The hottest TCL broke through the siege with LCD p

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TCL broke through the black electricity lost through the LCD panel for ten years, and now it is dawn

even investors looking for dilemma reversal opportunities have not paid attention to the black home appliance industry for a long time. The fierce competition and low profits that have lasted for more than a decade have gradually marginalized this industry. Therefore, many people are very surprised by the double rise of TCL Group (2.17, -0.02, -0.91%) and Skyworth [Weibo] Digital since the middle of last year

compared with the white appliance industry, which gave birth to Gree, Midea, Haier and other international brands, the situation of black appliance enterprises in recent years can only be described as bleak. Also benefiting from urbanization, real estate bull market and consumption upgrading, black power enterprises can only survive in the fierce competition. Since 2000, the annual sales volume of domestic TV has almost stabilized in the range of 30million-40million sets, and the demand has not been significantly improved, while the demand for white electricity such as air conditioning has increased rapidly

therefore, investors are still cautious about blackouts. Under the influence of factors such as the end of energy-saving subsidies, TCL almost spit back all the gains since this year, while Skyworth Digital fell 10%

however, for TCL group, which has made great efforts to enter the upstream panel industry, the plunge in TV sales in June after the end of the energy-saving subsidy has only a short-term impact. The company's multimedia business director predicts that there will be a recovery in August and September. The most important focus of the company in the next few years is the Huaxing optoelectronics 8.5 generation LCD panel project with an investment of 24.5 billion

to be fair, LCD panel is in the middle of the TV industry chain, and it is not a hot cake, and its profitability is not comparable to the more upstream core parts business. For example, Corning's glass, 3M's brightening film, etc. due to high technical barriers and oligopoly, the gross 189 tower crane's interest rate is as high as 50%. BOE, which focuses on LCD panel business in China, has suffered operating losses in six of the past eight years, and basically relies on government subsidies for its livelihood

but the turnaround may occur on the 8.5 generation panel, but due to the influence of volume, use position and so on. A few years ago, China did not shake the fact that LCD panels were almost 100% dependent on imports, but the financial crisis led foreign enterprises to slow down capital expenditure, while domestic enterprises invested heavily in panel projects. Therefore, after production, the relationship between supply and demand is relatively reasonable, and the demand for import substitution is very strong. It has entered the supply chain of Samsung [Weibo], Panasonic, Sony and other international enterprises. The quarterly report shows that csot achieved a net profit of 400million yuan in the first quarter, which is the main source of TCL Group's profits

CITIC Securities pointed out that in the second quarter, the investment volume of Huaxing optoelectronic glass substrate was 339000, second only to 342000 in the fourth quarter of last year, with full capacity utilization and high yield. TCL's interim performance forecast also pointed out that during the reporting period, csot achieved full production and sales, and its operating profit increased significantly year-on-year, becoming the main driving force for the group's profit growth

at present, the self-sufficiency rate of domestic LCD panels is only 30%. Looking forward to the future, several 8.5 generation panel lines including Samsung and sharp will be put into production in China in succession within three years. Industry insiders pointed out that by then, the domestic panel self-sufficiency rate may reach about 80%, and there will still be no vicious competition

the breakthrough from terminal products to the midstream of the industry is only the beginning of TCL's whole industry chain strategy. Samsung's R & D investment accounts for 6% of its revenue, while TCL's current gross profit margin is only 17%, and its net profit margin is less than 3%. Only when the panel business is profitable and brings sufficient cash flow, can the company be able to increase R & D investment and build business barriers that also set pressure equalization rings

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