Small-pitch LED display industry concentration is rapidly increasing

LED display screens are widely used in advertising media, sports venues, stage backgrounds, municipal engineering and other fields, becoming the most mature segment of LED applications. According to industry insiders, the technical barriers to small-pitch LED displays are high, and enterprises in the traditional display industry are difficult to cut in, and industry concentration is rapidly increasing. Entering the outbreak phase With the sharp drop in cost and continuous improvement in display performance, the small-pitch LED display industry is experiencing explosive growth and is in short supply. Small-pitch LEDs are replacing the DLP and other splicing screens in the market, and currently only replace about 20%. According to industry insiders, for the growth industry driven by technological innovation, when the market penetration rate is 20%-50%, the industry will enter an explosive phase. 2016 is the first year of small-pitch LED explosion. It is expected to maintain ultra-high growth rate in the next 2-3 years. By 2018, the market scale will be close to 10 billion yuan. Everbright Securities believes that the development trend of small-pitch LED has been confirmed by the industry, and it is expected that the compound growth rate in the next three years is expected to exceed 60%. In terms of listed companies, in order to adapt to the development of the industry, many LED display companies seek business transformation and upgrading. Among them, Lehman shares and Lianjian Optoelectronics have carried out relatively successful explorations in the fields of sports and media. Liard said that the small-interval display of the commercial market has come, the 100 billion civilian market is starting, the company will continue to maintain its leading edge, expand production capacity, strengthen channel construction, and achieve high-speed growth. It is understood that the current LED display is mainly used in advertising media, sports venues, stage backgrounds, municipal engineering and other fields. As small-pitch LED technology matures, it will be applied to more emerging fields in the future. Concentration improvement Previously, the LED display industry had lower thresholds and lower industry concentration. The industry's top ten market share was less than 10%. With the improvement of LED display technology and the scale effect, industry technology and capital barriers are also significantly improved. According to industry insiders, in this context, companies such as Liad, Lianjian Optoelectronics, Ai Biesen and Chau Ming Technology have rapidly emerged with advantages such as capital and cost. It is expected that in the next two or three years, among the LED display four Xiaolong, there will be 1-2 enterprises with incomes reaching or even exceeding 5 billion yuan. Taking Chau Ming Technology as an example, the company is a leading company in LED display and LED lighting products and solutions. The company continues to break through the technical bottleneck of small-pitch LED screens and enhance its core competitiveness through product upgrades, channel optimization and application field expansion. . In the first three quarters of 2016, Chau Ming Technology achieved total operating income of 672 million yuan, a year-on-year increase of 7.60%. The company further expanded and improved the serialization and standardization of the entire LED display product line. Abisen's third quarterly report shows that the company's small-pitch LED display achieved a contract value of about 142 million yuan, an increase of about 60% over the same period of the previous year, accounting for 46% of the company's total display orders in the third quarter. During the reporting period, the company's newly launched HDV small-pitch series products were the first in the industry to maintain small-pitch products in front of the wall, which was well received by the market.

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