With the popularization of energy-saving and environmentally-friendly lighting, the “cake†in the LED lighting industry market is further expanding. However, the competition is even more fierce. The growth rate of this cake has slowed down noticeably, and industry consolidation is ushered in the golden period.
Zhang Xiaofei, chairman of the High-tech LED Research Institute, predicted at the 13th High-tech LED Industry Summit on June 8 that the amount of M&A in the domestic LED industry will exceed 20 billion yuan in 2015, more than three times that of last year.
M & A frenzy <br> <br> Xiaofei, said the LED industry and look at the amount of mergers and acquisitions in 2013 was 2.6 billion yuan; in 2014 60 billion acquisition of the subject and the number of mergers and acquisitions doubled year on year; mergers and acquisitions in 2015 will amount More than 20 billion yuan.
In 2014, indoor lighting companies were absent from the M&A feast. He predicted that the indoor lighting mergers and acquisitions case in 2015 will break through and become the protagonist. In 2014, the integration of traditional lighting companies and LED lighting companies was not obvious, and the first year of 2015 will be launched.
If we say that in the past two years, Dehao Runda's acquisition of NVC Lighting and Tsinghua Tongfang's acquisition of Zhen Mingli have left a deep impression on the industry, then there are not many such heavyweight acquisitions in the first half of this year. Zhang Hongbiao, director of the high-tech LED financial services project, told reporters that the big projects will be in the second half of this year, and many are still under negotiation.
In fact, a close look at the announcement of listed companies, the recent mergers and acquisitions of the LED industry is also one after another. National LED (002449), Ruifeng Optoelectronics (300241), Zhongwei Optoelectronics and other well-known LED companies have been involved, but some are acquiring others, and some are acquired.
Ruifeng Optoelectronics (300241.SZ) released the acquisition plan on June 5, and plans to acquire 85% of the equity of Lingtao Optoelectronics for 200 million yuan, thus cutting the LED backlight from the TV, backlighting the LED backlight, and completing the LED backlight. Business coverage from large to small size products. Previously, Ruifeng Optoelectronics had already held a 15% stake in Lingtao Optoelectronics. After the acquisition, Lingtao Optoelectronics will become a wholly-owned subsidiary of Ruifeng Optoelectronics.
Guoxing Optoelectronics (002449.SZ) also announced its foreign investment announcement on June 5, intending to hold a total investment of 75 million yuan from Yaweilang Technology through the acquisition and capital increase, accounting for the capital increase of Yaweilang Technology. 62.5% of the registered capital after completion. The main business of Yaweilang Technology is LED epitaxial wafers and chips, semiconductor lighting equipment, LED display engineering and so on. After the completion of the acquisition, Guoxing Optoelectronics will hold Yaweilang, extending from LED packaging to upstream epitaxial wafers and chips.
Hangzhou Zhongwei Optoelectronics, a well-known enterprise that has been doing LED detection equipment and LED automatic production equipment, stopped its own listing plan and acquired a 51% controlling stake in Jingsheng Electromechanical (300316.SZ) on April 10 this year. The transaction amount of this merger is 137.7 million yuan, which will enable Jingsheng Electromechanical to expand from the supplier of crystal (LED upstream material) growth equipment to LED inspection and automation equipment suppliers.
Increased industry concentration <br> <br> the LED business people to attend the forum, generally lamented to reporters, this sad day. On the one hand, the price of LED lighting products continues to decline, on the other hand, the market demand for LED lighting products is getting higher and higher. Thinning profits make it harder for SMEs to survive, and the capital market is booming, giving the listed companies financing convenience. The combination of the two has boosted the wave of integration of the LED lighting industry.
Judging from the recent LED industry mergers and acquisitions, the acquirers have adopted a private placement method to raise capital into the capital market. For example, Ruifeng Optoelectronics plans to spend 200 million yuan to acquire 85% of Lingtao Optoelectronics, and plans to issue additional shares to TCL Group and Wenshi Investment, and plans to raise 200 million yuan; Guoxing Optoelectronics just announced the holding of Yaweilang, followed by On June 8, it announced that its non-public offering of approximately 45.75 million new shares had been approved by the China Securities Regulatory Commission.
Zhang Hongbiao believes that it is difficult to raise hundreds of millions of yuan in the past, or worried that the shares will be diluted. Now, the market value of some LED listed companies has increased by 60%~70% in the past two months. This year, the stock market is improving, and the financing of listed companies has become easier. Of course, the purchased companies have also obtained better valuations, which has added a fire to LED mergers and acquisitions.
The competition has intensified and the integration has accelerated, which has further increased the concentration of the LED lighting industry.
The "plate" of China's LED lighting industry is still expanding. In 2014, the output value of China's LED lighting was 222.6 billion yuan, a year-on-year increase of 41%, and the penetration rate of LED lighting exceeded 35%. The High-tech LED Research Institute predicts that the LED lighting penetration rate will exceed 50% in 2015, and the output value of China's LED lighting will reach 304.7 billion yuan, a year-on-year increase of 37%.
