Op lighting LED industry expansion and integration
The rapid development of the LED lighting industry, the superposition of the international giant's poor management and withdrawing from the Chinese market, has accelerated the consolidation of the industry. As a lighting faucet, Op has outstanding advantages in scale and cost, uses standardized product drainage, has a high degree of recognition of brands and products, maximizes consumer value with high premium products, and promotes ceilings from products to service development, optimistic about the company's market share steadily increasing. . It is estimated that the growth rate of income in 18-20 will be 28%, 27% and 27% respectively. In the process of industrial integration, single competition will shift to comprehensive competition in scale, technology, cost, and brand. The dominant enterprises will eventually get their pricing back with professionalism. By that time, profitability will increase, profit elasticity is expected to be released, and profit growth is expected to be 18-20 years. It is divided into 30%, 31.8% and 32.4% respectively.
The integration of LED lighting industry is in progress and has broad prospects. The LED general lighting market in 2017 is about 255 billion RMB, and is expected to reach 445.2 billion RMB in 2020. The compound growth rate is expected to be 20.4%. At present, the concentration of LED lighting industry in China is low, leading market share of 3-5%. Due to technical upgrades and cost pressures, the difficulties of SMEs' survival have accelerated, and international giants have withdrawn from the Chinese market due to their own operational factors. Domestic brands have ushered in a brilliant opportunity for integrating the future LED industry. Leading Op lighting is most likely to emerge.
The channel creates core competitiveness, integrates, expands, and improves efficiency. Lighting as a channel leading industry, the company has a core barrier, which is to deepen the country's channels for many years, has more than 3,500 stores, more than 100,000 terminal sales outlets, through the input and integration to build an efficient operation of the channel network, operating efficiency leading the industry. In addition, the company continued to invest in channel integration, expansion, and efficiency improvement. It expects to expand thousands of new stores in 18 years and upgrade the area to “1,000-pyeong shop”. Through system control and control of terminal inventory and even consumers, the company will strengthen its channel network.
Standardized, differentiated product dual-wheel drive seizes market share. With the cost advantage brought by large-scale production, Op will adopt low-cost measures to standardize products to attack weak companies and expand market share. At the same time, with its own research and development, design advantages, the introduction of high-brand premium decorative lights, crystal lamps and other differentiated products to increase customer prices. Channel advantages and product advantages are jointly developed. Standardized product volume and differentiated products win premiums, while volume and price seize the market in parallel. In the industrial integration, enterprises with excellent products will eventually get back the pricing power with professionalism, and profit elasticity is expected to be released.
Valuation: As a leader in the LED lighting industry, Op has its manufacturing scale and cost advantages, and its product, channel and brand composite advantages are outstanding to ensure its market position. With the rapid expansion of the LED lighting industry and accelerated integration, the company’s market share is expected to increase further. It is expected that the company's revenue in 18-20 will be 8.903 billion RMB, 11.297 billion RMB, 14.322 billion RMB, net profit attributable to the mother will be 880 million RMB, 1.17 billion RMB, 1.549 billion RMB, and EPS will be 1.53 RMB, 2.02 RMB, and 2.67 RMB.