies, listing may be a benign "ripening agent". According to the latest news, LED lighting companies such as Jucan Optoelectronics and Huati Lighting will also pass the review of the China Securities Regulatory Commission and be listed within this year.
Smart lighting remains to be seen
As for the intelligent trend that all walks of life have been concerned about, it may enter the "bottleneck period" of development, and the same is true for intelligent lighting. Although giants in various fields poured into the smart lighting market across the border last year, in the final analysis, the LED industry is developing on the way back to quality, and there are many functional factors that are limited due to immature technology.
Because of the low technical threshold of LED, companies can easily enter the market, leading to the LED lighting industry in an era of low prices and meager profits. Therefore, seeking new breakthroughs has become the top priority of LED companies. At the national level, smart lighting has long been an area encouraged by national industrial policies and energy policies; technically speaking, due to the photoelectric characteristics of LEDs, it is easier for LEDs to adjust the brightness, color temperature, and color of light, so smart lighting It can only be realized on LED; from the perspective of consumers, humanized smart lighting is inevitable for consumers to pursue home service upgrades; from the perspective of market development, the smart lighting market is a blue ocean, with innovative technologies and understanding of Internet development Model companies are more competitive. This is a good time to eliminate low-quality products and return lighting to the center of the family.
From the signing of a cooperation agreement between Philips Lighting and Huawei, to the signing of a joint statement between Xiaomi and lighting companies, announcing the joint promotion of the development of the smart lighting industry. In recent years, giants in Haier, ZTE, JD Emerging fields of various technologies such as IT technology. Many well-known companies can cross-border alliances and enter the smart lighting market. The reason is that only smart lighting systems incorporating black technology can achieve humanized control of all lighting equipment in the entire indoor space, such as automatic adjustment, voice control, and Scene lighting and other functions. In addition, with the outstanding quantity and distribution of lighting equipment, it has the natural advantage of obtaining big data, laying the foundation for more high-value-added home services. From unmanned driving to VR/AR, the era of intelligence has entered our lives invisibly, and the future will usher in an intelligent subversion. The construction of intelligent lighting systems will add new brilliance to the field of intelligent lighting.
