Display power supply "not listed"

How big is the LED display power supply market?

According to the statistics of the LED Research Institute (GGII) of the High Industry and Industry Research Institute, the market size of China's LED display power supply in 2021 is about 2.85 billion yuan, an increase of 9.62% year-on-year. From 2015 to the present, the LED display power supply market size has increased by nearly 50%.

With the maturity and improvement of LED display, especially small-pitch display technology and technology in recent years, and the rapid decline in cost, small-pitch LED display has opened up more application scenarios. This has also led to the development of LED display power supplies.

According to GGII incomplete statistics, the number of LED display power supply companies in the country has exceeded 130.

However, LED display power supply is still difficult to say is a good business. Today, the SITUATION of LED display driver power supply industry with a market size of nearly 3 billion yuan is quite embarrassing without a pure A-share listed company.

In the lighting drive power supply market has a number of A-share listed companies in the background, even individual listed companies like Magmitt also have LED display power supply products, but the proportion of its total revenue is still too small, not its main business.

But in fact, the leading Chuanglian Power has already started its IPO journey.

Why is it so difficult to give birth to the "first share of LED display power supply"?

1

The leader embarks on an IPO journey

On November 12, 2020, the Jiangsu Securities Regulatory Bureau accepted the initial public offering of shares and listing counseling registration materials of Chuanglian Power. Counseling brokers for Minsheng Securities.

According to the information on the official website of the Jiangsu Securities Regulatory Bureau, as of now, Minsheng Securities has disclosed three phases of the filing report on the initial public offering of shares and listing counseling of Chuanglian Power.

From its establishment in 2000 to the preparation for listing, Chuanglian Power has gone through 20 years.

According to the data, Chuanglian Power is specialized in the research and development, manufacturing and sales of display power supply, landscape lighting power supply, waterproof drive power supply, industrial control power supply and other products. Products cover more than 2,000 specifications and varieties, after years of development, Chuanglian has grown into an excellent enterprise with an annual output of more than 18 million units of various power supplies.

Among them, LED display power supply is its largest source of revenue business.

Chuanglian Power currently has three major brands of "Chuanglian", "Chuangjin" and "Soslide", of which the "Chuanglian" brand focuses on the high-end market, which has been well-known in the industry at home and abroad, and is deeply loved by customers; "Chuangjin" brand focuses on higher cost-effective experience products, which is a sharp tool for channel wholesale; "Soslide" brand is mainly for the high-end LED display market. In addition to meeting the needs of the domestic market, Chuanglian power products are also exported to more than 50 countries and regions such as Europe and the United States, Africa, Latin America, the Middle East, and Southeast Asia.

GGII from the market research information shows that the current Chuanglian power supply in the LED display power market share ranks in the forefront, its main customers include powerful giant color, Leyard and other display leaders.

In July 2021, the cultural performance "The Great Journey" celebrating the 100th anniversary of the founding of the Communist Party of China was held at the National Stadium Bird's Nest, as a behind-the-scenes support for the LED display, and Chuanglian Power Supply supported the Bird's Nest Stage and the Tiananmen Square Screen. The A-200FBP-PN (Current Sharing Backup) series illuminates the nearly 10,000m display portfolio to help create the world's largest immersive stage.

It is worth noting that Chuanglian Power was listed on the New Third Board in August 2016, but terminated its listing in 2018.

In addition, in 2017, Infilt had planned to acquire Chuanglian Power, but terminated the acquisition because it could not agree with Chuanglian Power on some core terms.

2

Selling display power is a door chore

Although the LED display market has maintained a high growth in recent years, it is not so good in terms of display power supply.

"Selling display power is actually a door chore." There are LED display power supply enterprise sales executives told senior workers LED, power supply accounted for a small proportion of the entire display cost, the value is not high, coupled with some enterprises low-price competition, the market is also more chaotic.

GGII research learned that the current market LED display power supply low-cost competition is serious, resulting in the company's profit margin continues to shrink. The price of display power supply ranges from 35 yuan to 150 yuan.

Some display companies familiar with this market said that the channel market generally applies more LED display power supplies with a price of about 40 yuan, and the price of ordinary project-type display power supplies is between 60-70 yuan. The price of power supply for high-end project applications is more than 100 yuan.

With the development of LED display technology, special-shaped screens, outdoor glasses-free 3D, Mini/Micro LED displays have put forward new and higher requirements for display power supplies, and the demand for special power supplies for different types of LED displays is also growing.

3

The small market space is a pain point

At the same time, the competition in the LED display power supply market is becoming more and more intense.

GGII survey data shows that the number of LED display power supply companies in the country in 2021 is hundreds, which does not include some enterprises that also do LED display power supplies.

At the same time, some enterprises that previously focused on LED lighting power supplies began to enter the display power supply market. There are also some screen companies that have acquired power supply factories to supply their own display power.

For the leader of Chuanglian Power, competitors include power supply factories in Taiwan such as Mingwei, etc., as well as some domestic power supply factories that are not as large as themselves, but whose products are recognized by mainstream screen enterprises, such as Nova, Huayun, Ande.

Industry insiders believe that there is no pure A-share listed company in the display power supply market, mainly because the market is too small.

According to GGII's forecast, in 2022, China's LED display power supply market will exceed the mark of 3 billion yuan to reach 3.12 billion yuan. GGII expects the LED lighting power supply market size to reach 30.6 billion yuan in 2022, which is nearly 10 times the size of the display power supply market.

However, with the continuous expansion of LED display in professional display, commercial display and civilian display, the trillion-level LED display market will surely give birth to a number of LISTed companies with LED display power supplies.