This week, as the “window†of LED price hikes gradually cooled down, the industry ushered in an adjustment period in the second half of the year. The divestiture and sale of assets around Philips and Osram have once again become the focus of the industry.
At the same time, more market segments of LEDs have begun to sweep out, whether it is infrared, UV, VR/AR, automotive lighting and other sub-sectors, may become the new growth point of the next round of LED industry.
According to the GGII, the high-tech production research institute (GGII) believes that in the long run, the LED production capacity is high, the market share is concentrated, and the industry capital integration trend is gathering, especially in the middle and upper reaches. As the traditional lighting approaches the end of the alternating cycle of LED lighting, the LED lighting industry landscape tends to be stable.
At the same time, the trend of capital to promote a new round of changes in the LED industry is becoming more and more obvious, especially the overseas assets and brands, channel acquisitions are still active.
Despite the strong price rise of LEDs in the third quarter, the market is on the rise, but the price is still facing downward pressure in the medium and long term.
However, various indications indicate that the transformation of the competition elements of the LED industry has begun to take shape. The passive shrinkage of traditional lighting, the rapid increase of LED penetration rate, the elimination of production capacity and the acceleration of concentration have gradually improved the development quality of China's LED lighting industry.
At present, there is no big change in the fundamentals of the LED lighting industry, but in the process of steady growth, there are still many new opportunities. It is expected that in the second half of the year, the new market power of the LED industry will continue to be released, and the positive factors will further increase, and the stable foundation will be further consolidated.
The growth rate of the output value of the LED industry is expected to continue to rise steadily throughout the year.
1. Interpretation of the top ten development trends of the LED industry in the second half of the year
The High-tech Research Institute LED Research Institute (GGII) believes that the global LED industry is entering the development cycle dominated by “Chinese companiesâ€. On the one hand, the pattern of China's local LED industry has basically taken shape, and the performance growth and capacity expansion of a number of leading enterprises in the middle and lower reaches have entered a new stage.
In particular, the strong power of China's capital market has pushed China's LED companies to quickly squeeze the global market share by means of mergers and acquisitions, and formed a counterbalance between traditional multinational giants.
In the second half of the year, the LED industry is still facing greater opportunities, and of course risks coexist. On the one hand, technological innovation is still evolving rapidly, and the maturity of new technologies such as CSP is accelerating. The new application market represented by infrared, ultraviolet and headlights is starting. On the other hand, there will be new trends in mergers and acquisitions around capital and integration.
The High-tech Research Institute LED Research Institute (GGII) has compiled the top ten trends in the LED industry in the second half of the year, presenting new opportunities and new trends for LEDs in the second half of the year.
2. Osram has successively divested and sold assets. What is the intention?
According to Bloomberg News, Siemens is considering selling its remaining 17% stake in OSRAM, worth 777 million euros, or about $872 million, and potential buyers include Chinese investor Jinshajiang Venture Capital.
It is reported that the equity transfer has also attracted other Chinese investors, including some PE institutions. It is rumored that this transaction will be announced as soon as this month.
According to the latest 2016 second quarter results, OSRAM's revenue for the quarter was 1.442 billion euros, up 6.6% year-on-year; net income was 28 million euros, down 56.8% year-on-year. According to the Siemens sales price, Osram's overall valuation is 4.57 billion euros, or about 34.293 billion yuan.
In recent years, due to the fierce price competition brought by the rapid expansion of production capacity of China's LED upstream chip companies, the market share of foreign LED companies including Osram has been squeezed.
At present, some foreign LED companies have reached a certain bottleneck of development, and this part of the sale is no longer their core business. With the rapid rise of China's LED chip and packaging companies, the market competitiveness of OSRAM lighting LED devices is getting weaker.
3, the arrival of the quality era: "random sampling" is coming
The General Office of the State Council recently issued the "Consumer Product Standards and Quality Improvement Plan (2016-2020)", deploying advanced standards to lead the improvement of consumer goods quality, and forced the transformation and upgrading of consumer goods and equipment manufacturing.
According to the plan, the state will establish a unified and standardized supervision and inspection mechanism, and implement the system of “random random inspection of enterprises, random sampling products, and random selection of testing institutionsâ€.
For products of the same specification and type that are qualified by the national supervision and inspection of product quality, no place, department or institution shall repeat the spot check within 6 months. Promote the sharing of information on the results of quality supervision and inspection of consumer goods, and achieve “one standard, one inspection, mutual recognition of results, and national accessâ€.
Last year, the General Administration of Quality Supervision, Inspection and Quarantine announced the results of the national supervision and sampling of 34 kinds of products such as toys in 2015. In this sampling, the unqualified detection rate of 15 kinds of products such as self-ballasted LED lamps and self-ballasted fluorescent lamps for general lighting is higher than 10%.
