In 2017, the LED display industry is turning into a turnaround, with large business revenues and even substantial growth. With the continuous improvement of LED penetration rate, the global LED industry growth rate is gradually slowing down, while the market share of LED upstream chips and mid-game packaging enterprises has been greatly improved. In recent days, many manufacturers have accelerated their production and gained huge profits, which are affected by the industry, and the profit of some LED enterprises will climb again in short supply.
1. The trend
Supply and demand is tight in the short term
Recently, the demand for LED chips has become clear. In terms of supply, the capacity of the effective LED chip in 2017 is 83.28 million, with the effective capacity of about 1,083 units as of 2016, and the corresponding capacity is about 63 million tablets/year. Since 2016, the overall supply-demand of LED chips has remained weak, and some products have been strained. By 2017, due to higher raw materials prices, the supply of all upstream LED chips will be in short supply, leading enterprises to raise prices, and the chip market will be expanding again. It is understood that the leading enterprises of LED chips have added about 345 machines this year, and the global effective capacity reached 83.28 million tablets by the end of this year.
In terms of demand, it is estimated that in 2017, there will be 93.5 million pieces of LED epitaxial demand. Among them, the demand for lighting chips is up 20%. The demand for outdoor full-color displays increased by 5%; The requirement for small spacing in indoor space is 2.02 million. The phone’s backlight demand is 1.39 million pieces; The tablet’s backlight demand is 410,000 pieces; Computer and TV backlight demand is 6.99 million tablets; The demand for car lighting is 1.06 million. About 8.39 million others. To sum up, the total demand for LED chips in 2017 is estimated at 93.5 million tablets, up about 12.5 percent.
SAN ‘an optoelectronics is the leading enterprise of LED chip. After the intensive investment in equipment and research and development over the past few years, its chip production and sales volume and production capacity are the first in the country, ranking the top three in the world. The country’s second-largest LED manufacturer, huchanan optoelectronics, currently has more than 700, 000 monthly capacity, and in the field of display applications, the LED chips in China can account for more than a third of the domestic market. In market demand. LED chip leading enterprises effectively expand capacity, market value surge. This is exactly the same, LED chip industry concentration is continuously improved, the depth adjustment, LED chip industry is expected to maintain a relatively stable development situation.
LED package expansion and expansion
LED packaging production value $15.3 billion, the world’s growth rebounded to 5%, Europe, America, Japan and other foreign manufacturers dominate the high-end market, in 2015 China output share of 21%, for the first time ranked first, the proportion is expected to further increase in the coming 2 ~ 3 years. At the same time, the concentration degree of LED packaging industry has been continuously improved, and the domestic faucet has improved the profitability of the enterprise.
China LED encapsulation leading enterprises wood Tomlinson current capacity has more than 42000 kk/month, revenue is expected to exceed 5 billion, 2016, in the domestic first, industry monopoly, and successful acquisition of lang Vance strides to develop overseas market stage, at the same time have been investing heavily in the areas of lighting, chip layout.
On March 21, the company announced that the company’s net profit attributable to shareholders of listed companies from January to March 2017 would be 4865.52 million to 5614.07 million, with a year-on-year change of 30.00% to 50.00%. The average net profit growth rate of the optical electronics industry was 35.89 percent. The company said the company’s expanded production capacity was gradually released and sales revenue increased.
LED packaging and assembly products make up the majority of the company’s revenue, and both companies have made large-scale expansion. The starlight electric since April 2016 has expansion has continued three times, and expansion has wooden Tomlinson enterprise mergers and acquisitions both, enterprise and industry influence effective rise, cause the middle reaches of LED packaging industry concentration degree is more and more obvious, leading enterprises concurrently Evergrande.
2. The situation
Various parties have driven upmarket demand
Throughout the whole LED industry situation, starting from the first half of 2016, due to changes in the industry and rising prices of raw materials, the LED chip, packaging, lighting launched several rounds of price rises, under the influence of “boom”, three Ann photoelectric LED chip 2017 leading enterprises, wood packaging enterprises Tomlinson price bid again, the LED industry pattern of supply and demand change.
