Our country's LED industry has been expanding steadily, and the structural differentiation within the industry has become increasingly apparent. my country has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products.

1. The structural differentiation within the industry is obvious

The growth of the global LED industry market has slowed down, and the future trend is expected to remain upward. Globally, the number of participating companies in each link of the LED industry chain is distributed in a pyramid pattern. In 2016, the global LED industry market scale was as high as 699.6 billion yuan, an increase of 8.6% compared to 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. Although the growth rate of the global LED market scale was not high in 2016, the internal changes and adjustments of the entire industry were large, and the prices of products in the downstream lighting applications continued to fall, but the upstream chip and packaging links were booming.

my country's LED industry has been expanding steadily, and the structural differentiation within the industry has become increasingly obvious. my country has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, the preparation of LED chips, the packaging of LED chips and the application of LED products. As the supply and demand pattern in the upstream chip field improves, the overall chip supply exceeds demand; the market scale in the midstream packaging field continues to expand; the general scale of the downstream application field accounts for more than 40%, the growth rate of traditional applications slows down, and the emerging applications continue to develop. The future of the LED industry is expected to be booming With continuous improvement, the structural differentiation within the industry is becoming more and more obvious.

2. Emerging downstream applications lead the development of the industry

The technical threshold in the upstream LED chip field is relatively high. The listed companies in the upstream chip field in my country mainly include Sanan Optoelectronics, Dehao Runda, Aoyang Shunchang, etc.; the midstream lamp bead packaging field mainly includes Dongshan Precision, Zhaochi Co., Ltd., Mulinsen, and Hongli. Zhihui, etc.; downstream applications mainly include Op Lighting, Leyard, Unilumin Technology, etc. In general, listed companies in my country's LED industry are mainly concentrated in the midstream packaging field and downstream applications. The industry leaders continue to benefit from the fierce market environment, and downstream emerging applications lead the industry's development.

As the supply and demand pattern in the upstream chip field improves, the overall chip supply exceeds demand; the market scale in the midstream packaging field continues to expand; the general scale of the downstream application field accounts for more than 40%, the growth rate of traditional applications slows down, and the emerging applications continue to develop. The future of the LED industry is expected to be booming With continuous improvement, the structural differentiation within the industry is becoming more and more obvious. From the 2016 annual revenue, net profit and growth rate of listed companies in the LED industry, it can be seen that the industry performance is generally better.

3. Investment advice

The technical threshold in the LED chip field is relatively high. Sanan Optoelectronics, which has long-term technology accumulation and is the industry leader, is recommended; the competition in the LED packaging field is fierce, and the industry concentration continues to increase. It is recommended to package the large-scale enterprise Mulinsen and the mid-to-high-end packaging leader with continuous release of production capacity. Hongli Zhihui; LED application industry penetration rate continues to increase, the growth rate of traditional applications has slowed down, and the growth rate of emerging applications has exceeded that of traditional applications. It is recommended to pioneer the original company Leyard in emerging LED small-pitch applications.

risk warning. The industry development speed is not up to expectations; the market environment is subject to the risk of substantial fluctuations.