China Optical Optical Electronics Industry Association Light-Emitting Diode Display Application Branch
Abstract: This paper comprehensively analyzes the development of China's LED display application industry in 2017. It systematically explains the overall situation, products and markets, technological innovation, intellectual property rights and standardization, typical projects and application projects, and development trends, and comprehensively analyzes the development status of China's LED display application industry.
Keywords: LED display application industry development annual report
1 Summary
I. Industry Overview
In recent years, the LED display industry chain has developed rapidly, especially the new technology products represented by small indoor spacing and high density full color have been rapidly popularized and applied, driving the LED display application industry to maintain the high growth trend of the industry under the slowdown of domestic macroeconomic growth.
In 2017, within the national LED display application industry, the overall sales scale of the enterprise market was 42.8 billion yuan, a significant increase compared with the previous year. According to an industry report provided by third-party LEDinside, LED commercial display has a compound annual growth rate of 19% within five years.
According to a statistical survey by the LED Display Application Branch of the China Optics and Optoelectronics Industry Association, in 2016, the overall sales volume of the enterprise market in the national LED display application industry was 33.5 billion yuan, an increase of 28% in 2017 compared with 2016.
The small-pitch LED display market began to sprout in 2012. After rapid development in 2016 and 2017, the once sluggish LED display industry has been given new vitality and vitality. Small-pitch products have become a new growth point in the LED display industry. In 2017, the overall sales of indoor and outdoor small-pitch LED displays nationwide were approximately 8 billion yuan.
It is expected that indoor and outdoor small spacing will continue to grow at a double-digit rate within five years, with indoors first and then outdoor, with indoor scale being larger than outdoor.
Backbone enterprises and leading enterprises have strong development momentum, and the effect of "polarization, the strong will always be strong" is more prominent. Resource optimization and reorganization led by capital advantages and industry development have obvious impetus, and industry reshuffle is imminent.
As of the end of 2017, the key companies in the LED display application industry listed on A-shares are:
Main board: Alto Electronics
GEM: Leyard, Lianjian Optoelectronics, Unilumin Technology, Ledman Optoelectronics, Absen
New Third Board: Road Dongguang Optoelectronics, Aurora King, Yuanheng Optoelectronics, Lianchengfa, Qipu Optoelectronics, Xinyasheng, Yangbang Technology, Lingxin Vision, Jiuzhou Optoelectronics, Shenglong Co., Ltd., Hanwei Optoelectronics, Dianming Technology, Getron, and Bako
There are companies in the industry that continue to be acquired or reorganized by listed companies.
In 2017, nearly 60 LED display application companies in the industry had sales of more than 100 million yuan. According to incomplete statistics from the China Optics and Optoelectronics Industry Association, 19 companies in the LED display application industry had sales of more than 200 million yuan, of which 6 companies had sales of more than 1 billion yuan.
There are two companies with LED display sales exceeding 2.5 billion.
2. Market analysis
2 Overall Industry Situation
At present, the number of enterprises engaged in LED display application business across the country is estimated to be between 800 and 1,000, of which around 500 are of a certain scale and have certain technology research and development, production and engineering implementation capabilities.
As of the end of 2017, nearly 300 companies have joined the LED Display Application Branch of the China Optics and Optoelectronics Industry Association, basically covering leading companies and brand companies in the field of LED display applications in China. These companies focus on LED display products and are engaged in business activities related to LED display applications. They have professional product research and development capabilities, engineering design and construction capabilities, process design and manufacturing capabilities, etc. They are industry representative and are the backbone of China's LED display application industry.
In early 2018, the LED Display Application Branch of China Optics and Optoelectronics Industry Association conducted routine annual statistics on the production and operation of 83 member units in 2017. According to the survey, the total market sales of 83 member units in 2017 was 29.048 billion yuan. Based on this, the total market value of the national LED display application industry in 2017 is estimated to be 42.8 billion yuan.
Table 1 shows the overall changes in the national LED display application industry in the past five years. (Unit: 100 million yuan)
Figure 1 shows the sales growth changes of my country's LED display application market from 1998 to 2017. (Unit: 100 million yuan.)
my country's LED display application industry is mainly concentrated in North China and South China. The output value of these two regions has always accounted for about 76% of the national total. Shenzhen in South China has continued to maintain the main concentration of the LED display application industry, and its proportion continues to grow. Statistics in 2017 show that in the overall layout of my country's LED display application industry, the proportion of East China has declined, while other regions have basically remained the same.
Table 2 shows the distribution of the LED display application industry output value of member units by region in the past five years according to the statistics of the LED Display Application Industry Association.
Table 2: Regional distribution of LED display application industry in the past five years (incomplete statistics)
According to statistics, the scale of my country's LED display application industry is generally stable. There are about 48,000 employees nationwide, of which management personnel account for about 10%, scientific and technological personnel account for nearly 22%, and production workers account for about 50%. The overall size of employees has declined, product standardization and improvements in production automation have reduced the proportion of managers and workers, and the proportion of scientific and technological personnel in the small-pitch era has increased.
