At the beginning of the LED industry is now dawning

from the central and local policies to promote and demand recovery LED industry see glimmers in the clouds clearance. Mainland China LED industry is still a competition on the red sea, patents and lack of technology, structural overcapacity, disorderly competition make industry company grow hard. But in the red sea also hidden the great opportunities of the strong.

' Five-year & throughout; During the industry policy implementation is expected to promote general lighting market gradually along the public lighting, commercial lighting, the progressive civil market, eventually reach 500 billion production scale. We can judge, in the next few years China's LED industry each link will be fully integrated, conform to the government's strategic direction, have the money and technology advantages, brand and channel advantages of enterprises will eventually win in the competition in the red sea, short-term should focus on policy dividend for the listed company's performance and valuation of double promotion.

the sea rich by diving, the days fly high as a bird. “ Five-year & throughout; During the support of policy and LED products price decline will create the mainland LED market 500 billion output value scale, compound annual growth rate of 32%. Broad market for the LED industry manufacturers to provide sufficient space for development.

policies, prices, market launch in turn. We believe that the policy to promote and falling prices will jointly promote the China along the public lighting, commercial lighting, LED lighting market civil lighting start in turn.

- 2011 The year 2012 is & other; Five-year & throughout; Start, the central government and local government a series of policy combination will make lead the public lighting, commercial lighting will be driven by cost savings, then finally start civil market due to price factors.

red sea competition, gave birth to the strong. High LED statistics at present there are more than 5000 Chinese LED industry manufacturers, including packaging companies, more than 1000. Lack of patent and technology, structural overcapacity, international manufacturers to speed up the layout makes the Chinese LED companies face competition in the red sea. In the next few years, China LED industry each link would be likely to face a massive integration. It is the best of times and the worst of times, industry selection and integration will emerge in the end of the strong, and eventually become the leading on China's LED industry and technical characteristics of the binary pattern of coexistence of the manufacturer. We think is the strongest must satisfy at least conform to the government's strategic direction, Get government support) , have the money and technology advantages, have the advantages of brand and channel is one of several conditions.

recover Taiwan industry chain, enhance confidence in the industry. In 2012 in the second quarter, LED industry as a whole show month-on-month warming trend. In may, according to data from Taiwan chip enterprise income rose 4. Income rose 4 80%, packaging enterprises. 45%, but compared with the same trend is still not established. Driving force of the recovery is still mainly comes from the back light demand growth, lighting also slightly rebounded.

policy import, chill. In the first half of 2012, the central and local policy, in turn, import, warmed a jolt to the industry. Overall, 1 quarter industry weakness in the second quarter has started to change, the mainland chill of the LED industry. From us in the near future for the company's large-scale survey feedback, leds have preliminary signal demand picks up, the listed company performance is expected to rebound month-on-month. We judge the mainland LED overall demand trend rebound still accompanied by the policy of gradually fall to the ground, in the second half of the listed company performance will have substantial year-on-year growth.

dividend policy is a major observation points short to medium term. From the short term, the dividend policy is the main guarantee of profits of listed companies. LED lighting renovation project of guangdong province is the place for the central policy of echo, such as good effect in the early implementation may drive part of the economic strength strong region to follow up, make the domestic lighting market start to have a good start. Industry is expected, the next three years, guangdong province, is expected to promote LED street light, 2 million 30 million LED indoor lighting lamps and lanterns, is expected to be driven more than 10 billion yuan in the domestic market scale. We believe that the 7 - August LED push the progress of the reconstruction project of guangdong province is an important observation point years. Guangdong province LED industry leading listed companies is expected to take the lead in benefit, performance and valuation of double promotion.

recommended and focus on stock we suggest long-term focus on chips production leading three Ann, bdo embellish, HuaCan photoelectric, white light packaging manufacturer hon, photoelectric photoelectric and domestic leading LED lamps and lanterns frequently; Medium term frequently on the photovoltaic and hon is expected to benefit policy in guangdong province is the largest.