After going through 3 years’ of recession, LED industry seems to revive next year. As the foreign capital USB Securities pointed out that in 2014 the global demand for LED lighting will increase by 60%, with the home lighting growing fastest, increasing by 90% next year, and expecting to bring 25% LED chip demand next year.
2010 is the peak for LED industry. Leijing faucet factory at that time could make more than half a capital stock in a year, with 7 yuan (New Taiwan Currency, the same below) EPS; Everlight Electronics, the encapsulation and brand factory also reached to 5.52 yuan. But then, LED productivity increased and the profits of Taiwan factories cut dramatically. The next year, the epistar fell down from heaven to earth. The EPS in 2011 was only 0.5 yuan and the deficit of EPS in 2012 was over 1 yuan; although no deficit, the EPS was halved year by year depending on cost control for the Everlight over the past two years.
After being through 3 years’ recession, the prospect of LED next year seems to have an upward trend and the major power is from lighting and the growth of the need for the backlight of tablet personal computer should not be ignored. UBS Securities of foreign investment pointed out in the latest LED industrial analysis report that if to calculate by the square of the chips, the need for LED general lighting will increase 62% next year. The LED lighting revenue will increase by 37% if taking the year-by-year price decline into account. In another word, the LED lighting permeability will reach from only 3%-5% this to 9% next year while the traditional incandescent light will decline by 5% each year.