First half of the Market Review : October SWS one half of the entire industry , in addition to household appliances sector , the other decreases are negative growth plate up , where Shen Wan electronic sector index rose down -8.59 %, while the CSI 300 down -4.00 % and Shanghai Composite down -4.30 % , respectively, electronics sector underperformed the CSI 300 and the Shanghai Composite Index 4.59 and 4.29 percentage points. Electronic blocks subdivided plate, electronic plates five sub sector indices fell , other electronics , optics photonics, semiconductor manufacturing declines of -7.34 % , -7.6 % , -7.93 % , better than the electronic sector index ; while the component , electronic manufacturing fell more than the entire electronics sector , declines of -9.69 % -10.67 % . Investment advice: We give the electronics industry "neutral " investment rating. As of October 31 , the electronic sector trades at 53.08X, although half of the month compared to October decline , but relative to earnings growth , valuations remain at a high level . From the three quarterly disclosure of listed companies situation, the overall performance of the electronics industry growth over the third quarter of this year in the second quarter decline. Looking fourth quarter, the industry may face the situation is not busy season , but next year a quarter of the industry's traditional low season , so we think the short term it is difficult to have a greater degree of economic recovery .( 1 ) PC market in the second half continued in the doldrums , with end-market demand is not as strong early estimates , in the fourth quarter of the semiconductor equipment orders monthly bill ratio may continue to slip . Next year as demand improves, the semiconductor plant capital spending next year better than expected this year . ( 2 ) the recent lackluster sales of Apple's new , new ipadair sales will also be expected to be difficult than expected , given the apple industry chain cautious. Intelligent end market sales growth from high intelligent devices turned promote low-priced equipment , proposes a focus on low-end smart device industry chain. ( 3 ) in the home appliance subsidy policy is expected to re- start , the fourth quarter will start restocking backlight , TV backlight demand is expected to resume growth . As the LED market competition , the terminal lighting products prices fell significantly , will stimulate the market to buy gas . By 2014 , LED lighting market value of $ 35.3 billion , compared with 2013 growth of 47.8% penetration rate will increase to 32.7% , so we think the LED industry high degree of prosperity will continue. We believe in the electronics industry chain gradually transferred to the Chinese mainland in the background, some of the leading enterprises grow larger space is expected to benefit from a positive recommendation when buying quality stocks down .
