| Summary: | 碩士 === 國立中央大學 === 財務金融學系碩士在職專班 === 100 === Light-emitting diode is widely applied to mobile phone backlights, traffic lights, automotive headlamps and large-size backlight modules due to its energy-saving character, which its most extensive application in the future will be the lightening in the world. Especially after Kyoto Protocol and agreement of Copenhagen are signed, raising the energy efficiency has become a significant policy that many governments promote actively. Undoubtedly, the LED industry has great potential to develop. Once the manufacturers in Taiwan had the complete industry chain to expand the output value due to their integrated effect; however, with the continuous progress of technology and the governments’ promotion to the energy policy, the entrants become more and has lead to a violent competition, which is greatly influencing on LED industry. This research will probe into the status of LED industry, the impacts on the representative manufacturers, and finally providing suggestions for adjusting the business model. Mainly the research method for this paper uses case study, accompanied by historical literature and document analysis, which makes this research become more objective. Thus, there will be a further view of the company in the case study and realize its attitude to face the challenges in LED industry. This research utilizes Porter Five Forces Analysis to find out the chances and threats of the company in the case study, analyzing their strengths and weaknesses via the four factors in the business model and integrating them as SWOT Analysis to provide appropriate suggestions. Finally, it will apply the DCF valuation model to seek for the proper corporate value and fair share price.
Via the result of this research, Epistar holds its great potential and opportunity to develop in the market because the LED industrial structure in Taiwan is complete and has smooth marketing channels, which lets Epistar have a certain economic and technical scale to expand the market share. Meanwhile, Epistar faces a more and more drastic competition in the market with other manufactures that not only comes from the Eastern countries but also those manufacturers supported by PRC and South Korea. The strengths of Epistar depend on their strong management team, stable technology and high quality, with possessing many business partners; the weaknesses lie in the rising labor cost, the low efficiency in asset turnover…etc, which need to integrate the resources and update their efficiency. From the viewpoint of enterprise evaluation, the most likely value of the stable share price for Epistar possibly fluctuates slightly after April, 2011. Excluding the negative effects from the European Sovereign-debt Crisis that had led to the share price declined below its lower limit.
According to the above research result, here suggests the four methods to raise the competitiveness: Strengthen the R&D ability and the strategic alliance, initiate the blue ocean strategy, increase the management efficiency, lower the cost, expand the economic scale, update the product range, and integrate the resources to raise the competitiveness in cost and management. From the viewpoint of Business Valuation, the Discounted Cash Flow Model has the certain accuracy to predict the share price of the LED industry.
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