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LED lighting products have become the development direction of new light sources

May 08, 2023

The LED sector has not changed much today, and the current price is close to 1. Among them, Dongjing Electronics, Zhaochi, and Lianjian Optoelectronics have all increased by more than 4.
Analyst Lin Shiwen believes that the LED sector will continue to explode in the future, because the fundamentals of the industry have been greatly improved. In fact, since the beginning of the year, the LED sector has experienced a wave of rising, stock price force, but also caught up with the annual report, the quarterly disclosure period. As LED companies' orders continue to grow, corporate stock prices have also rebounded at a low level. Overcapacity is slowly changing, and industry earnings growth is obvious.
LED lighting products have become the development direction of the next generation of new light sources, and the effect of energy saving and emission reduction is increasingly significant. In 2013, the scale of domestic LED lighting was 260 billion yuan, a year-on-year increase of 28. By 2015, the penetration rate of LED lighting will reach 60, reaching 80 in 2018. The replacement of incandescent lamps by LED lighting has led to a surge in its penetration rate. After this year, the United States, the European Union, Japan and China will completely ban the sale of incandescent lamps other than 15 watts, and the substitution effect brought by them is very huge. Experts predict that the global LED market will grow at a compound rate of 40 or more in the next seven years.
With the accelerated growth of the LED market, the cost per lumen of LEDs has dropped significantly, and it is already very close to the cost of incandescent lamps. The decline in the cost of LED lighting has further increased demand. The LED lighting core industry chain includes LED equipment and supporting, substrate, epitaxy, chip and downstream packaging and applications. Among them, downstream packaging and application output accounted for the largest proportion, including Qinshang Optoelectronics, Sunlight Lighting, Lehman Optoelectronics and other stocks.

The rebound in the LED industry will bring about an improvement in the valuation of related stocks, which will drive the stock price to strengthen, so it is worth keeping a close eye on.

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