After the price war in the past two years, the price of major products in the LED industry has continued to rise since the second half of 2016. The industry's business climate has continued to improve, and the performance of upstream chip and midstream packaging industry companies has improved significantly. According to the statistics of Wind, more than ten LED industry companies have announced the 2017 interim results forecast, and the proportion of pre-increased (including pre-increased, slightly increased, renewed and turned losses) reached 100%. Competition pattern changes Since 2015, the subsidy for the addition of MOCVD equipment (one of the main production equipment for LED chips) has been lifted, which has increased the barriers to entry for the industry. A large number of small and medium-sized enterprises have gradually withdrawn from the price war, LED chip production capacity has shrunk significantly, and industry concentration has gradually increased. Data show that in 2016, the top ten LED chip manufacturers accounted for 77% of the market share, revenue of 10.7 billion yuan, an increase of 15%. Among them, the top three manufacturers of Sanan, Jingdian and Huacan have a market share of 50%; Sanan is in a unique situation, accounting for nearly 30% of the market. Judging from the new capacity in 2016, the new capacity of the LED chip industry is mainly from large manufacturers, and the industry is gradually moving towards oligopoly. Under this pattern, the impact of the price increase of leading enterprises on the market is very important. In terms of downstream demand, small-pitch LED applications continue to expand. At the same time, thanks to the complete decommissioning of incandescent lamps, LEDs have become the mainstream light source for general lighting. It is estimated that with the increase of downstream lighting demand by more than 20% and the demand for small spacing, the annual demand for new LED chips will increase by 10 million. In terms of cutting-edge technology, the industry is optimistic about the increase brought about by the maturity of technologies such as Micro LED and LiFi, and related manufacturers are actively deploying this field. From the perspective of global competition, in recent years, with the continuous reduction of costs, domestic LED products have become more competitive globally, and overseas customers have turned to purchase more chip products from the Chinese market. Guoxin Securities analysts believe that global LED manufacturing has a tendency to shift to the Chinese market, and domestic companies have possessed high-quality process control and cost management capabilities. Analysts expect that as industry concentration increases and downstream demand expands, industry supply and demand will continue to improve. LED chip prices will continue until the third quarter of this year, and lead the price increase in the middle and lower reaches. Overall improvement in performance According to Wind data, as of the close of June 5, 11 industry companies issued interim results announcements, with a pre-happiness ratio of 100%. Overall, upstream chips and midstream packaging companies have the highest net profit growth rate. In the first quarter of this year, among the 43 LED listed companies, 40 companies saw a year-on-year increase in revenue, 35 net profit increased year-on-year, and 27 companies with net profit growth exceeding 30%, accounting for more than 60%. In terms of upstream chips, Huacan Optoelectronics, Dehao Runda and Ganzhao Optoelectronics are expected to slightly increase their interim results, continue to profit and turn losses. Among them, Dehao Runda expects to achieve a net profit of 12 million yuan to 20 million yuan in the first half of the year, an increase of -25% to 25%. Ganzhao Optoelectronics expects to achieve a net profit of 80 million yuan to 100 million yuan in the first half of the year, an increase of 1395.6%-1719.5%. Ganzhao Optoelectronics said that since the second half of 2016, some product prices have risen and the main business has improved. In addition, the company's blue-green project entered a stable period after two years of production, and the unit cost reduction led to a substantial increase in chip gross margin; the company expects chip sales to reach a record high in 2017. In the midstream package, both Guoxing Optoelectronics and Mulinsen expect the interim results to be pre-increased. Among them, Guoxing Optoelectronics expects net profit of RMB 123.01 million to RMB 168.6 million in the first half of the year, an increase of 30%-70%. Mulinsen expects to achieve a net profit of 260 million yuan to 370 million yuan in the first half of the year, an increase of 70.4%-116.2%. For the main reason for the significant year-on-year growth in performance, Mulinsen said that the prices of major products were stable, the new capacity of the fundraising project was gradually released, and the scale effect was significantly improved, which led to a further decline in the unit cost of the products. On the downstream side, both Tailong Lighting and Debon Lighting expect a slight increase in net profit in the first half of the year. It is estimated that net profit will be 12 million yuan -13.5 million yuan and 110 million yuan -140 million yuan respectively, up 6%-20% and 5.21% respectively. %-29.2%. Stainless Steel Wire Rope,Ss 304 Welding Filler Wire,Stainless Tig Wire Rope,304 Stainless Steel Wire Rope ShenZhen Haofa Metal Precision Parts Technology Co., Ltd. , http://www.haofametal.com