2.1 Enterprise Development
2.1.1 The development of large-scale enterprises shows "polarization, the strong will always be strong"
In 2017, according to incomplete statistics from the China Optics and Optoelectronics Industry Association, there were nearly 60 companies in the national LED display application industry with sales reaching 100 million yuan.
Table 3 shows the distribution of key enterprises with sales of more than 200 million yuan in various regions according to industry association statistics in 2017. Among them, those marked * are companies with a sales scale of 1 billion yuan.
Table 3 Enterprises with annual sales of more than 200 million yuan in the national LED display application industry in 2017
2.1.2 Healthy development of the industrial chain
In 2017, the industrial ecosystem of the LED display application industry developed healthily, and the development of enterprises in the upstream and downstream links of the industrial chain showed a good trend. The annual sales of Chitron North IC exceeded 1 billion yuan; Nova's professional display control system technology and service sales exceeded 750 million yuan. Yangbang and Lingxin also made great progress and successfully entered the New OTC Market; LED display chip manufacturers Sanan, Huacan, Qianzhao, Silan, etc. have all grown significantly; packaging device manufacturers, especially in the small-pitch field, such as Nationstar Optoelectronics, Everlight, Hongqi, Xida, Jingtai, Xinguangtai, Jingtaixing, Ledman Optoelectronics, and Meikale, have made innovative breakthroughs and grown rapidly.
2.1.3 Key enterprises pay more attention to and compete with channel construction
In 2017, from the perspective of optimizing resources and expanding the market, key enterprises continued to strengthen the construction of their own channels. Unilumin Technology continued to promote channel upgrades in domestic and overseas markets, continued to strengthen business development, and maintained continuous growth in operating performance. The king of Leyard channels is back, striking hard and striving to build a "multi-brand, multi-channel" cooperation platform. Companies such as Yangbang Technology, Jingtaixing, Huaxia Guangcai, Huajie Cailiang, and Runshang Lighting are also actively expanding their channels, and the engineering contractor alliance has been sought after by the industry for a while.
Original DLP, LCD wall sales channels such as MicroPort, GQY, Delta, and Cyli and display screen channels have begun to penetrate and integrate with each other. Enterprise channels such as Dahua and Hikvision in security have also joined our new channel battle.
2.1.4 Local associations and alliances are growing rapidly
Hubei Optoelectronics Association, Sichuan Display Engineering Alliance, Zhejiang Solid State Light Source and other industry associations also cooperate with our association to actively promote the orderly development of enterprises in the local market and strengthen the promotion of standards.
2.1.5 A bridge for government investment promotion
The association, together with the Engineering Contractors Alliance and local governments, actively carries out enterprise promotion activities to help the government attract investment and help enterprises enjoy national preferential policies while expanding their business territory. Currently, the association is working with Shandong Xintai, Anhui Bengbu, Liaoning Anshan, Zhejiang Shaoxing, Jiangxi Fuzhou, Guizhou and other places.
2.2 Capital Markets and Listed Companies
In the capital market: As of December 29, 2017, the volatility of the Shanghai Composite Index was 13.1%, the lowest level in history. 2017 was a year in which the concept of value investing gradually returned. Blue-chip stocks, white horse stocks, and cyclical stocks performed well, and star stocks continued to emerge. A group of blue-chip stocks represented by Kweichow Moutai, Gree Electric Appliances, and Hikvision performed well, and value investing became a trend. The performance of small and medium-cap stocks was sluggish, and the market structural differentiation was obvious. Small-cap stocks with unsatisfactory performance were abandoned by funds, and the center of gravity of their stock prices continued to shift downward.
According to Tonghuashun statistics, excluding new stocks and long-term suspended stocks, among the 3,011 stocks that can be counted, 665 stocks had positive gains in 2017, accounting for only about 22%; 519 stocks outperformed the market, accounting for less than 20%. In 2017, there were 2,339 stocks with negative growth, accounting for nearly 78%, of which 169 stocks had a decline of more than 50%, mainly concentrated in the computer, electronics, electrical equipment, machinery and media sectors.
From the perspective of the entire LED sector: the effect of "polarization, the strong will always be strong" is even more prominent. Leading companies driven by performance are favored by investors, and there are listed companies with a market value of 100 billion in the LED sector; while small and medium-sized LED listed companies with poor performance and keen on concepts have seen their market value cut in half, and investors clearly choose to vote with their feet. In terms of revenue: in the 2017 LED industry revenue rankings, Dongshan Precision ranked first among the revenue rankings of A-share listed companies in the LED industry in 2017 with revenue of 15.39 billion yuan; Sanan Optoelectronics' 2017 full-year revenue was 8.394 billion yuan, ranking second; Mulinsen's 2017 full-year revenue totaled 8.169 billion yuan, ranking third; Leyard's operating revenue was 6.471 billion yuan, ranking fourth.