However, "players" are decreasing. Zhang Hongbiao said that there were more than 10,000 LED companies with annual sales of more than 3 million yuan, and there will be more than 10,000 LEDs this year. However, the overall number of enterprises is expected to decrease by about 10%.
At the same time, the trend of Everbright, the largest LED lighting company, will be more obvious, and the number of enterprises with revenues of 1 billion yuan will increase rapidly. The scale of LED lighting business of some listed or currently listed lighting companies, compared with 2013, Sunshine Lighting (600261) increased from 980 million yuan to 1.62 billion yuan; NVC Lighting increased from 830 million yuan to 1.23 billion yuan; Lighting increased from 540 million yuan to 1.1 billion yuan; Yuanhui Optoelectronics increased from 680 million yuan to 1.01 billion yuan; Foshan Lighting (000541) increased from 280 million yuan to 930 million yuan.
"The scale of LED lighting enterprises has expanded rapidly, and the survival space of SMEs has been further compressed, and the survival prospects are worrying." Zhang Xiaofei said, so small and medium-sized LED enterprises must survive to find their own market segments and positioning.
Cross-border mergers and acquisitions began brewing <br> <br> Although the popularity of LED lighting has not reached its peak, but ZhangXiaoFei warned that industry growth has slowed down significantly, expected in 2017 LED lighting penetration rate will exceed 80 percent, "China LED lighting The industry has only three years of gold development."
This year, Zhang Hongbiao, who is busy with the merger and acquisition of "marriage", revealed to reporters that this year's mergers and acquisitions have had different trends. “Last year, M&A in the industry was the main focus of M&A and production-oriented enterprises. This year, cross-border mergers and acquisitions and light asset acquisitions will increase.â€
Zhang Hongbiao believes that LED companies will have a broader M&A, such as "Lyed (300296)" extended to the advertising industry through acquisition. Listed lighting companies are also interested in service-oriented projects such as stage lighting design and other light asset businesses. “Enterprises should look for follow-up growth points after the peak of LED lighting in the future.â€
Is there a risk of blind mergers and acquisitions? Zhang Hongbiao said that the mergers and acquisitions of LED companies have become more rational now, because the development of the industry and the direction of technology are more transparent. For example, last year, a listed LED lighting company acquired an e-commerce company, but the integration effect was not satisfactory, so LED companies will be more cautious in this year. "Currently, M&A in the industry can either bring profits to the purchased objects or bring about complementary effects of technology and products."
Zhang Xiaofei, chairman of the High-tech LED Research Institute, predicted at the 13th High-tech LED Industry Summit on June 8 that the amount of M&A in the domestic LED industry will exceed 20 billion yuan in 2015, more than three times that of last year.
M & A frenzy <br> <br> Xiaofei, said the LED industry and look at the amount of mergers and acquisitions in 2013 was 2.6 billion yuan; in 2014 60 billion acquisition of the subject and the number of mergers and acquisitions doubled year on year; mergers and acquisitions in 2015 will amount More than 20 billion yuan.
In 2014, indoor lighting companies were absent from the M&A feast. He predicted that the indoor lighting mergers and acquisitions case in 2015 will break through and become the protagonist. In 2014, the integration of traditional lighting companies and LED lighting companies was not obvious, and the first year of 2015 will be launched.
If we say that in the past two years, Dehao Runda's acquisition of NVC Lighting and Tsinghua Tongfang's acquisition of Zhen Mingli have left a deep impression on the industry, then there are not many such heavyweight acquisitions in the first half of this year. Zhang Hongbiao, director of the high-tech LED financial services project, told reporters that the big projects will be in the second half of this year, and many are still under negotiation.
In fact, a close look at the announcement of listed companies, the recent mergers and acquisitions of the LED industry is also one after another. National LED (002449), Ruifeng Optoelectronics (300241), Zhongwei Optoelectronics and other well-known LED companies have been involved, but some are acquiring others, and some are acquired.
Ruifeng Optoelectronics (300241.SZ) released the acquisition plan on June 5, and plans to acquire 85% of the equity of Lingtao Optoelectronics for 200 million yuan, thus cutting the LED backlight from the TV, backlighting the LED backlight, and completing the LED backlight. Business coverage from large to small size products. Previously, Ruifeng Optoelectronics had already held a 15% stake in Lingtao Optoelectronics. After the acquisition, Lingtao Optoelectronics will become a wholly-owned subsidiary of Ruifeng Optoelectronics.
Guoxing Optoelectronics (002449.SZ) also announced its foreign investment announcement on June 5, intending to hold a total investment of 75 million yuan from Yaweilang Technology through the acquisition and capital increase, accounting for the capital increase of Yaweilang Technology. 62.5% of the registered capital after completion. The main business of Yaweilang Technology is LED epitaxial wafers and chips, semiconductor lighting equipment, LED display engineering and so on. After the completion of the acquisition, Guoxing Optoelectronics will hold Yaweilang, extending from LED packaging to upstream epitaxial wafers and chips.
