Lighting energy saving investment LED is the right time



The high growth of the LED industry is unstoppable. Lighting electricity accounts for about 12% of China's total electricity consumption. Compared with incandescent lamps and fluorescent energy-saving lamps, LED light sources have significant advantages in energy saving and environmental protection. Under the pressure of carbon emission reduction and the support of national policies, the high growth of the LED industry in the next few years has become a fixed trend.
Medium and large size backlights and room lighting are the two areas with the greatest potential for future development. According to DisplaySearch, global LCD TV shipments will reach 171 million units in 2010, up 22% from 2009, and LED backlight penetration will increase from around 2% in 2009 to around 15% in 2010; large-size NB LEDs The penetration rate will also increase from 60% in 2009 to 80% in 2010, and will be fully converted to LED backlights by 2012. In the general lighting market, commercial store lighting is widely optimistic due to the long time of use of light sources; according to relevant experts' predictions, with the decline of LED lighting costs in the future, LEDs entering the room lighting are just around the corner, and the market space in the future is extremely broad.
The highest level of upstream technology is the key development area for the future of the country.
In the LED industry chain, the upstream substrate materials and epitaxial wafers have the highest production technology, followed by chip manufacturing. At present, the advantages of China's LED industry are mainly concentrated in the packaging of relatively low technology content. According to the industrial development plan released by the country in October 2009, the development speed of domestic upstream substrates and chips will obviously exceed the downstream in the next five years. We believe that only companies with technological and scale advantages can win an active position in the future competition.
Focus on the company: Sanan Optoelectronics (recommended), Lianchuang Optoelectronics (no rating), Tianfu Thermal Power (cautiously recommended).
Risk warning: market competition exacerbates risk; new technology replaces risk.

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