By investigating the LED lighting industry chain including NVC Lighting, National Star Optoelectronics, Neo-Neon Lighting, and Foshan Lighting, we reaffirmed our previous view that LED lighting applications are already in a critical state of startup.

In the survey, we learned that the ex-factory price of LED 18-watt fluorescent lamps is about 200 yuan, which can replace 36-watt fluorescent lamps (T8) with an actual power consumption of 40 watts. The power-saving effect is over 50%; the product life is 20000-30000 hours.

At present, there is a certain difference between the ex-factory price and retail price of LED lighting products. We estimate that commercial use will be led by customers of large companies. The price is higher than the ex-factory price but lower than the retail price of terminal channels. It is expected that the ex-factory price will be the basis. Above floats 20-30%. Based on the above prices, the commercial lighting field of 11 hours/day and 250 days/year is economical (using a discount rate of 20% and a lifespan of 20,000 hours).

Lighting companies are actively involved. Traditional lighting companies have either entered or are entering LED lighting. The industry’s feedback on the future of LED lighting is positive and positive. We expect the first half of 2011 to be a period of promotion and introduction of LED lighting, and the large-scale emergence of LED lighting applications will only occur. It's only a fire.

Active expansion of upstream and downstream companies will bring scale effects to the LED lighting industry. The cost is expected to decrease further. It is estimated that the cost of LED illumination will be reduced by 30-40% at the end of 2011.

As new technologies emerge one after another, the cost reduction may have exceeded expectations. During the investigation, we saw that various companies are actively developing new technologies and new products. Different solutions have been introduced in the fields of chip, packaging, and heat dissipation, implying that the cost reduction rate may exceed expectations in the next year.

Potential catalysts: LED lighting demonstration project will begin, will deepen the user experience, establish user confidence in the application of LED lighting, the national subsidy policy can be expected; the promulgation of national standards can facilitate the measurement and identification of product technology level; LED lights in the first half of 2011 The difference between the energy-saving lamps and the accelerator accelerates.

LED lighting A-share core combination: National Star Optoelectronics/Zhejiang Sunshine, Silan Micro has also been attractive.