LED lights have reached the level to fully replace energy-saving lamps

According to Shanghai Securities analysis, the price range of LED white light is now close to that of energy-saving lamps, and the LED industry will enter a mature development period in the future.

From a cost perspective, LED lamps in the general lighting sector have reached the level to fully replace energy-saving lamps. The future market growth rate will exceed the price decline, and the overall profitability of general lighting companies is expected to recover to a reasonable level, especially downstream application production companies, which will rely on the market advantage to obtain profits first, but ultimately the profits will gradually shift to the oligopolistic upstream.

From the perspective of valuation and profitability, it is recommended to pay more attention to low-end chip design and chip manufacturing as well as application product sales in the general lighting sector.