The "running road" cloud has dragged down the overall gloom of the Hong Kong stock LED sector

Although the interim results of NVC Lighting (02222.HK) have just been reported, but a "China Lighting Capital" has the news that some light factory owners are suspected of "running the road", so that the already stable LED sector in the Hong Kong stock market once again yesterday It is eclipsed.

Some media reported that in the ancient town of Zhongshan, which is known as the "China Lighting Capital", the local town government reported that a boss of LED lighting factory with a production value of more than 100 million yuan was suspected of "running the road". Contact with it. The report said that the boss was suspected of contract fraud and arrears of employee compensation, the local public security department has been involved. The report also revealed that the owner of a LED factory opposite the lighting factory had already “running the road” a few days ago, and before that, LED companies with a scale of more than 1 billion yuan had closed down.

The report quoted an emergency notice from a Guangdong branch of a large bank saying that the investment scale of the LED industry has grown rapidly in recent years, and the overcapacity situation is very prominent. The overall systemic risk is apparent, requiring branches and subordinate branches to investigate the credit-worthy customers involved in the LED industry. In the near future, the details of the investigation, the credit status and the method of handling the risk response are reported.

Affected by this news, the LED sector in the Hong Kong stock market fell overall yesterday. Even if the Hang Seng Index turned lower in the late session, it could not change the weakness of the LED sector. At the close of trading yesterday, NVC Lighting, the largest lighting product manufacturer in the Mainland, fell 4.5% to HK$2.13, Dajin Dongfang Lighting (00515.HK) fell nearly 4% to HK$0.73, and Zhenmingli (01868.HK) fell about 1.46%. Reported at 1.35 Hong Kong dollars.

It is worth noting that in addition to the negative impact of the “running” of the lamp factory owner, the national standard for compulsory lighting safety in the mainland is expected to be introduced next year, which will cause the mainland LED industry to face a large-scale reshuffle.

A person in charge of a mainland lighting company said that the industry has now entered an adjustment period. The overcapacity situation is full of LED industry. Nowadays, the production cost of domestic LED lighting is high, and the price can no longer be reduced, resulting in the product not being sold and the inventory backlog.

However, foreign banks are not so pessimistic about the prospects of LED companies. According to a research report issued by JPMorgan Chase, NVC Lighting is in a period of recovery. The company's biggest advantage is its large distribution network (up to 3,300 outlets) and diversified lighting products, which are beneficial to attract high-end retailers and government users. The initial use of LED lighting customer base. The bank cut its capital expenditure forecast for the fiscal year 2013 by 30% to 40%, corresponding to a 2014 P/B of 2x and a P/E ratio of 13.8.

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