2014 LED lighting "consolidation tide" is still continuing

Last year, with the rapid increase in LED lighting demand, the LED industry has also ushered in an unprecedented peak of development. Enterprises in all links of the upstream, middle and lower reaches have begun to expand production, and the cloth channel has seized more market share. As one of the most convenient and efficient, M&A has been favored by LED listed companies.

Since the second half of last year, almost all LED listed companies have had large and small mergers or acquisitions or various forms of strategic cooperation. Under the background of the weakening and staying of the entire LED lighting industry, listed companies with product, technology and capital advantages are accelerating their development and integration, with a view to the rapid development of the LED lighting industry and the first-mover advantage when the concentration is improved.

Following the acquisition of NVC and Sanan Optoelectronics (600703) last year by Dehao Runda (002005) to acquire Taiwan's Yuyuan Optoelectronics, this year, Tongfang (600100) has a stake of HK$900 million, and Weiwei (300317) With the 133 million yuan to meet the mergers and acquisitions of LED industry and other LED industry mergers and acquisitions, the entire industry chain battle has become increasingly fierce, and the industry integration drama has gradually culminated.

The government's policy support for mergers and acquisitions is also constantly improving. Today, the China Securities Regulatory Commission issued a refinancing method for listed companies on the GEM.

For the re-financing of the GEM, which is the industry's most concerned capital market, the measures stipulate that the issuance conditions for the refinancing of the GEM include the profit in the last two years; the cash dividends are implemented according to the regulations in the last two years; the asset-liability ratio at the end of the latest period is higher than 45. 6 conditions. Most of the companies listed on the GEM are emerging industries such as LEDs. They are in a high-speed growth period. If they cannot refinance for a long time, it is not conducive to the long-term development of enterprises. The director of the LED listed company believes that the LED industry is now in the integration period, and the M&A needs the support of funds. The introduction of the refinancing method can be described as timely rain.

The cost performance of LED lighting products has a strong advantage, the outbreak of the lighting market is certain, this year is mainly to test whether the performance of LED companies can meet market expectations. Zhou Yi, a researcher at Huatai Securities (601688), believes that LED companies rarely have more than 1 billion yuan in output value. How to make them bigger and stronger will require more mergers and acquisitions, restructuring and shareholding in the LED industry.

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