After years of development, the LED general lighting market has long been killed by the price war into a "Red Sea". With the continuous growth of the automotive LED market, and the current average gross profit margin is generally above 20%, LED manufacturers are actively engaged in LED automotive lighting. This piece of the "blue sea" field.
At present, automotive lighting has become a leading point for profit of leading companies by virtue of its high technology threshold and broad market prospects.
LED price bottoming out
"The price of chips in the first quarter is basically stable. It is expected that there will be no major changes in chip prices in 2016." Wang Gaoyang, deputy general manager of Hongli Optoelectronics Co., Ltd. said that the price of devices below 0.5W will have little room to fall. Hongli Optoelectronics will also pass Resource integration and other ways to reduce costs, not to fight the price war.
Indeed, following the price increase of some LED packaging manufacturers in March, Jingdian also issued a price adjustment letter in the second quarter of recent years, indicating that it will raise the price of some series of LED chips.
In the future, with the decline in LED subsidies, the shrinking supply side and the decline in package size, the overall supply and demand relationship of the LED industry will gradually improve.
According to the statistics of the High-tech Research Institute LED Research Institute (GGII), the global LED industry output value declined for the first time in 2015, reaching only 14.325 billion US dollars, and the annual recession reached 3%, mainly due to the price competition of LED manufacturers and the appreciation of the US dollar.
For example, in order to replace the average price of LED bulbs of 60W, the decline in 2013-2015 is 30.74%, 23.36%, and 11.59%, respectively. The annual price decline is obviously slowing down, and the future LED decline will continue this trend.
Industry experts pointed out that although the supply and demand gap of LED has not been balanced, this year's LED price competition pressure continues to exist. In the past year, due to excessive price competition among LED manufacturers, many LED products have been sold at a loss, even close to cash costs, so the price The space for decline has been relatively limited.
From the supply side, the reasons for the convergence of LED price easing tend to include the following factors: the subsidy will decline, the supply side of manufacturers such as Jingdian will shrink, and the growth rate of package size will decline.
Corporate profit "artifact"
Under the stimulation of the general profit of the traditional LED industry, many international giants and domestic LED companies have increased their investment in the field of automotive lighting in the past two years, and achieved remarkable results.
The first quarterly report released by domestic packaging giant Hongli Optoelectronics (300219) showed that in the first quarter, Hongli Optoelectronics' operating income was 440 million yuan, a year-on-year increase of 53.01%; net profit was 65 million yuan, a year-on-year increase of 138.3%. Among them, the demand for automotive lighting is strong, which has helped Hongli Optoelectronics' revenue to grow substantially.
Indeed, as can be seen from the report, in 2016, Hongli Optoelectronics' revenue in the first quarter increased significantly. In addition to its main packaging business, Fo Da signal also became one of the company's first quarter revenue highlights. (In 2013, Hongli Optoelectronics entered the automotive LED market through 100% holding of Fo Da signal, taking the lead.)
In fact, Hongli Optoelectronics contributed a net profit of approximately RMB 10 million in the first quarter of 2016 (the net profit of Fo Da signal in the first half of 2015 was only 9.95 million), a substantial increase year-on-year.
Similar profit performance is also seen in the OSRAM earnings report. Osram's fiscal year 2016 first quarter revenue grew 6% to 1.48 billion euros, pre-tax net profit increased 16% to 175 million euros, revenue performance mainly from LED components Business and special lighting markets, where special lighting mainly includes Osram's automotive lighting.
Competing for the layout of the "lights market" to nurture new machines
According to the bulletin issued by the National Bureau of Statistics, as of 2015, China's car ownership has reached 163 million. In just 10 years, the sales of the Chinese auto market has increased from 88 billion yuan in 2005 to 800 billion yuan in 2015. The rapid and rapid development has flooded the lighting market with huge business opportunities.
The broad profit margin and development potential have led many LED manufacturers to rush. The Japan Yahua 2016 operation strategy mentioned that it will focus on the automotive lighting field. At the beginning of 2016, Philips announced the renaming of the automotive lighting business at the 'Automotive Lighting 2016 Strategy Conference'. For 'Philips Auto Life', focus on this market; Jingdian actively sprints LED products for quaternary vehicles; Yiguang Electronics recently released 67-63U (AM) three-in-one RGBLED products for vehicles.
Many international first-line LED manufacturers have turned to the niche-type automotive LED lighting market, which will also promote a new wave of this year's market.
In contrast, the domestic market is also in full swing. In addition to the above mentioned “LED+Carnet†two-wheel drive Hongli Optoelectronics, middle and upper reaches of LED chips and packaging have also entered the automotive LED market through acquisition or strategic cooperation.
In July 2015, Anru Optoelectronics, a wholly-owned subsidiary of Sanan Optoelectronics, signed a Cooperation Framework Agreement with Beiqi Yinxiang. Anrui Optoelectronics established a branch office in Chongqing to produce LED products for automotive lamps and automotive applications for BAIC Yinxiang. (Including car lights, signal lights, interior lights, decorative lights, electronic instrumentation applications, GPS/DVD monitors, etc.).
And the famous domestic automotive lighting company - Snow Wright's exploration of LED car lighting has never stopped. In 2014, it first acquired Fushun Optoelectronics for 495 million yuan, and invested 10.56 million yuan to acquire 57.42% equity of Yike Optoelectronics in the form of capital increase. At the same time, in March 2015, Shell Wright invested RMB 510,000 to establish Foshan Xuelaite Automotive Intelligent Electronics Co., Ltd., which is intended to help Shell Wright develop LED headlight business and accelerate the strategic layout of the company's automotive lamp application in the vehicle field.
At the same time, the "flag flag" of domestic silicon substrate technology - Jingrui Optoelectronics is also actively deployed in the lamp market. At present, four cost-effective automotive lighting high-power LED package lamp beads have been developed. These lamp beads can be widely used. Used in automotive headlights, work lights, fog lights, daytime running lights, interior lights and motorcycle lights. Moreover, Jingrui Optoelectronics recently announced that its ISO/TS16949 quality system audit certification has passed and will be officially certified two months later.
The 13th Five-Year Plan points out that the new energy automobile industry will be vigorously developed, and the market share of domestic automobile manufacturers will gradually increase. In addition to the current domestic automotive LED suppliers OSRAM, Lumileds, Hongli Optoelectronics, etc., the rise of the automotive lighting market is also LED manufacturers offer new market opportunities.
According to industry experts, in 2020, the global automotive LED lighting market will reach 7 billion US dollars, with a compound annual growth rate of over 18%. Among them, the application of exterior lighting including headlights, directional lights, positioning lights and fog lights will grow rapidly, although the penetration rate of outdoor LED lighting is less than 15%, equivalent to $121 million, but the market size is expected by 2020. It is expected to grow to 2.29 billion US dollars.
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