High-tech LED weekly report - February Taiwan LED market continues to decline half of the sapphire plant stopped production to inventory

Key Analysis

This week, 22 LED key stocks rose across the board, with an average weekly increase of 12.67%, and the market performed well.

In February, the total revenue of six listed sapphire substrates in Taiwan was 57 million yuan, a decrease of 63.1% year-on-year and 17.7% quarter-on-quarter; the total revenue of five chip-listed companies was 450 million yuan, a year-on-year decrease of 16.1% and a decrease of 21.1% from the previous month; The total revenue of listed LED packaging companies was 888 million yuan, a year-on-year decrease of 9.2% and a decrease of 18.4% from the previous month.

In February, the LED market in Taiwan fell sharply compared with that in January, which was mainly caused by the fact that the number of days of the Lunar New Year holiday was affected. The sapphire substrate market has fallen by as much as 63.1%, and most sapphire substrate plants have been discontinued or semi-discontinued.

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Market review

This week, 22 LED key stocks rose across the board, with an average weekly increase of 12.67%, and the market performed well. This week, 22 stocks of Liard (300296) rose by 24.3% in a week, which is better. It is expected to be affected by the first-quarter results, and stock support will increase. In addition, Alto Electronics (002587) also had a 21.3% weekly increase, which was a good growth.

This week, the high-tech LED industry index closed at 1375.0 points, with a weekly increase of 11.9%. The Shanghai and Shenzhen 300 index closed at 3171.96 points, with a weekly increase of 5.1%. The high-tech LED industry index performed better than the broader market. The high-tech LED industry index rebounded strongly this week after a sharp decline for three consecutive weeks. In the long run, this rebound may have a short-term buffer for the late decline. Investors should be vigilant.

Taiwan's LED market continued to decline in February, half of the sapphire plants stopped production and went into stock

According to the statistics of the High-tech Research Institute LED Research Institute (GGII), in February 2016, the total revenue of six listed sapphire substrates in Taiwan was 57 million yuan (unit: RMB, the same below), a decrease of 63.1% year-on-year and a decrease of 17.7% from the previous month. The total revenue of the five chip-listed companies was 450 million yuan, a year-on-year decrease of 16.1% and a decrease of 21.1% from the previous month. The total revenue of 10 LED packaged listed companies was 888 million yuan, a decrease of 9.2% year-on-year and a decrease of 18.4%.

In February, the LED market in Taiwan fell sharply compared with that in January, which was mainly caused by the fact that the number of days of the Lunar New Year holiday was affected. However, from the year-on-year decline, the Taiwan LED industry has experienced a sharp decline compared to last year's performance, especially in the sapphire substrate market, with a drop of 63.1%. Most sapphire substrate plants are in a state of suspension or semi-discontinuation.

February 6 sapphire substrate plant total revenue decreased by 63.1% year-on-year

According to GGII statistics, in February 2016, six sapphire substrate plants in Taiwan achieved a total revenue of 0.57 billion yuan, a year-on-year decrease of 63.1%. Specifically, in February 2016, the revenues of six sapphire substrate companies all declined. Except for Ruijie Technology, the declines in revenues of other companies exceeded 48%, a large decline. Jingmei application and rich harvest revenue The decline is very obvious, the factory is in a semi-discontinued state, mainly to consume inventory, and the monthly revenue is less than 2 million yuan.

Figure 1 Revenue of six sapphire substrate plants in Taiwan in February 2014-2016 (unit: 100 million yuan, %)

Source: Company Gazette GGII

February 5 LED chip factory total revenue decreased by 16.1% year-on-year

According to GGII statistics, in February 2016, the total revenue of five chip factories in Taiwan was 450 million yuan, a year-on-year decrease of 16.1%. Specifically, in February 2016, Taiwan’s five chip companies only saw revenue growth, while other companies’ revenues decreased year-on-year. Among them, revenues in the new century fell sharply, with monthly revenues below 20 million.

Figure 2 Revenue of five LED chip factories in Taiwan in February 2014-2016 (unit: 100 million yuan, %)

Source: Company Gazette GGII

February 10 LED packaging plants total revenue decreased by 9.2% year-on-year

According to GGII statistics, in February 2016, the total revenue of 10 LED packaging factories in Taiwan reached 888 million, a year-on-year decrease of 9.2%. Specifically, in February 2016, among the 10 listed LED packaging companies in Taiwan, Lianjia’s revenue growth was good, and the rest of the company’s revenues declined. Among them, Dongbei, Hongqi, Edison and Qihongying Both the declines were over 20%, and the decline was larger.

Figure 3 Revenue of 10 LED packaging factories in Taiwan in February 2014-2016 (unit: 100 million yuan, %)

Source: Company Gazette GGII

Analyst:

Name: Li Shengfa

Email: sf.

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Gaogong LED Industry Research Weekly (20160314-20160318)