Today, LED lighting and LED screens to account for more than two-thirds of the downstream applications. In 2017, the global market penetration rate of LED lighting is expected to exceed 36%, with the growth rate exceeding 20%, while the market growth of the small space LED display will exceed 50%, and the overall supply and demand will continue to increase.
Looking ahead to 2017, LED the market competition is intense, the manufacturer to accelerate screen transferred to the small spacing, infrared and ultraviolet LED niche market in order to profit, forecasts the global LED market output value will reach $2017 in 15.4 billion, the annual growth of 4%. The small spacing LED display market will become a competitive place for the multi-led screen enterprises. In addition, many industry segments and epitaxy markets will also be developed for the industry market demand.
The rise in prices continues to spread
In the industry, the LED industry has long been the price of rising prices. From the malignant price competition to the increase in the price of raw materials reversed transmission LED enterprises nowadays, the pricing of the evolution of the substantive happened between enterprises, after who can minimize the price who can gain more profits, now much-maligned low-priced products, some high price and good quality products are gradually accepted by users, price increases LED to the ascension of the whole LED industry consumption concept and enterprise the evolution of the rational price adjustment.
The price increase is not short term. From the current situation, the LED industry chain price increases, it will be a protracted war. It is impossible to decide whether the price increase will last and the price increase. Only to be sure, as the industrial product price return to a normal level, corporate profits will occur some changes, the low-priced sales lead to industry profit margins decline problems will be eased. At the same time, with the expansion of market demand, increasing the price of enterprises will undoubtedly lead to greater profit margins.
Actually, the LED industry boom besides affected by changes in its own industry, to some extent, and the national policy, economic situation also has big aspects, such as correlation, both upstream LED chip tension between supply and demand, the middle expansion has LED packaging companies to raise or lower reaches of LED display, lighting product prices tend to be more reasonable, LED the whole industry chain will be influenced by many factors.
Promote technology upgrading and application development
Corporate revenue climbed steadily, and industry will bring certain influence to the changing situation, as the LED industry, there is market demand changes, the LED will also improve enterprise technology research and development strength, promote industry technology innovation, to create a more rich technology content of products.
This year, many LED companies have made great achievements in innovation. For example, China star power is the second prize of the national science and technology progress of the national science and technology project, which is based on the “feature design of complex surface thermal function structure and controllable manufacturing key technology”. Color easily by its ROAD READY, kirin two big series, gen photoelectric AirMAGLITE series, JiPuGuang grid series LED display product gains IF Germany international design awards, such as enterprise upgrade significantly on innovation, the future will have greater technological breakthroughs.
In addition, in addition to promoting industry technology upgrading, many new applications will be gradually developed, such as the market of LED, VR/AR, and so on. At present, the car LED market explosion, the car to the light, taillight and so on the place that chooses LED is more and more; The VR/AR LED display can also achieve a more high-tech display. Therefore, the development situation of the industry is good, the profits of the enterprises increase, the whole LED industry technology upgrade and the application will also be expanded.
Change of LED area pattern
With a series of changes, the global LED industry is gradually entering a plateau period, with the growth rate slowing down. Among them, the market share of Chinese manufacturers continues to improve and is playing an increasingly important role.
The data shows that in the field of upstream LED chips, China’s market volume reached 13.9 billion RMB in 2016, with a year-on-year growth of 9%, and the production rate of chipsets increased to 76 percent, and the proportion of top 10 cities increased to 77 percent. In the field of packaging and packaging, the market size reached 58.9 billion yuan in 2016, up 6% from the same period last year, and the domestic production rate increased to 67%, and the proportion of the top ten cities increased to 43%.
It can be seen that the technological gap between Taiwan and Taiwan LED enterprises is shrinking, and the mainland manufacturers have an obvious advantage in cost performance. In the future, LED localization rate will continue to improve.
In addition to the upstream LED chip links, in the LED packaging process, the industry is also entering a flat development period. The industry forecasts that the compound growth rate will be only about 6 percent between 2015 and 2020, a much slower pace than in previous years.
Many of the country’s LED companies are also being moved from the pearl river delta to other areas because of cost pressures. In addition, as the industrial landscape is becoming clearer, industry giants have emerged, and some signs of the transformation of some small and medium-sized enterprises into other industries are beginning to emerge. As a result, the evolution of the entire Chinese LED industry is behind a large number of businesses.