In 2015, the LED industry went very hard, LED companies ran, closed down, mergers and acquisitions, restructuring, the entire industry is constantly adjusting and shuffling. What is the development prospect of the LED industry in 2016?
Industry gradually picks up
In 2015, large-scale mergers and acquisitions and bankruptcies swept the entire LED industry. More than 4,000 LED companies fell in the fierce market competition. For a time, the "cold winter theory" shrouded the entire LED industry in 2015.
Zhang Xiaofei, dean of the High-tech LED Research Institute, said that the entire LED industry was severely homogenized last year, the price war was fierce, and the polarization of the industry intensified, leading to a wave of mergers and acquisitions and a drastic reshuffle in the LED industry.
"LED companies have integrated mergers and acquisitions, and they are mainly listed companies. The scale of funds used for mergers and acquisitions ranges from a few tens of millions of yuan, several hundred million yuan to several hundred million yuan." He Zhenghua, senior researcher of China Investment Consulting, told this Reporter.
According to statistics from the Institute of Advanced Industrial Research LED Research, as of November 2015, China's LED industry mergers and acquisitions amounted to 40.8 billion yuan, 53 mergers and acquisitions, compared with the total amount of 6 billion in 2014, an increase of 580%. Among them, 39 cases of over 100 million mergers and acquisitions, accounting for 73.6%. In addition, the number of LED companies decreased by more than 4,000 in 2015, and the number of companies in 2014 was as high as 20,000.
However, the industry believes that after the baptism in 2015, the dominant companies in the LED industry will usher in spring in 2016.
The latest research report of Founder Securities pointed out that the LED industry has a long industrial chain, including upstream epitaxial wafer growth, midstream chip manufacturing, downstream chip packaging and application fields. It is expected that the annual compound growth rate of the LED market will remain at 2015-2017. More than 30%, by 2017, China's LED market will reach 748.5 billion yuan, and the market potential is huge.
At present, there are still too many SMEs in the LED industry, industry concentration is not enough, industry resources are scattered, over-reduction, backward production capacity, etc., industry transformation and upgrading is imperative. It is worth noting that under the situation of further adjustment of the LED industry, the superior resources will be further concentrated in the industry, and the industry will gradually show the situation of “bigger Evergrandeâ€.
He Zaihua believes that frequent M&A activities between industries will promote domestic enterprises to go overseas, while constantly learning foreign advanced technology and improving the technological content of products, but the domestic LED industry is highly competitive, coupled with the future LED market demand is saturated, short-term It is difficult to reduce the remaining capacity, so LED companies need to reposition, shift the direction of development, find new growth points, and accept severe challenges.
Small spacing enters the outbreak period “With the continuous development and maturity of small spacing, small-pitch LED products will enter a broader indoor application market, enterprises will have a wider range of development space, and with the growth of small-pitch LED capacity, Products will be further improved, product prices will also be lower, and more acceptable to consumers." He Zaihua told this reporter.
At present, the display market is very mature and the competition is fierce. Under the situation that the growth rate of traditional display business is declining, the continuous growth of small-pitch LED production capacity has become the biggest bright spot.
It is understood that the outbreak of LED small-pitch products has greatly increased the performance of A-share listed companies such as Liad, Zhouming Technology, Alto Electronics and Lianjian Optoelectronics. Liard's 2015 annual report shows that the company's LED small-pitch performance is brilliant, LED small-pitch achieves high-speed growth (more than 70% compound growth in three years), and LED small-pitch global market share is more than 50%.
Zheshang Securities' latest research report believes that since the official launch of LED small-pitch products in 2012, the company's performance has also doubled with the explosive growth of the industry. In 2015, orders reached 1.16 billion, an increase of 73%. Based on the advantages of LED small pitch for DLP technology, the high-end splicing market will gradually be occupied by small pitch. At the same time, LED small pitch will be the fastest and most determined fine-molecular industry for LED downstream applications.
According to the industry, from the perspective of industry trends, with the decline of raw materials such as lamp beads and advances in technology, the penetration rate of small-pitch products in the commercial market will gradually increase.
Liard said on the investor interaction platform on March 23 that this year's small interval entered an outbreak. However, Li Jun, chairman and general manager of the Liard Group, said that due to the high technical threshold of LED small-pitch TV, after reaching a certain scale, the products of different companies will have a big gap in stability and quality.
Try to diversify
Affected by overcapacity, the traditional LED industry is growing slowly. Facing the new situation of the industry, some enterprises are also focusing on other fields while trying to diversify their development. For example, Liard's layout of the cultural industry, Lehman shares in the Nuggets sports industry, Maoshuo power investment 480 million photovoltaic grid-connected power generation projects, Aoyang Shunchang plans to invest in integrated circuit chip projects.
In the case of Eliyad, after the acquisition of Lifeng Culture and Jin Lixiang, the field of cultural tourism performance began to be fully integrated. At the same time, Liard strengthened the R&D and introduction of VR technology in the commercial field, invested in the content production company, integrated the cooperation resources of Black Crystal Technology, Digital Tiger Image and Dimenco of the Netherlands, focusing on cultural and entertainment parks, cultural and technological experience museums, performing arts fields, and targets. Directly refers to the creators of the VR commercial field.
“Ryder is no longer a traditional manufacturer of audiovisual products.†Li Jun stressed at the recent Liard Group strategy conference that Liard’s future business strategy will implement “cultural technology + financeâ€, making Liard a Cultural technology financial operators, audio-visual product providers, audio-visual solution providers, audio-visual cultural experience operators, audio-visual cultural industry chain investors, "Lyed will become a global audio-visual culture multinational group under the guidance of the new strategy. ."
How to achieve this kind of strategic upgrade? Li Jun revealed that, first of all, Liard will upgrade the technology products from “hard†to “soft†by increasing the proportion of software and services. Secondly, through the overall solution of audio-visual applications, Upgrade Liard from traditional small integration to large integration; once again, through the operation of audio-visual cultural experience projects and investment in audio-visual cultural content industry, from "technology + culture" to "cultural technology +", and finally upgraded to "cultural technology + Finance"; Finally, through the capital operation, the Liard Group was upgraded to "100 billion Liad."
He Zaihua believes that Liard has developed a development strategy of “cultural science and technology + finance†and created a multinational group of audio-visual culture through asset mergers and acquisitions. "Ryder will accelerate the expansion of overseas markets, promote the continuous improvement of production technology of domestic enterprises, and actively deploy VR, realize the application of LED small-pitch display technology and VR technology integration, promote the establishment of VR industry chain, and drive high-speed enterprise performance. development of."
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