LED industry accelerates development

On the one hand, it is too late for money to squeeze into a good project. On the other hand, it is a good project. It regrets that financing is too early. The semiconductor lighting industry is as hot as the current weather in the primary market. At the "Chenggong Le National Tour Research and Industry Seminar", this reporter learned that venture capital investment is "robbing shares" of LED-related companies.

In March of this year, many venture capital and LED companies are still wondering about future market prospects and are concerned about resistance. But recently, venture capital has bet on LED companies such as chips and packages.

In recent surveys and industry seminars held by Senior Industrial LED, the reporter was informed that there are many cases of venture capital institutions rushing to invest in LED projects, and even if there is money, they cannot enter the door. This year, Wuhan Diyuan Optoelectronics Technology Co., Ltd.'s financing case is a classic portrayal of the LED industry financing story. As the largest professional manufacturer of high-brightness, high-power white LED power chips in China, Wuhan Diyuan Optoelectronics immediately attracted a number of investment institutions after it embarked on a third-round financing plan totaling 150 million yuan. Many institutions, such as the Hunan New Energy Industry Venture Capital Fund, wished to take shares, but they were all rejected.

According to the reporter’s understanding, the current valuation of the LED lighting industry is not low, based on static valuations. Zhang Xiaofei, CEO of Gaogong LED, said, “There are different valuation methods for different companies. Take large, mature companies with an annual output value of 50 million yuan to 100 million yuan as an example, usually with net assets of the next 3 to 5 years. Equity, net asset yield, valuation of price-earnings ratio. Usually 5 times to 8 times the net assets, may also exceed 10 times." Wuhan Diyuan Optoelectronics' valuation is based in part on the price-earnings ratio. Despite the official turnaround at the end of this year, Diyuan Optoelectronics issued an additional price of 5 yuan per share. Its basis is that in 2012, it is estimated that the profit per share will be nearly 1 yuan, and it is planned to be listed in the next 3 years. Therefore, with a post-listed price-earnings ratio of 20 times, the incremental price per share is about 5 yuan.

In this regard, Wu Zhihong, chairman of Wuhan Diyuan Optoelectronics, apparently regretted more than joy. “It is cheaper to sell. If you are financing in the latter half of the year, it is definitely not this price. We did not make profit when formulating the financing plan. Now, the market situation is very good.” Optoelectronics has also come out of the break-even point." Zhang Xiaofei said, "This is not an isolated phenomenon. Since the second quarter of this year, with the implementation of various supportive policies and the market heating up, the LED lighting industry has generally experienced high profit growth or losses. Therefore, at present corporate financing, While considering the historical compound growth rate, various factors such as accelerated industry development and accelerated growth of the company will also be taken into account. Usually, the premium rate is much higher than that before the first half of the year or even a half.

In response, Wei Xun, senior manager of the Hunan New Energy Industry Venture Capital Fund, expressed his understanding that "Compared with pure financial participation, LED companies value the resources owned by the investors. The Jiuzhou Group previously introduced by Wuhan Diyuan Optoelectronics is For example, the latter has the resources for the development of the LED packaging industry, so it quickly became a partner of Wuhan Diyuan Optoelectronics' downstream products. Together, they will help Wuhan Diyuan Optoelectronics become bigger and stronger."

Yang Daohong, deputy director of the Investment Promotion Bureau of Donghu Hi-Tech [ 10.19 2.93% ] Development Zone Management Committee, pointed out that “With the upstream chip technology breakthroughs, large-scale downstream applications have been put on the agenda, and high-tech development zones will introduce and support the downstream industry."

Many companies stated that financing will be used to increase production capacity. When the reporter asked "when the pace of expansion accelerates, whether China's LED lighting industry will follow the trail of a significant overcapacity in solar cell production," the industry does not seem to be worried. Wei Zhansheng said, "China is already the world's largest solar cell production base, and LED lighting is still far away from this stage. In addition, the demand for solar cell industry comes mainly from overseas, so it is affected by the financial crisis; LED The domestic demand for lighting is very large, so it is not vulnerable to serious external shocks."