LED related products demand explosive growth exports exploded by 520% year on year

A few days ago, China Association of Lighting Appliances released "China lighting Industry export Situation Report for the first three quarters of 2020". According to the report, the recovery trend of the industry is quite obvious, mainly because the rapid resumption of work and production after the epidemic has made up for the capacity gap caused by the epidemic in the global market.

The LED industry continues to rebound in the first three quarters of export growth of 5.45 percent year-on-year

In the workshop of an LED enterprise in Shenzhen, the reporter saw the workers busy in full swing, the machine to achieve full load production. According to the person in charge of the enterprise, business has been poor in the first half of this year. The orders received last year were delayed again and again due to the epidemic. In the second quarter, almost all the work started sporadically, but since July and August, the orders began to increase.

Chen Fuquan, Chairman of Shenzhen Sacre-Coeur Technology Group: There were some crises at the beginning of the year, but after our new products were developed, our new products started from scratch and grew at a high speed, so we increased by more than 50% from January to October this year.

Industry sources told reporters that the reason for the rise in orders is that the domestic control of the epidemic is relatively fast, a lot of overseas orders to the domestic flow, coupled with the domestic early backlog of orders has entered the late implementation, LED export has shown a significant growth.

Li Guanqun, Secretary of the Board of Directors of MLS Co.,Ltd. : In recent years, a large part of the industry's production capacity has been transferred to Southeast Asia and overseas. However, when the epidemic situation in China is better than overseas, many orders have been transferred to domestic manufacturers. The manufacturing bases in Ji 'an and Xinyu, for example, have been operating at full capacity since August.

According to the "Report on The Export of China's Lighting Industry in the First Three Quarters of 2020" released by China Lighting Appliance Association, in September 2020, the export of China's lighting industry reached 5.113 billion US dollars, with a year-on-year growth of 44.18%, recording the largest year-on-year growth in the single month of this year. Since June, the export of China's lighting industry has achieved double-digit growth for four consecutive months. Among them, the export volume of LED lighting products was 3.4 billion US dollars, with a year-on-year growth of 40.5%. The cumulative export volume of LED lighting products from January to September this year was 23.46 billion US dollars, with a year-on-year growth of 5.45%.

LED sterilization new products popular enterprises actively research and develop the blue sea market

The overseas epidemic situation is still very serious, and the export of epidemic prevention and home-related products continues to soar, especially the demand for scientific research, medical lamps, ultraviolet lamps and other epidemic prevention related lighting products has increased significantly. Many enterprises have turned to produce these products that are urgently needed to fight against the epidemic, greatly expanding the market living space for these enterprises.

Chen Huaming, the head of RESEARCH and development of an LED enterprise, told the reporter that due to the COVID-19 outbreak, his enterprise began to urgently organize scientific research force in February this year to develop photocatalyst light bulbs, which can achieve continuous sterilization and durability of more than 5 years on the premise of being harmless to human body.

In the context of the epidemic, a large number of enterprises have entered the field of LED sterilization, and now LED sterilization products have become the standard products of many enterprises.

In fact, in recent years, the LED industry has been not so prosperous, the traditional product competition is relatively fierce, performance generally declined, so enterprises are actively developing new products, not only sterilization products, plant lamps, pig lamps are also very popular.

Yongxingchun, chairman of Shenzhen Yaorong Technology Co., LTD. : LED plant lamp USES LED light wave to promote the growth of plants and improve the quality of flowers. This product brings us sales of more than one million yuan every month.

Industry insiders told reporters that in the first three quarters of this year, there was an explosive growth of related lighting products such as scientific research, medical lamps and ultraviolet lamps, in the context of huge demand caused by the global epidemic. According to statistics, the export of related products in the first three quarters of this year has reached 386 million US dollars, with a year-on-year growth of 520%.

LED industry inflection point arrival focus on the industry leading enterprises

Although LED industry exports showed explosive growth in the second half of the year, many enterprises did not escape the depression in the first half of the year. As LED industry volatility increased, the phenomenon of secondary differentiation became more prominent. Industry insiders believe that the domestic LED industry is about to enter the maturity stage, and the trend of intensive integration has obviously become a new trend. In this case, what investment opportunities or risks will be ushered in the industry?

In recent years, influenced by the macroeconomic situation and the development cycle of the industry itself, the growth rate of China's lighting industry has been continuously reduced, and it has stepped into a stable development period from the previous high-speed development period. In addition, the global OUTBREAK of COVID-19 in 2020 has greatly inhibited the production, supply chain, capital chain and demand side of the entire lighting industry.

Industry insiders believe that after two years of adjustment in 2018 and 2019, the strong will always be strong and the weak will always be weak, and the epidemic has accelerated the reshuffle of the industry.

Lei Bo, general manager of Shenzhen Guanke Technology Co., LTD. : The overall surplus of this industry is definitely rigid, but in fact, after the baptism of the past few years, I think many small enterprises may become smaller, or finally no voice, and large enterprises may become larger and larger.

Li Guanqun, secretary of the BOARD of DIRECTORS of MLS Co.,Ltd. : If not for the impact of the epidemic, the upward trend would have appeared at the beginning of this year. However, due to the impact of the epidemic, it was delayed for about three quarters, that is, it started at the end of the third quarter, which was a turning point for the whole LED industry.

The personage inside course of study thinks, from the long term, the market for the LED industry is still optimistic, from the perspective of the situation of production capacity, in the past, many domestic enterprises mainly OEM model of development, the industrial chain link overall profit is low, but now many of the leading enterprises in their own brands have started towards the international market, therefore, from a new round of consolidation in the global LED industry level, there is still a good investment opportunities.

Yue Yongming, research director of Beijing Dingsa Investment Co., LTD. : I think the supply side is contracting towards leading enterprises, and the demand side is starting to recover, so I think from the whole industry level, it may have been cleared. As for the leading companies in some industry segments recently, the stock price has been reflected. Although the valuation of many leading companies is still relatively expensive from the perspective of 2020, most leading companies have basically returned to the normal situation. Next year, some leading companies may make a record high profit.