LED performance bottomed out** Completed strategic layout ahead of schedule

Since August, LED plates have risen 5.88%, far exceeding the market's performance. Statistics show that Yinhua, ICBC Credit Suisse and other funds have added LED stocks in the second quarter to complete the strategic layout in advance.

Analysts said that the fund selected a large-scale Jiacang LED segment, on the one hand because the bottom performance of the sector rebounded, the industry trend is positive; on the other hand, the relevant policy dividend will gradually appear, and related companies will benefit in the long term.

Benefiting from the bottoming out of demand growth performance and the favorable news of recent policy support, the LED sector has recently become active. Since August, the sector has risen 5.88%, while the Shanghai index has fallen by 2.43% over the same period, far exceeding the market's performance. Statistics show that Yinhua, ICBC Credit Suisse and other funds have chosen to increase the sector in the second quarter and complete the strategic layout in advance.

The statistics of the fund plus LED board showed that at the end of the first quarter of the year, there were a total of 46 fund holding stocks in the LED sector, with a total market value of 2.306 billion yuan; at the end of the second quarter, a total of 62 fund holding stocks were held in the hectophilic stocks. The total market value of 3.175 billion yuan, an increase of 815 million yuan. The related company's second quarter report showed that the fund had already been jiacang at the time when the relevant company's performance bottomed out in the second quarter, and the stocks with established performance points and prospects were favored by the fund, including Sanan Optoelectronics, Ruifeng Optoelectronics, and Huacan. Optoelectronics and other stocks by the fund against the market jiacang.

Sanan Optoelectronics, the leading stock in the sector, recently hit a new high during the year. Statistics show that in the first quarter, four funds, including Yinhua Growth, Yinhua Core, Yinmin Dividend, and Rongtong Leading, placed heavy stocks in the stock, holding a total of 38.64 million shares with a total market value of 420 million yuan. At the end of the second quarter, there were a total of 8 funds in this position, holding a total of over 50 million shares with a total market value of 690 million yuan. Among them, Yinhua’s three major funds, the consumption theme and the leading strategy and harmony theme, entered the heavy position, and Tianyuan Securities Investment Fund holds 5 million shares. The stock closed at 14.84 yuan yesterday, up nearly 40% from the end of the first quarter, and nearly 15% since entering the end of August. In the second quarter, the subsidy fund has lost a lot of money.

The Ruifeng Optoelectronics Quarterly Report shows that except for one of the top ten outstanding shares, which is a natural person, all others are held by the organization. A total of eight funds have a total holding of 9.6854 million shares, accounting for a circulation ratio of 35.87%. The Chinese company Taijinniu, Huatai Bai Rui, Agricultural Bank of China and China Advantage new advantages, ICBC Credit Suisse and Dacheng Wealth increased holdings. In the second quarter, ICBC Credit Suisse increased its holdings to 960,500 shares. At the end of the second quarter, it held 2,905,100 shares, which accounted for 10.76% of outstanding shares, ranking first in the top ten tradable shares. Cathay Pacific Taurus holds 2,217,100 shares, and Rongtong holds a lead of 1,359,300 shares, ranking the two or three of the top ten tradable shares of the stock. The Ruifeng Optoelectronics 2011 annual report shows 2011 net profit of 33,147,700 yuan, net profit growth rate of -24.65%, and this year's semi-annual report shows that the first half of net profit was 19,934,400 yuan, net profit growth rate contracted to -3.02 %.

Huacan Optronics, which was listed on June 1 this year, attracted 66 funds to participate in the inquiry before the IPO period. Although the first day of the IPO, the fund could be sold, the second quarterly report of the stock indicated that as of the end of the second quarter, 14 were thrown. The fund holds 16.33 million shares of this stock, which accounts for 32.66% of the circulation ratio. Among them, funds that were not allocated during the inquiry phase, such as China Post, China Post, and Xinda Ao Yin, were all new.

Performance and policy double positive market analysts said that the fund's large selection of the Jiacang LED segment is partly due to a bottoming out of performance, a positive industrial trend, and the release of market risks; on the other hand, related policy dividends will gradually emerge. Related companies Will benefit in the long term.

Qian Wenli, an analyst at Guohai Securities, said that in 2011 LED excess production capacity, the surplus rate has been declining since the beginning of this year in the context of increasing demand, currently falling from 34% in the fourth quarter of 2011 to 22% in the first quarter, the second quarter surplus. The rate has further dropped to 16%, and it is expected that the third and fourth quarters will further improve. With the gradual balance of supply and demand, prices have stabilized, and demand continues to rise, LED chip companies will enter a profitable time. The new orders of the related companies have already been placed after October, and the performance in the third quarter is highly certain.

With the release of relevant company’s semi-annual report’s performance risk and the rebound of LED ultra-low stocks gradually coming to an end, the third-quarter performance award became clearer. Zhou Jun, an analyst at Orient Securities, stated that “For investors, it is recommended to pay attention to the bid invitation of the government. Enterprises, as well as enterprises with inflection points in performance, are advised to focus on the leading companies in the industry chain at all stages.”

In addition to performance support, the relevant policies introduced by the government will bring long-term benefits to the LED industry. Last month, the "12th Five-Year Plan" for the development of semiconductor lighting technology was officially released. According to this plan, the industrial scale will be doubled several times during the “12th Five-Year Plan” period, and twenty or thirty leading enterprises will be cultivated. Industry insiders believe that such listed companies are expected to have such leading companies.

According to relevant government plans, starting from October 1 this year, incandescent lamps will be banned from selling and importing in stages, and incandescent lamps will be completely banned by 2016. Guotai Junan analyst Wei Xingyi said, “With incandescent lamp products gradually phased out, related industry support policies have been further implemented, and the market will continue to develop healthily.”

Jin Bailin consulting Qin Hong said that early this month, LED-related industry stocks have signs of strong financial intervention, "Although the development trend of LED lighting twists and turns, but the industry is still optimistic about the prospects, some funds have begun to increase positions."