UBS: Electech to Focus on Distribution Channels and Brand Building

News Source: 
UBS

Lower prices and government policies have stimulated the initiation of LED general lighting. From 2013 to 2015, the global lighting market will grow at 36 percent, 37 percent and 38 percent respectively. The residential LED lighting market demand will grow 157 percent, 90 percent and 62 percent respectively.

Electech currently has in possession 92 MOCVD equipments, just slightly behind San’an Opto. However, due to objective and subjective reasons, equipment utilization rate is only 50%. UBS projects as the LED industry rebounds, MOCVD utilization rates should gradually increase. Ideally, the company’s chip production capacity will be fully utilized in 2014, and potentially has significant flexibility.

Lighting Distribution and Brand Building To Become Company’s Major Focus

At the end of 2012, Electech strategically acquired 20.24 percent shares from NVC Lighting through private placement, and became the company’s largest shareholder. NVC Lighting has the strongest distribution channel and brand advantages in China. Electech and NVC Lighting business partnership includes the use of NVC Lighting brand names on Electech LED light source products, and access to NVC Lighting’s distribution channels. In oversea markets, Electech has also received brand licensing from AEG, Whirlpool Corp. and other brands. Through cooperating with competitive Chinese and foreign companies, UBS noted Electech has acquired a good position in distribution channels and brand building. The company’s related product sales volumes are expected to further increase. 

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Tokushima, Japan - 6 March 2024: Nichia, the world's largest LED manufacturer and inventor of the high-brightness blue and white LED, has started mass production of the new UV-B (308nm) and UV-A (330nm) LEDs in its popular 434 Series packa... READ MORE

New XLamp® S Line LEDs enhance growth, last longer, lower energy costs Horticulture and other forms of agricultural lighting require application-tuned ratios of spectral content, high efficacy and long lifetimes. Whether you are interested... READ MORE