LED screen market further picks up this year

"The LED screen market will pick up further this year" The LED screen market is picking up. Judging from the price increase last year, the supply of chips in the LED screen market this year will be in short supply. The terminal advertising consumption market will further promote the development of the LED screen industry. LED screens are the most widely used today. One of the wide range of display devices, hotels, banquet halls, gates, stations, squares, etc. are all standard LED screen products. 1. The supply and demand relationship of LED screens has changed in recent years. Overall, the entire industry will be in short supply. 2. Technological innovation, the application of LED screens in new fields will lead the industry to start a new round of growth.

3. The concentration of the upper, middle and lower reaches of the industrial chain will further increase, and outdated production capacity will be eliminated, and the seller will be in a strong position. Upstream LED screen chip LED screen industry chain supply-side reform has been relatively sufficient. In 2016, the top ten manufacturers accounted for 77% of the market, and the top three were Sanan (29%), Jingdian (13%), and HC Semitek (8%). . High industry concentration can effectively curb capacity expansion, enterprises have strong bargaining power, and at the same time improve specialized production efficiency.

In the future, the concentration of the LED screen chip industry is expected to continue to increase and form an oligopoly, forming a market where the strong will always be strong. From a global perspective, with the basic completion of destocking in 2016, the demand for smartphone stocking is strong under the leadership of Apple in 2017, and my country has formed a complete IC industry chain from design, manufacturing, packaging and testing to terminals. With the support of the capital market platform, we usher in the best development opportunities. In 2017, the market characteristics of the industry's short supply were obvious.

It is expected that the bargaining power of chip companies will increase in the future, and leading companies will stabilize their income, which in turn will help increase the market concentration of the chip industry. Leaders: Sanan Optoelectronics, Jingdian Technology, Huacan Optoelectronics, Aoyang Shunchang (9.48, 0.27, 2.93%), etc. Since 2015, the packaging of midstream LED screens has intensified market competition among packaging companies, and the growth rate of corporate net profits has continued to decline. Enterprises have begun to focus on the research and development of LED screen packaging technology and market development. At present, EMC packaging and CSP chip-level packaging have become trends.

Advanced packaging technology drives the development of midstream. Compared with 2015, the price of LED screen packaging in 2016 tends to be stable. LED screen packaging companies in the midstream will gradually enter the stage of bottoming out, and the profitability of major manufacturers will gradually improve. Leading manufacturers: Mulinsen (0.00, 0.00, 0.00%), Nationstar Optoelectronics (13.34, 0.16, 1.21%), Hongli Zhihui (12.14, 0.05, 0.41%), Xiamen Xinda (14.59, 0.09, 0.62%), etc. . Downstream LED screen applications In terms of screen applications, the global LED screen market continued to grow rapidly in 2016, and LED screen light sources are expected to fully replace all traditional light sources in the next 10 years.

With the continuous improvement of light efficiency, the cost of chips and other consumables has dropped, and the scale effect has driven the overall cost of lamps to continue to decline. In the next 10 years, it is expected to completely replace all traditional light sources. In terms of the small-pitch LED screen display market, with the sharp drop in cost and the continuous improvement of display effects, the small-pitch LED screen display industry is showing explosive growth, and the supply exceeds demand. The market for small-pitch LED screens to replace DLP and other splicing screens is in full swing.

Leading lamps and lanterns: Sunshine Screen (7.510, -0.04, -0.53%), Foshan Screen (9.57, -0.02, -0.21%), Sunshine Screen leading stock analysis Sanan Optoelectronics (600703) has been moving continuously recently, and completed the second phase of employee holding The company plans to purchase nearly 91.7 million shares, deploy chip materials, compound semiconductors, and sign the "Development Financial Cooperation Agreement" with China Development Bank. The company focuses on the layout of LED screen chips, integrated circuits and other fields to accelerate overseas mergers and acquisitions and capacity expansion. Aoyang Shunchang (002245) has a total production capacity of 800,000 pieces per month after the completion of the second phase this year. At the same time, Mulinsen strategically increased capital to invest in its subsidiary, helping Aoyang to further consolidate its leading position in LED screen chips. Mulinsen (002745) has continued to expand its packaging capital. It has increased capital by 500 million Australian dollars and invested 5.5 billion in LED screen projects. At the same time, it has increased capital or acquired multiple screen companies, and its production capacity will exceed 35,000 KK/month after the expansion of packaging plans in the future.

Nationstar Optoelectronics (002449) is a leading company in the field of packaging, with outstanding advantages in the small-pitch market. The company started from LED screen packaging, and has comprehensively laid out the LED screen industry chain, involved in upstream chips, midstream packaging and downstream applications. Some analysts believe that NationStar currently cares more about the market, and the price increase will be partly transmitted downstream, but the gross profit margin will be further compressed for the sake of the market.

Hongli Zhihui (300219) will further deepen the field of screen packaging by virtue of its cost-effective products, and recently launched the employee stock ownership plan and the chairman's shareholding increase plan, demonstrating the management's firm confidence in becoming bigger and stronger. Since Foshan Smart (000541) went public, its main business has been the production, research and development and sales of screen products, and its products mainly include traditional screen products and LED screen products. The 3 quarterly results surged by 281%. In the first half of 2016, the LED screen revenue of Sunshine Screen increased by 40%, and the sales volume increased by 60%. It is expected that the LED screen will further expand in the whole year.

Sunshine Screen (600261) is affected by the cycle. The company’s revenue growth rate in a single quarter is average, but its profitability has improved significantly. The gross profit margin increased by 3.92 percentage points year-on-year, and there was still a 24% growth after deducting non-profits. In the long run, the company will fully benefit from the increase in industry concentration, the expansion of the revenue-cost gap and the favorable depreciation of the RMB. In addition, the company will increase incentives, and the efficiency will continue to improve, and profits are expected to maintain rapid growth. Today’s overview of the LED screen sector: In 2014, the number of LED screen companies reached more than 20,000, but it dropped by 20% after only one year, and 4,000 companies withdrew from the market.

In 2015, China was in a "period of social transformation", and GDP growth fell below 7%, the lowest growth rate in 25 years. The LED screen industry has experienced fierce competition such as overcapacity, price wars, and product homogeneity. Large companies have further expanded their scale through mergers and acquisitions, while small and medium-sized enterprises are struggling to survive. In 2016, there were some signs of recovery in the LED screen industry.

In 2017, Sanan issued a price increase order on the first day of construction, and the LED screen industry staged a "price increase carnival", which made people excited. From the perspective of the LED screen industry cycle, after the deep integration of the industry in 2015 and 2016, the supply-side reform has been relatively sufficient. In 2017, the LED screen will usher in an inflection point of prosperity. .