A new round of subsidies is expected to be launched at the end of the year. Recently, LED industry expects a new round of home appliance energy conservation subsidy Q4 will be released. Displaysearch estimates that the amount of TV involved will be about 2 billion to 300 million yuan, which is expected to cover about 10 million large-size TVs. The main domestic power plants have confirmed this. In addition, in 2013, financial subsidies to promote efficient lighting have been launched, and the proportion of LEDs has increased significantly. The results of the relevant winning bids are expected to be announced before the end of the year and become a catalyst for the LED sector.
The industry is happy to watch the 4th quarter. Orders of major LED companies in mainland China have improved from September to August, and backlight LED companies have received clear demand for stocking from TV factories. At the same time, demand for LED lighting has remained steady and rising. For Taiwanese companies, Dongbei, Longda and other manufacturers are more optimistic that the fourth quarter revenue will have a double-digit growth. The off-season in the fourth quarter is not a big probability event. In addition, due to the sluggish economy in the second half of last year, the single season in the fourth quarter of this year is expected to increase significantly.
LED lighting will accelerate penetration. Philips, Cree, Yiguang and other major brands have introduced new LED bulbs with lower prices. Under the premise of similar performance of the same brand, the price difference between LED bulbs and energy-saving lamps has been reduced to 1-2 times. In terms of market segments, commercial lighting has accelerated its popularity and will expand into office and home in the next two years. International manufacturers generally expect that the LED lighting penetration rate will reach 50 or more in 2015 (about 5 in 12 years). We believe that the rapid decline in prices will lead to more market demand, and the penetration rate is expected to exceed expectations.
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