LED lighting demand booms

The continuous growth in lighting demand has driven the LED industry into a one-way rising channel. With the further restrictions on the use of incandescent lamps and the decline in the price of LED lighting products, LED lighting has ushered in the opportunities for rapid development, combined with the data of major manufacturers and research institutions, it is expected that the shipment of LED lighting will exceed 100% growth. Related companies are also expected to receive more than expected earnings.

LED business revenue in Taiwan, China has always been an indicator of the LED industry boom. Although December was the traditional off-season, chip revenue in the LED industry chain increased by 59% year-on-year in December, and overall package revenue was 53%. Major companies such as Yiguang, Lunda, and Jingdian have even more favorable revenues.

Among the LED packaging giants, Everlight’s December revenue was NT$2.26 billion, up 70% year-on-year, benefiting from orders for lighting and backlight sources. The company expects shipments in the first quarter of this year will continue to grow. Lunda Electronics benefited from an increase in orders for notebook computers, flashlights from Korean mobile phone makers, and TV backlighting. In December, revenue was NT$1.097 billion, a 5.84% decrease from the previous month in November and a year-on-year increase of 55%. Among chip manufacturers, Jingdian’s revenue in December reached NT$2.047 billion, a slight decrease of 1.36% from the previous quarter and an increase of 78.8% year-on-year.

The characteristics of LED lighting products are outstanding. From the perspective of the recent technological development, the luminous efficiency of light sources can reach more than 200 lm/w. At the same time, the market price of terminal lighting products has continued to decline, and the products of companies such as Osram and Corey have been reduced to around US$10, while the price of energy-saving lamps of the same brand is about US$5, taking into account the great difference in service life. The actual use cost of LED lamps is cheaper than ordinary energy-saving lamps.

From the perspective of the LED industry chain, it mainly consists of LED raw materials (MO source, luminescent materials, etc.), LED chips, LED packages and LED lamps. From the perspective of benefit, the first benefit is the downstream channel. Lighting manufacturers, such as Sunny Lighting and BDO Runda, are followed by LED chips and packaging. With the growth of demand, capacity utilization has risen rapidly, and prices of LED raw materials have also been boosted. For example, Nanda Optoelectronics MO source and Keheng shares rare earth luminescent materials.

From the point of view of the function division, LED lighting and LED backlight are mainly divided into LED lighting. The industry is more optimistic about the development of LED lighting. The recent status of Ruifeng Optoelectronics has also verified this judgment. According to the company's management, based on the stabilization of the LED LCD TV market, the company has increased its efforts in LED lighting and achieved a corresponding increase in sales and profits.

From a growth point of view, as the penetration rate of LED backlight in the panel and smart terminals has exceeded 90%, the future growth of backlight will mainly come from natural growth, and the growth of LED lighting will usher in the penetration rate and natural growth. "Daves double click".