LED industry investment boom coming to see the red yellow downstream selection leading"

Currently listed companies have joined the LED investment tide, due to wafer and chip profits accounted for nearly 70% of the whole industry chain, to buy MOCVD equipment to enter the upstream epitaxial wafer and chip field therefore become the main direction of LED investment.

Domestic listed companies, Sanan Optoelectronics (600703) has ordered 107 units, de Ho Runda (002005) ordered 130 units, changelight (300102) ordered 23 units, Silan (600460) ordered 6 units,

600460) ordered 6 units, only the listed companies on the order of the 266 units, and in 2009 the country has installed MOCVD machines, but only 150 units, but the number of.

The current Chinese market for LED production equipment MOCVD investment preference is consistent with the world, mainly blue green LED, and the four listed companies in the only dry photoelectric purchase all red and yellow LED MOCVD.

We judge, with the global blue green LED production capacity has been released twice, there is a substantial reduction in the possibility of blue green LED chips. The red and yellow LED equipment investment in the future to maintain the basic stability, the possibility of red and yellow LED chip substantially lower than the blue and green LED chip, so we recommend investors to focus on the main products of red and yellow LED listed company changelight.

From the downstream packaging applications in the field of business, we believe that the size and technical advantages and to provide raw materials for packaging applications company is preferred.

Price is a major obstacle to large-scale promotion of LED, especially for ordinary home lighting. However, with the technological upgrading and expansion of production capacity, LED is expected to fall to the generally accepted price, which provides the conditions for large-scale promotion of LED applications.

In this context, LED downstream applications will explode, related packaging applications listed companies will benefit from it, including nationstar (002449), Zhejiang sunshine (600261), Fangda group (000055), Han's laser (002008), FSL (000541) etc..

Although the China package of nearly 2000 enterprises, but the enterprise scale is smaller, we believe that with the large-scale application of LED, packaging enterprises is expected to appear HENGQIANG situation, packaging companies have the scale and the advantages of the patented technology continues to grow, we recommend investors to focus on domestic leading LED packaging companies nationstar, the company is one of the top three domestic LED packaging companies and the largest SMD LED packaging companies.

In addition, the provision of raw materials related to listed companies for packaging applications also has a considerable competitive advantage, the company production of LED connector Deren electronic (002055) and LED with high thermal conductivity of copper production enterprises GSST (600183). The two companies are all imported products are imported, almost no domestic production company, the future with the LED application scale continues to expand, the extent of its benefit is expected to be higher than the general packaging applications.