LED subsidy policy is expected to be launched soon

In the recent period, the LED sector has seen a continuous correction, investors will inevitably have doubts about the investment prospects of the industry, and doubt that the industry will continue to decline. The research report released by Ping An Securities pointed out that the source of the periodicity of the LED sector was mainly due to seasonal fluctuations in the backlight market. From this year on, the source of the industry's prosperity has been the general lighting market. Affected by upstream chip technology and rapid price decline, the price gap between LED lighting and traditional lighting products is gradually narrowing, and the cost-effective advantages of downstream LED lighting products have emerged. In the future, as the penetration rate of LED lighting continues to increase, the industry will have a solid support. The subsidy policy is expected to be launched. The subsidy policy for energy-saving lamps from 2008 will be completed by the end of this year. At present, the National Development and Reform Commission, the Ministry of Finance and other departments are studying the policy of financial subsidies to promote LED lighting products. The form and intensity of subsidies will be based on the promotion of energy-saving lamps, combined with the characteristics of LED lamps. Make the appropriate adjustments. As home lighting considers the cost of first purchase more, there is still a gap between LED and energy-saving lamps. The introduction of future subsidy policies will greatly accelerate the comprehensive replacement of traditional lighting for LED lighting. Since energy-saving lamps contain mercury, there are many environmental concerns. At present, many local governments have cancelled subsidies for energy-saving lamps, and LED cost-effectiveness and environmental protection effects will gradually be reflected in the future. The industry has been favored by many brokers or ushered in medium and long-term investment opportunities. CITIC Securities believes that at present, although end consumers are still purchasing a large number of traditional lighting products, dealers have begun to reduce the proportion of traditional light source purchases. From the perspective of output value, it is estimated that the LED lighting market in the first half of the year will account for 25~30, while the second half will have a higher probability in the 35~40 range. Therefore, the overall revenue of lighting in the third quarter is expected to be flat, while the LED penetration rate is rising quarter by quarter. The total LED lighting is still growing in the third quarter, and the growth rate in the fourth quarter may further increase. Galaxy Securities believes that driven by the strong demand for LCD TV backlights and the rapid growth of the lighting market, the capacity utilization rate of various LED factories in Taiwan has been fully loaded this year. Manufacturers such as Ronda expect a prosperous situation in the third quarter. In addition, the median results of mainland LED manufacturers such as Sanan Optoelectronics and Chau Ming Technology are better than market expectations, and industry valuations will rise. Continue to promote the first Mingzhou Technology, Liard. Industrial Securities is optimistic about the development of the mainland LED company, maintaining the recommended investment rating of the LED industry, recommend Liard, Sunshine Lighting, Hongli Optoelectronics, Sanan Optoelectronics. Liard's small-pitch LED TV replacement DLP trend is established. In the second half of the year, indoor TV is worth looking forward to; Sunlight Lighting relies on locking in the world's first-class customers and expanding to other customers, rapidly expanding LED scale and having stable profitability; Hongli Optoelectronics In the next few years, LED general lighting and automotive lighting will have better development prospects; Sanan Optoelectronics' domestic chip leader is gradually established and will benefit from the competition pattern of the big Evergrande.

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