LED listed company's first-quarter performance is growing steadily, the market is expected to pick up

After a whole year of price wars and the impact of the industry's intense reshuffle, the LED industry finally ushered in the spring of 2016. Just entering mid-March, a number of LED manufacturers have been able to throw out the "beautiful" first-quarter performance forecast.

So far, at least five LED companies have released the 2016 first quarter results forecast. Hongli Optoelectronics, Lianjian Optoelectronics, Lehman shares and Changfang Group achieved remarkable results in the first quarter, showing a substantial growth trend.

LED packaging giant Hongli Optoelectronics released the first quarter results forecast, the first to take the lead. The net profit attributable to shareholders of listed companies is expected to be 57.267 million yuan – 65.44 million yuan, an increase of 110%-140% over the same period of the previous year.

As a LED listed company, Hongli Optoelectronics can be regarded as the “standard” of the packaging industry. Each development plan also represents the development direction of the whole industry. Its product development and market layout are highly concerned by the industry.

In the future, with the technological advancement of LED, the expansion of industry scale, market competition and other factors will affect the price of LED packaging products. Hongli Optoelectronics Dongshou Deng Shoutie said, "Package prices will decline in 2016, but the gross profit margin of LED package products is expected to be relatively stable, there will be no significant fluctuations."

Expanding production capacity and improving technology are important strategic objectives for the development of LED packaging companies. "Hongli Optoelectronics will expand production in Nanchang Optical Valley. The main products are mainly SMD patches. It is expected to start production in June this year, and the production capacity will exceed 1000KK/month." Deng Shoutie told Gaogong LED.

LED display giant Lehman shares in the first quarter is expected to belong to the listed company's shareholders net profit of 8,083,300 yuan - 101.919 million yuan, an increase of 15% - 45% over the same period last year. The first quarter results of Lianjian Optoelectronics, which is also the LED display company, are also pre-increased. The performance forecast shows that the net profit attributable to shareholders of listed companies has reached 53 million to 60 million yuan, an increase of 92.86% to 118.33% over the same period of the previous year.

According to the statistics of the High-tech Research Institute LED Research Institute (GGII), the output value of the domestic LED display field reached 29 billion yuan in 2015, a year-on-year increase of 3.6%.

"The display market is very mature at present. In the past two years, a large number of display companies with output value below 200 million yuan have closed down a lot, and market share concentration is getting higher and higher." GGII senior analyst Li Shengfa said that with the number of enterprises The reduction in price in the display field is relatively small compared to the lighting industry, and the price of conventional products is more stable.

"With the slowdown of domestic economic and economic growth, the LED display industry is in the reshuffle stage. The Matthew effect of 'stronger strong, weaker weaker' is constantly emerging, and the superior resources are becoming more and more inclined to excellent enterprises. The future LED display market Full of opportunities and challenges.” Huang Zhiyong, deputy director of Powerful Color Marketing Center, said.

The Changfang Group also expects a net profit attributable to shareholders of listed companies in the first quarter of 13 million to 15 million, an increase of 77.69% -105.03% over the same period of the previous year.

With the sharp increase in demand for LED lighting, price wars have become the main means for companies to seize the market.

Zhang Xiaofei, chairman of Gaogong LED, predicted that the LED lighting enterprises that do low-end products in the next three years will lose the soil for survival, and the number of lighting enterprises will be reduced by half. After the reconstruction of the lighting pattern, the next round of competition will be carried out between large enterprises and big brands. The brand is fighting, the price is good, and the stronger the stronger.

Lin Yan, deputy general manager of Sanxiong Aurora, also believes that only low-priced, high-quality products can ultimately win the market.

"As far as the current situation is concerned, in 2016, the LED lighting market will continue to be more intense in the market competition last year. Establishing corporate brands, improving product quality value, and strengthening lighting design innovation are the ultimate guarantees for lighting products. Intelligent lighting layout is still the future. The key direction of market planning.” Li Quan, manager of Sanxiong Aurora Brand Management Center, told Gaogong LED.

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