2020 is a year full of surprises and surprises for the LED industry. The biggest surprise is the impact of the global epidemic, and the surprise is the burst of business opportunities in the industry's blue ocean market. This year, LED companies are working hard under the headwinds of weak global economic demand, and the new industry structure is quietly reshaping.
IPO status of 25 LED-related companies
As the industry structure changes, the camp of listed LED companies is constantly growing. This year, a number of LED-related companies have slammed the door to listing, and have risen in adversity.
According to incomplete statistics from LEDinside, 25 LED-related companies have embarked on the IPO road this year. So far, 7 companies have been successfully listed, including Bull Group, Ming Microelectronics, Xinruida, Space-Time Technology, Aike, Luoman and Haoyang. Among them, the market value of Bull Group is far ahead, reaching 123.5 billion yuan (11:30 AM on December 24).
The most impressive thing is that Ming Microelectronics has gone through several twists and turns in its IPO. From 2011 to 2020, it went through three barriers and finally successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange on December 18 this year.
Among other companies that have not yet successfully listed, the IPO of Suijing Optoelectronics is currently suspended. According to the GEM official website, Suijing Optoelectronics took the initiative to apply for suspension of the review process on the grounds of updating financial information. Jingtai shares and Guangxiang Technology withdrew their listing applications. Among them, Jingtai is the first company whose IPO is terminated under the GEM registration system.
According to the official website of the Shenzhen Stock Exchange, on June 29, Jingtai Stock’s GEM IPO application was accepted and accepted for review. On August 11, Jingtai submitted an application for withdrawal of listing. According to relevant regulations, the Shenzhen Stock Exchange decided to terminate its GEM. IPO review.
According to Wind, a service provider of financial data and analysis tools, Jingtai Co., Ltd. has conducted listing counseling records as early as 2018. The prospectus was accepted in June 2019, and it entered the pre-disclosure update state in April 2020. It was transferred to the Shenzhen Stock Exchange in June. Continue to break through the ChiNext, but on July 22, because the sponsor was suspended by the China Securities Regulatory Commission as a sponsor, the IPO of Jingtai shares was suspended for a while, and it was finally broken.
Coincidentally, Xinyichang has also suspended the IPO due to a fine from the sponsor, but the difference is that Xinyichang's IPO application has been successfully completed on December 16.
The three major gold niche markets
The niche market has huge business opportunities and has naturally become the "darling" of the capital circle. Many companies get together to go public, which also proves this from the side. It is precisely because of the insight into the explosive potential of the niche market that companies aim to broaden their financing channels and expand their business scale through listings, and take a share of the new blue ocean market. Throughout the main business and investment projects of companies sprinting for IPO, it can be found that the three major areas of new display, landscape lighting, and smart lighting are quite favored by the capital market.
01. New displays are flourishing
In 2020, LED chip, packaging and display manufacturers such as Sanan Optoelectronics, HC Semitek, Jucan Optoelectronics, Ruifeng Optoelectronics, Hongli Zhihui, Jufei Optoelectronics, Zhaochi Optoelectronics, Leyard, Unilumin Technology, etc. will continue In addition to the new display field, a number of billion-level Mini/Micro LED projects were signed and landed in less than a year, and the capital market was very lively.
Among the companies sprinting for IPOs this year, the main businesses of Ming Microelectronics, Xinruida and Xinyichang are closely related to the new display industry, and the three companies also plan to show their skills in their respective fields.
The main products of Ming Microelectronics include LED display driver chips and LED lighting driver chips. Among them, LED display driver products account for more than 70% of the revenue. The company's initial public offering plans to raise 462 million yuan, of which 190 million yuan will be invested in the research and development and industrialization of intelligent high-end display driver chips.
Currently, major display driver chip manufacturers are actively attacking the Mini/Micro LED field. For example, Macroblock has been at the forefront of the display driver field, and recently released a number of MiniLED backlight driver chips, officially entering the consumer market. It can be seen that manufacturers may lag far behind their opponents if they are not paying attention, and lose the opportunity to seize more market share.
Although Ming Microelectronics has a certain market position in the display driver field, it is only by going public to introduce more abundant funds to expand the business scale. With this successful listing, Ming Microelectronics will further expand its production and sales scale and enhance its competitiveness with Macroblock Technology and other peers.
Xinruida's main business involves new display backlights and healthy intelligent lighting. In the new display field, Xinruida mainly provides backlight module optoelectronic systems. In 2019, Xinruida completed the research and development and sample work of HDR and MiniLED display technology, and related products have been produced in small batches. It is expected to complete the mass production and listing of terminal products this year. At present, some of the MiniLED technologies have obtained patents and have entered the stage of customer samples.
The company's initial public offering raised 426 million yuan, of which 268 million yuan was invested in a new flat-panel display backlight device expansion project, and 20 direct-type backlight module optoelectronic system production lines will be built. After the project reaches production, it is expected to achieve an annual production capacity of 67.2 million direct-lit backlight module optoelectronic systems.
Xinyichang is at the equipment end of the industry chain and mainly provides LED die-bonding machines in the LED field. With the rise of Mini/Micro LEDs, Xinyichang actively develops Mini/Micro LED equipment to respond to new demands in the market. Among them, MiniLED die-bonding machine has realized its performance. As of the first three quarters of this year, the total contract value of the Xinyichang MiniLED die bond machine's on-hand contract amounted to 26.53 million yuan.