Hangzhou Zhongwei Optoelectronics, a well-known enterprise that has been doing LED detection equipment and LED automatic production equipment, stopped its own listing plan and acquired a 51% controlling stake in Jingsheng Electromechanical (300316.SZ) on April 10 this year. The transaction amount of this merger is 137.7 million yuan, which will enable Jingsheng Electromechanical to expand from the supplier of crystal (LED upstream material) growth equipment to LED inspection and automation equipment suppliers.
Increased industry concentration <br> <br> the LED business people to attend the forum, generally lamented to reporters, this sad day. On the one hand, the price of LED lighting products continues to decline, on the other hand, the market demand for LED lighting products is getting higher and higher. Thinning profits make it harder for SMEs to survive, and the capital market is booming, giving the listed companies financing convenience. The combination of the two has boosted the wave of integration of the LED lighting industry.
Judging from the recent LED industry mergers and acquisitions, the acquirers have adopted a private placement method to raise capital into the capital market. For example, Ruifeng Optoelectronics plans to spend 200 million yuan to acquire 85% of Lingtao Optoelectronics, and plans to issue additional shares to TCL Group and Wenshi Investment, and plans to raise 200 million yuan; Guoxing Optoelectronics just announced the holding of Yaweilang, followed by On June 8, it announced that its non-public offering of approximately 45.75 million new shares had been approved by the China Securities Regulatory Commission.
Zhang Hongbiao believes that it is difficult to raise hundreds of millions of yuan in the past, or worried that the shares will be diluted. Now, the market value of some LED listed companies has increased by 60%~70% in the past two months. This year, the stock market is improving, and the financing of listed companies has become easier. Of course, the purchased companies have also obtained better valuations, which has added a fire to LED mergers and acquisitions.
The competition has intensified and the integration has accelerated, which has further increased the concentration of the LED lighting industry.
The "plate" of China's LED lighting industry is still expanding. In 2014, the output value of China's LED lighting was 222.6 billion yuan, a year-on-year increase of 41%, and the penetration rate of LED lighting exceeded 35%. The High-tech LED Research Institute predicts that the LED lighting penetration rate will exceed 50% in 2015, and the output value of China's LED lighting will reach 304.7 billion yuan, a year-on-year increase of 37%.
However, "players" are decreasing. Zhang Hongbiao said that there were more than 10,000 LED companies with annual sales of more than 3 million yuan, and there will be more than 10,000 LEDs this year. However, the overall number of enterprises is expected to decrease by about 10%.
At the same time, the trend of Everbright, the largest LED lighting company, will be more obvious, and the number of enterprises with revenues of 1 billion yuan will increase rapidly. The scale of LED lighting business of some listed or currently listed lighting companies, compared with 2013, Sunshine Lighting (600261) increased from 980 million yuan to 1.62 billion yuan; NVC Lighting increased from 830 million yuan to 1.23 billion yuan; Lighting increased from 540 million yuan to 1.1 billion yuan; Yuanhui Optoelectronics increased from 680 million yuan to 1.01 billion yuan; Foshan Lighting (000541) increased from 280 million yuan to 930 million yuan.
"The scale of LED lighting enterprises has expanded rapidly, and the survival space of SMEs has been further compressed, and the survival prospects are worrying." Zhang Xiaofei said, so small and medium-sized LED enterprises must survive to find their own market segments and positioning.
Cross-border mergers and acquisitions began brewing <br> <br> Although the popularity of LED lighting has not reached its peak, but ZhangXiaoFei warned that industry growth has slowed down significantly, expected in 2017 LED lighting penetration rate will exceed 80 percent, "China LED lighting The industry has only three years of gold development."
This year, Zhang Hongbiao, who is busy with the merger and acquisition of "marriage", revealed to reporters that this year's mergers and acquisitions have had different trends. “Last year, M&A in the industry was the main focus of M&A and production-oriented enterprises. This year, cross-border mergers and acquisitions and light asset acquisitions will increase.â€
Zhang Hongbiao believes that LED companies will have a broader M&A, such as "Lyed (300296)" extended to the advertising industry through acquisition. Listed lighting companies are also interested in service-oriented projects such as stage lighting design and other light asset businesses. “Enterprises should look for follow-up growth points after the peak of LED lighting in the future.â€
Is there a risk of blind mergers and acquisitions? Zhang Hongbiao said that the mergers and acquisitions of LED companies have become more rational now, because the development of the industry and the direction of technology are more transparent. For example, last year, a listed LED lighting company acquired an e-commerce company, but the integration effect was not satisfactory, so LED companies will be more cautious in this year. "Currently, M&A in the industry can either bring profits to the purchased objects or bring about complementary effects of technology and products."
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