Touch screen LED market explosion

Benefiting from the trend opportunities in the rising cycle of prosperity, the prospects for semiconductors, magnetic materials, and PCBs are promising. In the new component field, the market space for touch screens, LEDs, and new energy devices is extensive. In addition, the field of security video surveillance deserves special attention.

In the second half of this year, the electronic component industry is in a period of boom cycle

The increase in price of products brought about by the increase in demand and the increase in the operating rate of product lines will become the main catalysts for this year's industry. The year 2010 is the boom year for the electronics industry. Looking at the semiconductor business cycle, this round of traditional electronics industry will continue into the mid-2012 period. A large cycle is roughly divided into two small cycles of comparable duration. Judging from the experience of the industry, there will be certain industry adjustment pressures in the middle of 2010, but the magnitude will not be too great, the time will not be too long, and will not change steadily. Taking into account the current market consensus and the premise of the global macroeconomic recovery in 2010, the adjustment of the industry's small cycle may be further weakened.

As of June 18, the electronic components sector rose 0.9% in 2010, ranking second. Judging from the market valuation, the price-earnings ratio of electronic components is 58.1, ranking second in the A-share sub-sector; the company's book-to-book ratio is 4.5 times, ranking fourth in the A-share sub-sectors. Judging from the historical valuation of the past five years, it is only lower than in 2009 and 2007, and it is at a higher level of historical premium. At the same time, from the historical perspective of the past five years, several indicators such as gross profit margin, net interest rate, and return on net assets of the electronic components sector are at historically higher levels, which also indicates that the entire sector is within the business cycle.

Based on the above analysis, it can be seen that the overall valuation of the current plate is reasonable. The second half of the year is the traditional peak season for the electronics industry. The third and fourth quarters are still worth the wait. However, due to the influence of uncertainties such as the European sovereign debt crisis and exchange rate fluctuations, as well as inflation, the uncertainty in the development of the industry has increased and there is a risk that the center of gravity of the entire sector will move downward.

There are more uncertain factors in the economic situation in the second half of the year, which makes the industry uncertain

At the same time, the pace of capacity migration in the component industry will further accelerate in the second half of the year. We must pay special attention to the core areas of the transfer, such as: domestic cost advantages bring competitive advantages (middle and low-end production capacity transfer) --- semiconductor manufacturing packaging, magnetic Materials, LED; strategic transfer of overseas companies (middle and high-end production capacity transfer) --- polysilicon, LCD panels, PCBs, optical acoustic devices. The transfer of production capacity has led to an increase in the global market share of domestic products, more abundant export products and higher added value, and the import substitution rate of many products in the domestic market has further increased.

The market for new components, such as touch screens, LEDs, and photovoltaic device components, has soared

According to the analysis, the major investment opportunities in the second half of the year lie in sub-industries and companies with better growth, and the key areas should consider new application areas with rapid market growth and policy-oriented areas such as triple play, wireless interconnection, internet of things, and new Energy, and considering the opportunities brought about by the upgrading of consumer electronics, these new areas have led to a surge in the market for new types of components such as touch screens, LEDs, and photovoltaic device components.

With the popularity of touch-enabled mobile phones and game consoles, the touch panel market has expanded again. According to a report from DisplaySearch, the market size of touch panels in 2009 was approximately US$4.3 billion, and the market size in 2014 will exceed US$11 billion and will reach US$13 billion in 2016. At present, the iPhone is selling hot in the global market, leading to mobile phones becoming a representative product for expanding touch panel applications. According to the data provided by DisplaySearch, the ratio of mobile touch panel was 15.8% in 2008, and it quickly expanded to 25.7% in 2009. It is expected that it will reach 57% in 2016. In addition, more and more devices are equipped with touch screen panels, DisplaySearch analysis, From the perspective of future market prospects, the application of touch screen panels on tablet PCs, all-in-one hosts, netbooks, and portable Internet devices will accelerate.