LED new planning is not good but bad

LED concept stocks rose behind the six ministries and commissions of the National Development and Reform Commission jointly issued the "Semiconductor Lighting Energy-saving Industry Plan" (referred to as "LED lighting industry planning") on February 17th. The plan proposes that the LED lighting industry output value will reach 450 billion yuan in 2015. (Including 180 billion yuan in LED lighting applications), it is considered to be good for LED concept stocks. Yesterday, affected by the broader market, the LED sector stocks failed to extend the general market the previous day. As of yesterday's close, Jufei Optoelectronics plunged 6% compared to the previous day's closing price. Bundånd Runda and Ruifeng Optoelectronics also fell more than 3%, while Qinshang Optoelectronics soared 3%.

However, industry experts yesterday, in an interview with the Yangcheng Evening News, said that the LED concept stocks rose only market speculation, planning is not good for the industry, the national policy on LED lighting products in the application of the end of the limited role. Zhang Xiaofei, director of the LED Industry Research Institute of Gaogong, even pointed out that the market share of traditional high-efficiency lighting products, such as energy-saving lamps, is expected to remain stable at around 70%, which is not only unfavorable to the LED industry, but even negative.

New plan to reduce the scale of industry According to the LED lighting industry plan announced by the six ministries and commissions, the average annual growth rate of LED lighting industry output value will reach 30%, and it will reach 450 billion yuan in 2015. The Yangcheng Evening News reported earlier that the "Twelfth Five-Year Plan" for the development of semiconductor lighting technology issued by the Ministry of Science and Technology in May last year (Consultation Draft) proposed that the industrial scale will reach 500 billion yuan by 2015. In contrast, it can be seen that the plan introduced this time is lower than the previous goal. At the same time, the planning of raising 20 to 30 leading enterprises in this plan has also reduced the number of 10 companies by 15 compared to previous plans. Industry sources said that this shows to a certain extent the country's cautious attitude towards the development of the LED lighting industry.

In addition, the plan clearly stated that the market share of traditional high-efficiency lighting products, such as energy-saving lamps, should be stabilized at around 70%, and the market share of LED functional lighting products should be more than 20%. Yesterday, Zhang Xiaofei, director of the LED Industry Research Institute of Gaogong, said in an interview with this reporter: “The industry generally believes that LED lighting products will have a greater impact on the traditional incandescent lamp and energy-saving lamp product market, and the market share should exceed 30%, the market share of products such as energy-saving lamps proposed in the plan is stable at 70%, which is not good for the LED industry.”

Zhang Xiaofei also believes that due to the current state has not introduced detailed rules for the subsidy of LED lighting terminal products, LED lighting industry planning has limited role in accelerating the popularity of LED lighting products at the application end.