The market believes that the growth rate of the LED display industry will fall sharply. The reduction of the industry growth rate will lead to an increase in the overall competitive environment, and the growth rate of net profit of display companies will fall sharply. We believe that although the growth rate of the LED display industry has declined, the industry segmentation market has a large difference, and enterprises with a relatively high export share will achieve rapid development.
The main basis for our judgment is the following three points: Main reason 1: The cost of LED display made in China is about 30% of similar foreign products. Based on: (1) Chinese LED screen enterprises use domestic LED lamps, while foreign companies The use of foreign lamps, the price of domestic lamps is 30 of the price of foreign lamps, only this one can reduce the cost of about 44. Considering that China's materials and labor costs are lower than foreign countries, we expect that the cost of Chinese products is about 40% of foreign products. (2) China exempts 17 VAT on export products, and we expect that state support can also reduce some of the costs.
The main reason 2: The gap between Chinese-made LED display and similar foreign products is small. We believe that technical indicators are important but not intuitive enough. We compare directly from downstream applications. The LED display of domestic enterprises can already enter higher-end applications such as sports events and large-scale exhibitions. We believe that the gap between similar products at home and abroad is small. In addition to special high-end projects, in most cases, domestic LED display enterprise products have met the requirements for use.
Main reason 3: The export space is large, and the sales scale of foreign LED display leading manufacturers has reached 500 million US dollars. The export space is about 60 billion yuan, more than twice the domestic market, and there is enough space to support the rapid development of export-oriented enterprises. At present, Dako, the largest LED display manufacturer in foreign countries, has achieved sales of 500 million US dollars in 2012. We believe that this industry has the potential to breed large companies.
Conclusion: The rapid development of export business will benefit related companies. These include Abisen, Lehman Optoelectronics, which has the largest share of exports, and Liard, which is actively exporting unevenly.
GuangDong DuBa New Material Technology Co.,LTD , https://www.dubachem.com