Rare earth prices continue to rise, energy-saving lighting market is hot

The recently-increased attention to the rare earth price increase incident has made the energy-saving lighting market using it as a raw material greatly affected. The instability of raw material prices did not allow investors to stand still. Instead, it attracted more capital into the energy-saving lighting market, and the stock price of the energy-saving lighting market was generally higher. Experts said that it is the best time to enter the market now, and energy-saving lighting stocks are expected to maintain a rising trend within six months.

According to the information display, due to various reasons such as policies and markets, China's LED general lighting market grew by more than 150% in 2010, becoming the fastest growing LED application field. Driven by LED lighting, by 2015, the global LED market will maintain an average annual growth rate of more than 30%. In 2011, a rare shutdown of rare earths occurred in China, resulting in rare earth prices continue to climb, breaking the historical tipping point. Due to trade protection considerations for strategic materials such as rare earths, the country will further strictly limit the total amount of tungsten minerals and rare earths used for extraction and export quotas, which will help stabilize the price of rare earths. But at the same time, it also said that the rare earth price will continue to grow in stability, and it is difficult to see the expected decline.

With the promotion of energy-saving emission reduction and low-carbon economy, the domestic market for energy-saving lamps has become extremely fast. Compared to traditional incandescent and fluorescent lamps, LED energy-saving lamps have outstanding lighting effects, high safety performance, low carbon, and energy saving. Under the premise that the price of raw material market has risen and the cost of energy-saving lighting products has increased, the demand for LED energy-saving lamps has also continued to rise. Therefore, in the next two years, the energy-saving lighting market is still the hottest in the investment market. It is conservatively estimated that the total investment in the energy-saving lighting market this year will exceed 40 billion yuan.

Under the combined effects of various favorable factors, several domestic large-scale energy-efficient lighting listed companies such as Hongli Optoelectronics, Sunshine Lighting, and Foshan Lighting have all experienced a rising trend in different degrees, among which Hongli Opto-electronics has obtained 22.97 in the industry this year. The valuation of ~26.79 yuan has more room for growth of 30%, while other companies also have good room for growth, which is suitable as a choice for short-term investment.