4, Qinshang photoelectric cross-border education into the "deep water area"
On September 6, Qinshang Optoelectronics issued two announcements to announce that the controlling shareholder Qinshang Group intends to remove Zhao Jun, the vice chairman. Qinshang Optoelectronics stated that Qinshang Group proposed to remove Mr. Zhao Jun’s director and vice chairman, and remove the duties of its members of the Strategy Committee, the Remuneration and Appraisal Committee and the Nominating Committee. Take over.
At the same time, Mr. Deng Junhong was nominated as a candidate for director of the company for a term of office from the date of approval of the general meeting of shareholders to the expiration of the term of the current board of directors. The reasons for the recall given in the announcement are: full consideration of the future strategic development of Qinshang Optoelectronics, the industrial layout, the reasons for the company's transformation, and the advice of the company's board of directors.
On August 19 this year, Qinshang Optoelectronics announced that the company has issued a share purchase to purchase 100% of Guangzhou Longwen Education and has completed the transfer. Guangzhou Longwen Education has become a wholly-owned subsidiary of Qinshang. As a result, Qinshang also announced that the company has realized the dual main business layout of semiconductor lighting products and university K12 counseling services.
The major shareholder wants to remove the vice chairman's storm, or just a small episode in the direction of the transformation of the photoelectric. For Qinshang Optoelectronics itself, the problem that needs to be solved now is how to coordinate the development pattern of the dual main business.
5, LED chip competition has passed a new round of turning point
With the elimination of incandescent lamps and the improvement of people's product quality requirements, the era of low-quality and low-price competition has become a thing of the past, and product price increases and benign market competition continue to be expected.
As the second largest chip manufacturer in China, Shi Songgang, director of marketing of Huacan Optoelectronics, said: “On the one hand, the competition of enterprises is becoming more rational and the cost is gradually rationalized; on the other hand, the demand for downstream LED small-pitch display is exploding, and sales are growing. These factors are integrated. Together, it has promoted the recovery of the entire LED market."
Huacan Optoelectronics also actively expanded production this year, with a total investment of 6 billion yuan in LED epitaxy, chip and sapphire projects. In addition, the acquisition of Blue Crystal Technology also guarantees subsequent competitiveness from the integration of supply chain.
Indeed, in the first half of the year, the demand for LED chips continued to grow, and production and sales increased steadily. For Huacan Optoelectronics, it further consolidated its dominant position in the market. In particular, benefiting from the rapid growth of the demand for small-pitch display screens, Huacan Optoelectronics' products in the display segment market show a prosperous situation of both production and sales.
According to the data of the semi-annual report, Huacan Optoelectronics realized a net profit of 53.171 million yuan in the first half of the year, an increase of 323.02% over the same period last year. The reason for the sharp increase in net profit is that after the chip products experienced a decline in the fourth quarter of 2015, the price rebounded in the second quarter of this year compared with the fourth quarter of the previous year and the first quarter of this year.
This round of chip price hikes is undoubtedly the turning point of upstream stage competition.
6, LED lighting intelligent way out "arrow on the string"
Recently, the adjustment technology for intelligent lighting has received 50 million yuan Pre-A round of financing for a time to become the focus of attention. The founder has painted a beautiful blueprint for the smart lighting industry.
However, from the price of the released product, the minimum package price is 1380 yuan, including 3 bulbs and 1 switch. Despite the concept of fashion, sentiment, intelligence, health, etc., compared with ordinary LED lights, this price is still high.
The intelligent way out around LED lighting seems to have been "arrowed on the strings."
Philips this week announced a YellowDot (Yellow Point) program to open its LED-based indoor positioning technology to other lighting companies. To support the program, Philips plans to introduce three LED drivers (60W, 100W and 150W) by the end of this year.
LED optical communication technology, which is one of the functions of indoor positioning, has attracted many companies to participate in research and development in the domestic market in the past few years. Enterprises including Zhouming Technology, Qinshang Optoelectronics, and Huace Optical Communications have released relevant technologies and products.
Whether it is OSRAM's Bluetooth device or Philips' VLC system, it is currently being tested in physical stores, and US retailer Target has tested both products. However, because the emerging technologies are still in the development stage, the future trend is still to be observed.
This week, Verizon announced the acquisition of the Internet of Things startup Sensity. Founded in 2010, Sensity is a company that provides smart LED lights for streets, airports and shopping centers. Previously, Sensity had received more than $70 million in capital injections.
Whether it is OSRAM's Bluetooth device or Philips' VLC system, it is currently being tested in physical stores, and US retailer Target has tested both products. However, because the emerging technologies are still in the development stage, the future trend is still to be observed.
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