Interpretation of the semi-annual performance forecast of the six major LED display brand companies

There are many LED manufacturers, such as Opp, Foshan Lighting, NVC, Philips, Osram, Sunshine, TCL, Panasonic, Yaming, Honglian, Sunshine, Yuzhong Gaohong, Qinshang Optoelectronics, Guoxing Optoelectronics, Fangda, etc. . How to stand out in the fierce competition is not only cost-effective, but also requires good word of mouth. The brand effect is now beginning to show.

In the field of LED displays, the brand effect is also beginning to emerge. We can interpret some brand benefits from the semi-annual report of LED display companies. Recently, domestic LED display listed companies have released the 2016 semi-annual performance forecast. From these figures and behind, you can see some trends in the LED display industry.

Alto Electronics:

The reason for the change in performance was the increase in sales revenue, the increase in the proportion of new products, the increase in gross profit margin, and the increase in exchange gains. According to the 2015 performance report, Alto Electronics achieved a net profit of RMB 21,022,783.51 in 2015, down 68.77% year-on-year due to the decrease in sales revenue, increased operating costs and increased investment in new sports industries. The first quarter 2016 results report showed that despite the decline in corporate profits in the first quarter, the overseas market grew gratifyingly. From January 1 to March 31, 2016, the company has obtained export contract orders for LED display products for USD 19.4 million. More than the total number of export orders for LED display products obtained in 2015, most of them are LED high-density products.

Comments: Alto's expansion of the sports industry's new business strategy has begun to appear gradually, the small-pitch LED display export business has become the driving force of the company's performance.

Lehman shares:

The reason for the change in performance was that the company actively implemented the high-tech LED and sports dual-main development strategy during the reporting period, and the main business maintained a stable development. The growth of the performance was mainly due to the inclusion of the wholly-owned subsidiary Shenzhen Tuoxiang Technology Co., Ltd. in the consolidated financial statements. At the same time, continue to increase the development and marketing of sports resources, the marketing revenue of sports resources has increased significantly. According to the 2015 annual performance report, the company's sports business operation revenue last year was 38.12 million yuan, a year-on-year increase of 120.46%, and the economic benefits were prominent. In the first quarter of 2016, the company reported that the company achieved a total income of 9.183 million yuan in sports business operations in the first quarter, an increase of 84.61%.

Comments: The two main business strategies of high-tech LED and sports media have achieved remarkable results, especially the sports media business has realized a profit-sharing mode from hardware to service.

Zhou Ming Technology:

The reason for the change in performance was due to the continuous increase in orders and revenue of the parent company's overseas market during the reporting period and the increase in the shareholding ratio of Shenzhen Radio Vision Technology Co., Ltd. The 2015 annual performance report shows that the planning and deployment of the company's overseas market business and UTV small-pitch display products have been actively and effectively implemented. The export revenue and market share have increased significantly year-on-year. UTV small-pitch products have experienced rapid growth in order revenue, and the company has expanded. The integration effect is good, and the acquisition of Radio's business continues to improve. The first quarter report shows that the trend of change triggered by the extension of the industry chain has not been reversed, and the boundaries between manufacturing and service industries are becoming increasingly blurred. The company has established a development strategy of “Industry + Internet + Finance”. In terms of LED display, the company and Redio will actively explore the main business as a link, assist Internet tools, and provide advertising services, creative vision, media/match operations, etc. The field of cultural media extends.

Comments: The small-pitch LED display and the overseas market have obvious pulling effects. At the same time, the organic combination of manufacturing and service industry has become a potential profit point in the future.

Lianjian Optoelectronics:

The reason for the change in performance was the steady growth of the company's endogenous and extension, the expansion of sales scale and the increase in orders. In 2015, the company focused on becoming the strategic goal of “Digital Outdoor Media Group” and continued to adhere to the development strategy of both endogenous and extensional development, making the 2015 performance significantly higher than the same period of the previous year. In the first quarter, the company's advertising media business revenue increased by 27.53% year-on-year. It has successively acquired part and all equity interests in Tree Bear Network, Linkage Investment, and GreenOne Media. It plans to complete the acquisition of Shenzhen Lima, Huaying Culture, and Litang Marketing in 2016. Part and all of the shares of Ocean Shipping Media are strongly positioned in the digital media market.

Comments: In the era of LED display enterprise "hardware", the joint construction began a large-scale layout to the media field. This strategy is undoubtedly quite effective. Through mergers and acquisitions, etc., Lianjian intends to build a media industry aircraft carrier to maintain its leading position in this field.

Liard:

The reason for the change in performance was the expansion of sales scale and the increase in orders. In 2015, the company's LED small-pitch TV market reflected good results and orders increased. The acquisition of Jinda Lighting, Lifeng Culture, Jin Lixiang and Pingda and other companies have obvious synergies, especially the addition of Pingda has further boosted orders in overseas markets. In the first quarter, small-pitch LEDs still strongly boosted the company's performance growth.

Comments: The small-pitch LED business has become the main driving force of the company's performance. At the same time, the company also actively explores the cultural industry layout through acquisitions and cooperation, and will form two major business sectors of culture and technology to explore the new driving force.

Abbyson:

The reason for the change in performance was the expansion of sales scale and optimization of sales structure. In 2015, the company's performance declined, mainly to increase the layout of the LED display industry, set up a number of overseas companies, increase the market expansion costs of domestic and overseas companies, increase investment in new product research and development, and increase the layout of hotel business. However, the small spacing is still eye-catching, achieving 337 million yuan orders, accounting for 33%. In the first quarter, the small-pitch realized orders of 103 million yuan, a significant increase, while the hotel business operations steadily advanced, and brought considerable income.

Comments: Small-pitch LED and hotel industry have become the driving force for the company's performance growth.

Summarizing the performance of the above listed companies, we can see that in the highly competitive LED display market, the core of the profit growth point can be summarized as: new products, new markets, new business three points.

New product:

This is not difficult to understand. In recent years, the competition in the LED display industry has intensified, the price of homogenized products has been declining, and the profit margin has been narrowing. Therefore, it is necessary to increase investment in research and development and achieve product innovation in order to increase profitability. Including product type innovations, such as small-pitch LEDs with extremely high market heat. It also includes functional innovations in traditional products, namely product optimization for sub-segments, such as the S-Series launched by Zhou Ming for digital signage applications.

New market:

It is not difficult to see that in the first half of the year, the overseas market occupied a relatively important position in the revenue of LED screen enterprises. In particular, in recent years, the performance of sports screens and small-pitch LED screens for overseas markets has been remarkable. Therefore, it is not difficult to understand why many companies continue to increase their efforts in overseas market expansion. However, there are many factors in the overseas market, and companies should pay attention to avoiding risks.

new business:

Business innovation can be said to be the focus of LED display companies in recent years. This includes the cultural media business area, joint construction, Liard, Zhou Ming and so on. It also includes innovations in the business sector, such as Lehman and Alto's entry into the sports industry, and the innovation model of Abisen's innovative hotel industry.

It is worth emphasizing that virtual reality (VR) and augmented reality (AR) will become a hotspot in the LED display industry. LED large screen combined with VR and AR technology in outdoor and indoor (small pitch), has great application potential in education, entertainment, medical, defense, real estate and other industries. At present, Liad, Chau Ming, Lianjian, Lehman and other enterprises have begun to relevant layout, and it is expected that more relevant projects will be seen from 2016.

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