In this public offering, Xinyichang intends to raise 552 million yuan, of which 310 million yuan will be invested in new smart equipment projects, with a total investment of 431 million yuan, and will introduce advanced machinery and equipment, such as LED and semiconductor die-bonding machines, with the purpose of expanding Production capacity and business scale to meet the strong demand of MiniLED, semiconductor packaging and other industries.
As the primary link of the Mini/Micro LED industry, the equipment end affects the development of the entire industry and affects the process of commercialization. The listing of Xinyichang may become a catalyst for more equipment manufacturers to squeeze into the capital market, and accelerate the breakthrough of difficulties in the Mini/Micro LED equipment link.
Regardless of the link in the industry chain, more companies joining the capital market indicate that the new display industry is booming, which is conducive to more funds and resources converging in this field, thereby accelerating the promotion of display industrialization.
02. Landscape lighting rebirth after catastrophe
Under the epidemic situation, the cultural and tourism industry bears the brunt, and the large-scale delay and suspension of landscape lighting projects have caused a considerable impact on the LED lighting industry. However, landscape lighting has not been in a slump since then, but under the combined effect of industry standardization and national policy promotion, ushered in the second spring.
On the one hand, the landscape lighting industry has entered a stage of rational development, paying more attention to the sustainable integration of LED lighting technology, culture, art and natural laws, and manufacturers have a broader development space in lighting design and product selection. On the other hand, economic recovery after the epidemic, national policies vigorously promote the development of the cultural tourism industry and night economy, creating more new business opportunities, and also spawning more new forms of products.
This year, Signify, NVC Lighting, Wanrun Technology and other major companies have increased their investment in the landscape lighting market. At the same time, Space-Time Technology, Aike, Romance, Golden Lighting, Golden Oriental Smart, etc. Landscape lighting companies flock to the capital market.
The main business of these five manufacturers are all around landscape lighting and lighting projects. Up to now, Space-Time Technology, Aike Shares and Roman Shares have joined the ranks of listed companies, the listing application of Golden Lighting has been inquired, and Golden Oriental has accepted counseling.
The initial public offerings of Space-Time Technology, Aike and Roman shares respectively raised 1.024 billion yuan, 845 million yuan, and 584 million yuan. If the 573 million yuan raised by the Golden Lighting Plan is added, the total amount of funds raised will reach 3.026 billion yuan. .
Among them, most of the funds raised by Space Technology, Roman shares and Golden Lighting are planned to be used to supplement the working capital of the lighting engineering business, and Aike shares are mainly invested in LED landscape lighting and smart controller production projects.
By going public and raising funds, the production capacity of several manufacturers in the field of landscape lighting will be expanded, which will help improve their competitiveness in bidding for large-scale lighting projects with leading companies in the industry.
From an overall point of view, the successive listing of landscape lighting companies this year indicates that landscape lighting is making a comeback, and the future market volume is considerable.
03. Smart lighting has a long way to go
Smart lighting can penetrate many fields such as commerce, home furnishing, education, technology, etc., and will be more widely integrated into all aspects of people's life, study and work in the future. Since 2019, the wind of intelligence has begun to sweep the lighting market, and lighting manufacturers have successively added or increased their smart lighting business.
However, in the product structure of most manufacturers, smart lighting is only one branch. Therefore, as a pure smart lighting brand, Yeelight's application for listing has attracted countless attention.
Yeelight brand products cover smart home lighting, smart countertop lighting, smart electrical appliances, smart light source lighting, smart home control, etc. At present, the focus is on the whole house smart lighting market.
In terms of ecological chain cooperation, Yeelight began to "bind" with Xiaomi as early as 2014, and later cooperated with e-commerce platforms such as Tmall, JD.com, and Suning. After years of layout, Yeelight has been able to do well in the smart lighting ecosystem.
Midea Group's lighting business, Meizhi Optoelectronics, also began planning to go public this year. The company's main business involves lighting fixtures and smart home consumer equipment, and is inseparable from smart home lighting.
It is worth noting that the revenue of Meizhi Optoelectronics is only a fraction of the total revenue of Midea. The spin-off of Meizhi Optoelectronics for the listing shows that Midea has also begun to attach importance to the development of the smart home lighting market. It wants to get more cakes in this promising field. The listing can broaden the financing channels for Meizhi Optoelectronics and make it more successful in the smart home lighting market. Greater room for development and enhance brand awareness.
Xinruida has also done something in the field of intelligent lighting. In addition to developing new display backlights, it also plans to expand 20 production lines of healthy intelligent lighting products. The project products include healthy intelligent eye protection desk lamps and intelligent ceiling lamps.
This year all signs indicate that smart lighting has become unstoppable, and there is no doubt that it is the blue ocean market. However, according to TrendForce's research and analysis, the penetration rate of smart lighting products in commercial applications has increased significantly, and the promotion effect in the home market is not good. This is mainly reflected in the incompatibility of products in the major ecosystems and user experience. There is still much room for improvement. Therefore, the promotion of smart lighting in the home market has a long way to go.