Among them, Sanan Optoelectronics achieved sales revenue of 8.394 billion yuan, operating profit of 3.856 billion yuan, and net profit attributable to shareholders of the parent company of 3.164 billion yuan. Compared with the same period last year, sales revenue increased by 33.82%, operating profit increased by 82.50%, and net profit attributable to shareholders of the parent company increased by 46.04%. The market value is 102.57 billion yuan, ranking first in the LED sector with a market value of more than 100 billion.
Table 4: List of operating performance of upstream and midstream companies in the LED industry in 2017
Figure 5: List of operating performance of 6 listed companies in LED display applications in 2017
Figure 2: Changes in market value of listed companies in LED display applications in 2017
From the perspective of capital operation: the framework of the multi-level capital market in the LED sector has basically taken shape. Take the downstream LED display application sector as an example: the Shanghai and Shenzhen Stock Exchanges have six leading companies: Leyard, Lianjian Optoelectronics, Unilumin Technology, Alto Electronics, Absen and Lehman; the New Third Board of the Beijing Stock Exchange also has powerful companies such as Yuanheng Optoelectronics, Lianchengfa, Xinyasheng, Foshan Qingsong, Huaxia Guangcai; among unlisted companies, Shanghai Sansi, Qianli Jucai, etc. should not be underestimated, so that companies at different stages of development can directly or indirectly obtain financing from the capital market.
Table 6: Performance of LED display application companies listed on the New Third Board in 2017
From the perspective of major reorganizations of listed companies, industrial mergers and acquisitions have always been the main theme of mergers and acquisitions of listed companies. As a means of seeking extensional development, industrial mergers and acquisitions not only profoundly change the connotative growth of the listed company group, but also change the industrial structure of China's capital market. In industrial mergers and acquisitions, horizontal integration and diversification strategies are the main ones. Take Leyard, the downstream LED display application sector, as an example: Leyard was listed on the A-share GEM on March 15, 2012. Since its listing six years ago, all the company's employees have made great achievements through hard work. The main business has expanded from a single LED display business to multiple areas of integrated development of audio-visual technology and culture such as display, landscape lighting, new cultural tourism formats, and VR experience.
However, as business maintains rapid growth, operating cash needs are huge, and some companies have risks of insufficient cash flow and accounts receivable; as mergers and acquisitions progress, management risks arise from scale expansion; changes in international policies will bring about changes in the business environment, especially recent changes in Sino-US trade policies, which have caused significant fluctuations in the stock prices of listed companies in the industry.
Looking back on 2017, the capital market was turbulent, regulatory policies were unpredictable, and the exchange rate fluctuated violently. The entire LED sector showed a trend of differentiation, and this situation is expected to continue.
3. Products and Market
3.1 Product Composition
3 Products and Market
3.1 Product Composition
The development of LED chip manufacturing and packaging technology and the continuous progress of electronic information technology have promoted the rapid development and changes of my country's LED display application products and market in recent years. The product composition is becoming increasingly perfect and the application market is constantly expanding. According to a statistical survey of 83 member units by the LED Display Application Industry Association, among the total sales of 29.048 billion yuan in 2017, the sales of display products were 18.416 billion yuan, accounting for 63.4% of the total sales; the sales of LED lighting and other LED display application products were 10.632 billion yuan, accounting for 36.6% of the total sales. This distribution pattern has changed slightly from the past.
In terms of display product category composition, LEDs can generally be divided into two categories: general-purpose displays and non-universal displays. The specific varieties of each type of product are very rich.
General display products have formed a complete series of indoor and outdoor standardized LED display products. The production of main products has basically realized automation. The production process, technology and quality control of plug-in and surface-mount products have reached a high level. Product reliability has been steadily improved, and the product has good versatility. Among non-general display application products, special-shaped LED display products, special display engineering, lighting display engineering products, etc. continue to innovate and develop, and product types are flourishing and becoming the mainstream products in the field of modern information display. Overall, general-purpose LED displays account for about 83%, and non-general LED display products account for about 17%.
According to the statistical survey of the LED Industry Association, due to the continued explosive growth of small-pitch products, especially indoor small-pitch products, the situation in which indoor and outdoor display products accounted for half of the market changed in 2017. In 2017, of the total national LED display product market, indoor LED displays accounted for 64%, and outdoor LED displays accounted for 36%. The market share of indoor display screens exceeded that of outdoor displays.
3.2 Market Development
3.2 Market Development
In 2017, the LED display application industry was in an overall economic downturn:
A. The impact of technological innovation on the market:
Relying on the explosive increase of small-pitch LEDs, the overall growth trend has still been achieved. With the further improvement of small-pitch display technology, the pattern of indoor small-pitch LEDs has changed. The mass production capacity of batch channels has dropped rapidly from P2. In the field of COB, this will bring qualitative changes to the entire LED industry chain, and future industry divisions may undergo huge changes; in addition, while the current COB technology is not yet fully mature and the "dead pixel rate" of traditional SMD cannot be well controlled, all-in-one SMD technology has quietly entered the entire industry and has quickly resonated with LED manufacturers. Perhaps it will become the mainstream trend under P1.2 or P0.X in the next 2 or 3 years. The fields covered by these methods have little overlap, and they have a very good guiding role in the segmentation of the LED industry.
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