In 2015, the competition in the LED lighting industry intensified and the price fell. In 2015, upstream epitaxial chips, midstream packaging devices and downstream lighting application companies all felt that they were living in the “deep watersâ€, while the display companies maintained a steady growth overall in 2015. The double growth of revenue and net profit has become the "normal state" of key display companies.
Judging from the published annual results disclosed by the listed companies in 2015, Liard, Lianjian Optoelectronics and Chau Ming Technology have achieved double growth in revenue and net profit. Among them, Liard’s net profit growth has more than doubled, ranking first.
The reason is that, in addition to the rapid growth of small-pitch display in recent years and the rapid development of mergers and acquisitions by display companies, the maturity of the display market is high, and the market share is gradually becoming one of the important reasons.
“LED display industry is in the reshuffle stage. With the slowdown of domestic economic and economic growth, all walks of life are responding to the national call and entering the transition period. The most significant LED display industry is the surge of mergers and acquisitions. Many companies promote the brand through mergers and acquisitions. Huaneng machine.†Huang Zhiyong, deputy director of Powerful Color Marketing Center, told Gaogong LED. Looking at the display industry in 2015, it is clear that the Matthew effect of “stronger and stronger, weaker†is emerging. The advantage resources are more and more inclined to the excellent enterprises. With the further reshuffle of the market, the future is full of opportunities and challenges.
In the case of Eliyad, in July 2015, Lifeng Culture was merged into the consolidated statement and incorporated into the operating income of 297 million yuan. In August 2015, Jin Lixiang was merged into the consolidated statement and incorporated into operating income of 102 million yuan. In particular, the addition of PLANAR, overseas orders reached 552 million yuan, an increase of 60.46% over the same period last year; in December 2015 PLANAR incorporated business income of 128 million yuan.
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 now very mature. In the past two years, a large number of display companies with a production value of less than 200 million yuan have closed down a lot, and market share has become more and more concentrated." GGII senior analyst Li Shengfa said that with the company With the reduction in quantity, the price competition in the display field is relatively small compared to the lighting industry, and the price of conventional products is more stable.
This view was also endorsed by Cai Weijie, deputy general manager of Fushun Optoelectronics Display Division, a subsidiary of Snowlight (002076.SZ). “Overall, the demand for the display market is still very large, especially for high-definition high-density products.â€
Cai Weijie said that with the upgrade of technology and the decline of material costs, the powerful display companies have maintained a high growth last year, especially the mid-to-high end products prices and profit margins are relatively stable. In the future, companies without core technologies will become more difficult and the market share will be more concentrated in enterprises with resources and core technologies.
According to the incomplete statistics of Gaogong LED, since 2013, many LED display companies including Shifang Optoelectronics and Haobo Optoelectronics have closed down and bankrupted. The output value of most of them is below 200 million yuan, but there are also many like big eyes. Enterprises with an output value of more than 500 million yuan.
Gaogong LED will do more in-depth and meticulous research on the display market in the near future. For more content, please pay attention to the display and focus on follow-up reports!
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