Chinese mainland enterprises "grab the food" LED lighting market for high-margin vehicles

[High- tech LED reporter Zhao Hui] On April 19, Xingyu shares (SH.601799) issued an announcement on investing in “annual production of 500,000 sets of LED lights and supporting projects”. According to the announcement, the company plans to use 588 million yuan to invest 500,000 sets of LED headlights and supporting projects. The project is expected to have a construction period of two years. The estimated annual profit is 186.074 million yuan and the financial internal rate of return is 20.67%.

In the past 2012, overcapacity, price wars, bankruptcies, mergers and acquisitions, and the industry's big dramas have been staged in the LED industry.

The 2012 annual report released by major LED listed companies shows that corporate performance was generally low last year. In 2012, many LED companies showed a significant decline in both revenue and net profit. According to industry insiders, the structural overcapacity of the LED industry will continue in 2013, and related companies will continue to digest inventory and gain market share through price cuts.

Excessive production capacity and rapid decline in prices are also driving companies to develop products with high profit margins and strong demand in the application field. Since last year, LED lights for automobiles have attracted many companies with their high gross profit.

“Guangdong Foda’s subsidiary, Hongli’s main automotive LED lighting products, last year’s revenue reached more than 46 million yuan, and the gross profit margin of automotive LED products was as high as 41%.” G20-LED Summit member company Hongli Optoelectronics (SZ. 300219) Deputy General Manager and Secretary-General Deng Shoutie told the "High-tech LED" reporter that with the advantages of Hongli Optoelectronics in technology and cost, Guangzhou Foda seized market opportunities, adjusted the structure of automotive LED products, and vigorously developed automotive lighting. In the international market, the revenue of automotive LED products increased by 65.20% compared with 2011.

Deng Shoutie said that the automotive LED business is currently in a period of sustained high growth. At present, Fo Da signal has successfully entered the pre-installation market of some auto manufacturers. Since 2012, the company has focused on the development of LED automotive lighting products. It is expected that automobile headlamps will generate certain sales revenue in 2013 and mass production in 2014.

According to industry insiders, in the past few years, automotive LED products have been mainly used in backlights for 5-10 inch LCD panels, interior lighting and automotive taillights used in car dashboards, portable DVD drives and car navigation systems.

The shareholder of the G20-LED Summit, Ruifeng Optoelectronics (SZ.300241), is also growing in the market for small and medium-sized LED backlights such as car dashboards, stereos, and car DVDs. The financial report shows that Ruifeng Optoelectronics' LED application revenue in the first half of 2012 was 4,372,300 yuan, and the gross profit margin reached an astonishing 65.55%.

In recent years, with the gradual improvement of LED performance, headlights have become a new market opportunity.

According to the statistics of China Association of Automobile Manufacturers, in 2012, China's automobile production and sales both exceeded 19 million, and the output has exceeded 18 million for three consecutive years. It is the world's largest automobile production and consumption country.

Faced with the growing trend of the domestic automotive LED market, coupled with the average gross profit margin of more than 30%, automotive LED has become a new blue ocean for LED manufacturers to compete.

At present, Dominant and Osram, the global automotive LED market, have an absolute share. In recent years, Taiwanese and mainland Chinese companies have also begun to compete in this segment.

Recently, OSRAM has launched a new generation of MiniTopled and Topled classics, which are tailored to the high brightness and high quality requirements of private and public passenger transportation vehicles, ideal for buses, trains, airplanes and cars. illumination.

According to the research report of the High-tech LED Industry Research Institute (GLII), the scale of China's LED application industry reached 159 billion yuan in 2012, a year-on-year increase of 37%. LED applications have become the fastest growing segment of the upstream, midstream and downstream industries. LEDs are also maturing in indoor and outdoor functional lighting, special lighting, automotive lighting and other applications.

GLII expects that China's LED industry competition will be more intense in 2013, and specific segments such as automotive LED products will usher in opportunities.

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