LED orders full ** plus LED stocks

"In 2013, led by overseas markets, the LED industry in the second quarter has taken the lead in picking up. From the perspective of some LED industry listed companies we researched, orders are all full," said a fund manager of a Shenzhen fund company.

Recently, some LED industry company stocks continued to rise. From April 17 to May 17, Jufei Optoelectronics, Hongli Optoelectronics, and Ruifeng Optoelectronics were up 83.68%, 62.14% and 58.44% respectively.

Order is full

According to the feedback from listed companies, fund companies, and brokerage researchers, LED companies' orders are now very full, driven by overseas markets. In an interview with a reporter from the Securities Times, Ruifeng Photoelectricity Director Zhuang Jili said that in April and May of this year, Ruifeng Optoelectronics' production orders have been filled. The situation of LED companies like Jufei Optoelectronics and Hongli Optoelectronics is similar.

According to industry sources, the entry of LED products from international lighting brand companies such as Philips, CREE and Osram has greatly improved in 2013, and orders for domestic LED companies to provide parts and components to these international brand companies are naturally overwhelming.

At the same time, the introduction of relevant policies is also good for the LED industry. Recently, the General Office of the Fujian Provincial Government forwarded relevant notices from the Information Bureau of Fujian Province, requesting the province to basically achieve universal use of LED lighting products in the public lighting industry by the end of 2015.

In this regard, Li Peng, researcher of electronic components of BOC International, said that this means that following the release of the Guangdong Province's policy of promoting LED products in the middle of last year, another important province has joined. The important position of the new central government in energy conservation and environmental protection may prompt other provinces to follow up.

In addition, the drop in prices is also an important reason for demand to start. Li Peng said that the price of LED products is getting closer to the balance that consumers accept on a large scale. From the statistics of related institutions in March LED bulb prices, the Chinese market to replace the 60W incandescent lamp product prices fell to 17.1 US dollars, replacing the 40W incandescent lamp product prices fell to 4.1 US dollars. Samsung and CREE released LED bulbs priced below US$15 and US$10 respectively. OSRAM announced that it will launch products with 10 euros (about US$13.1) in June. He predicted that the price of LED products may further decline in the second half of the year.

Funds plus LED company stocks

In the context of demand start-up, some funds have already replenished shares of LED industry-related companies.

Sun Zhanjun, a venture capital manager at Boshi, said that at this stage, LED industry and other industries are more concerned. Another fund manager in Shenzhen who slightly added the LED industry stocks said that he also investigated listed companies in the LED industry. He believes that the LED industry has indeed recovered.

Judging from the positions of the funds in the first quarter of 2013, Jufei Optoelectronics has obtained a number of fund jiacang positions. The Franklin potential portfolio of the State Sea has bought 3,175,300 shares, and the Guohai Franklin Small and Medium-cap Stock Fund has bought 3,309,700 shares. The National Social Security Fund has zero. The fifth group bought 2,654,800 shares, and the Changsheng Tongzhi Advantage Growth Fund bought 1,329,600 shares, and the Changsheng Tongde Topics Group bought and bought 1,309,600 shares. In the first quarter, the Agricultural Bank of China set up the industry's growth, adding 2,570,600 shares of Ruifeng Optoelectronics to 3,174,600 shares. The National Social Security Fund's 105 coalitions added 344,300 shares of Ruifeng Optoelectronics to 1,943,500 shares, and the Agricultural Bank of China bought small and medium-sized stocks. Ruifeng Photoelectric 90.3 million shares, Invesco Great Wall selected blue-chip (260110, fund) fund to buy 900,000 shares of Ruifeng Optoelectronics, Agricultural Bank of China balance of benefits Shuangjia Jiacun Ruifeng Optoelectronic 65.99 million shares. In addition, Hongli Optoelectronics, BDO Runda, Sanan Optoelectronics, etc. have also obtained substantial fund positions.

However, some fund managers stated that at present, domestic LED companies are simply producing and processing, lacking core technologies, and when the demand comes up, they increase the production line and the performance comes up. Once the demand weakens, they also face the problem of overcapacity. Therefore, Investment companies like this should pay attention to the problem of weaker demand.