LED industry rebound situation officially launched

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The LED chip index is slightly stronger than the broader market, and the package index is weaker than the broader market: Taiwan's February LED chip index (ChipLEDX) rose by 5.52, and the February LED package index (PackageLEDX) rose by 0.46. In the same period, Taiwan's electronic component index rose by 5.28, Taiwan's weighted index rose. 4.54.
Taiwan's industrial chain in February saw a slight increase in chip companies, and package companies fell. The eight LED chip companies we tracked in February had a total revenue of 3.729 billion Taiwan dollars, up 0.49 points from the previous month. We tracked 9 Taiwan LED packaging companies in February. Revenue totaled 4.614 billion Taiwan dollars, down 13.52% from the previous month. Since July last year, the packaging manufacturers' revenue has shown a gradual decline. In February, chip companies and packaging companies changed from the previous quarter. Except for the short-term inventory impact, the barriers to entry were lower and the competition was more intense. Therefore, the price fell faster than the chip. In addition, the growth of packaging in the mainland also caused the Taiwanese enterprise. The loss of share is the main reason why Taiwan's packaging companies have seen their revenue growth worse than that of chip companies in the past six months.
Industry News and Comments: The world will usher in the tide of changing lights, LED lighting market gates open; February LED bulb prices steadily fell, cost-effective upgrades for the future market key; sapphire market continues to increase prices, manufacturers are actively expanding production.
Industry investment strategy: February is still in the off-season in the first quarter. LED packaging companies' revenues have double-digit declines, and chip companies have risen slightly. With the advent of March, LED companies will gradually step out of the off-season in the coming months. Performance is expected to pick up. We maintain the recommended investment rating for the LED industry, recommend Liard, Sanan Optoelectronics, Sunshine Lighting, Hongli Optoelectronics. We recently published the Liard's in-depth report, "The big screen shows the market disruptor, and it is promising to enter the high-end indoors." We are optimistic about the rapid penetration of the company's small-pitch products in the large-screen splicing market and the company's leading edge. The company will also enter the high-end indoor market. Screen TV market. We recently published the Sunshine Lighting Depth Report "LED high growth is determined, layout e-commerce is worth looking forward to", the company is a mainland LED leading company, and for the first-class manufacturers such as Philips, Osram, the profit level is stable, will fully benefit from the LED lighting industry growing up. In the next few years, Hongli Optoelectronics will have a good growth in the field of automotive lighting. Sanan Optoelectronics currently ranks first in the mainland in the field of upstream chips, and is also in a leading position in technology. It is expected to further cooperate with other downstream application companies in the future to expand the application market.
Industry risk: LED lighting application growth is lower than expected; domestic enterprises in the core technology, core technology breakthrough or behind expectations.

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