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Future LED lighting products will gradually phase out incandescent lamps

Listen to the electronics industry and get a head start on the semiconductor industry
The technical development of LEDs has matured and entered a period of profit creation with added value. With the support of technology development, capacity improvement and policy support, LED lighting products have an overwhelming advantage in both quality and price. In the future, LED lighting products will gradually eliminate incandescent lamps and gas-energized light sources.


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The concentration of the middle and upper reaches of the LED industry chain is high, and industrial transfer is a foregone conclusion. The upstream epitaxial chip entered the peak of expansion, and the market share was highly concentrated, showing the industry pattern in which the remaining is king. The package in the middle reaches a super-strong situation, the production capacity is gradually gathered, and the Matthew effect is obvious. The transfer of foreign production capacity in the upper and middle reaches is a foregone conclusion. Under the background of intensive production and policy subsidies, the cost of LED terminal products will gradually decline, which is conducive to the improvement of the profitability of LED downstream application companies.


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The downstream application is polarized, growing rapidly and with a wide space. General lighting is the most stable and broad market in LED application. China's LED market is developing at a late stage. It is estimated that the sales of LED lighting products in China will account for 70% of the total sales of lighting industry in 2020. The scale of LED general lighting market It will reach 450 billion yuan.

Integrating mergers and acquisitions, multi-distribution, and global development is the future of China's DLED industry. Foreign giants divested the lighting business, and domestic companies ushered in an opportunity. From 2015 to 2017, the LED lighting industry has more than 40 major M&A integration transactions every year. The M&A targets have also expanded to the education, media, Internet and other fields. Into the new field, mergers and acquisitions in the same industry, the layout of the global market, the integration of the upper, middle and lower reaches of the same industry chain is the main direction of MDM mergers and acquisitions.


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China's LED industry is favored by policies. The leading companies in the upstream and midstream have used technological advantages, cost advantages and financing advantages to continuously increase market share. Under the impetus of the general lighting demand side, the performance of downstream products can be expected to grow. We believe that the industry's leading performance will maintain steady growth under the background of the certain degree of concentration of the lighting industry in the future. We are optimistic about “Buddha”, “Light”, “Pu” and “Photo”. Foshan Lighting, Sanxiong Aurora, Op Lighting and Sunlight Lighting.