Chinese research institutes have been interviewing listed companies after the Chinese New Year to get a better picture of the 2014 “investment guide,” according to Chinese media Sina.com report. As the industry rebounds, investors are also following research institute’s lead of entering into specific manufacturing fields to explore opportunities and determine whether the industry will generate a new gold wave. 

LED to succeed Technology, Media and Telecommunications (TMT)

Chinese research institutes “favoritism” towards the TMT industry faded after the Chinese Lunar New Year. Instead interest has been turned towards investment strategies in the LED industry.

On Feb. 12 and Feb. 14, China’s leading LED package manufacturer Nationstar Optoelectronics (Nationstar) accepted interviews from China Galaxy Securities, Rising Fund, and a Shanghai financial institute. Nationstar revealed during the interviews that it planned to expand packaging capacity in 2014, and will be gradually promoting the company’s vertical integration in the LED supply chain.

Qilu Securities and China International Investment Stock Group conducted a survey on semiconductor manufacturer Changelight on Feb. 11, 2014. During the survey, Changelight responded to its InGaN investments for the first time, and said it is considering entering the InGaN market.

Since the start of this year research institutes have been paying attention to the LED industry. A Shanghai financial institute joint survey indicated four out of the five companies surveyed from the Pearl River Delta region were LED manufacturers including Electech International (ETI), Foshan Lighting and Liantronics.

Some financial institute analysts pointed out in comparison to the overall electronic industry performance, the LED industry is being supported by good performances. In 1Q14, the LED industry will become an important development direction in Spring 2014, due to its performance and concept.