Benefit from the upgrading of the product structure or the growth of new business growth in the first three quarters of the color TV giant

Liu Li

09 November 2018, 08:11 source: Information times
Original title: benefit from upgrading of product structure or growth of new business

Driven by the world cup this year, the performance of color TV enterprises has been improved. According to the 2018 three quarter earnings report of listed companies that have been released recently, TCL, SKYWORTH, Changhong, Konka and other color TV giants are showing growth momentum in the first three quarters of this year, especially the profit level has increased by more than 30% over the same period last year.

However, from the overall perspective of the color TV industry, market sales in the third quarter of this year dropped by 15%, a record low, indicating that the annual performance of the color TV industry is still facing great challenges. Insiders said that double eleven business opportunities and the price of the panel are expected to continue to fall, which will be favorable for the fourth quarter.

Net profit increased substantially over the same period

The 2018 three quarter earnings report issued by SKYWORTH digital shows that the operating income of the reporting period is about 5 billion 473 million yuan, an increase of 6.45% over the same period, and the net profit attributable to shareholders of listed companies is 230 million yuan, up 370.55% over the same period.

TCL group three quarterly report also shows that the group achieved operating income of 82 billion 240 million yuan, an increase of 0.03% over the same period, attributable to shareholders of listed companies net profit of 2 billion 490 million yuan, an increase of 30.6% over the same period last year. The performance of its "TCL Electronics" listed on the main color TV business is also very eye-catching. The first three quarters achieved strong sales growth, and TV sales exceeded 21 million 120 thousand units, an increase of 31.1% over the same period last year, and successfully completed 82.5% of the original annual target 25 million 600 thousand, and 7 million 950 thousand sales in the third quarter, a record high in the single quarter.

The analysis shows that revenue has increased slightly, and net profit has increased significantly, indicating that the company's product structure upgrading has achieved remarkable results. It is understood that as the first tier of color TV industry, SKYWORTH and TCL are pushing high-end products this year to seek higher product premiums. Among them, SKYWORTH mainly focused on high-end TV OLED, which began to invest in OLED TV as early as 2008. Now 10 years later, SKYWORTH has begun to "pick fruit" - which has occupied 46% of domestic sales in the OLED TV market.

TCL said that profit growth mainly came from the steady growth of intelligent terminal business, including sales of smart TV and 4K TV, with sales volume of 15 million 210 thousand units and 6 million 110 thousand units, an increase of 49.1% and 63.6% over the same period last year. According to China Yikang's full channel data, the TCL TV brand price index increased from 112 in the first three quarters to 112 in the first quarter, rising from third in the same period last year to second.

Changhong and Konka, as the second tier industry, also handed out a handsome performance report: Sichuan Changhong achieved a 57 billion 839 million operating income in the first three quarters, an increase of 5.48% over the previous three quarters; net profit attributable to listed companies was 205 million, an increase of 43.92%; in the first three quarters of Shenzhen Kang Jia, the operating income was 29 billion 760 million yuan, up 47.6% over the same period; the net profit of shareholders belonging to the listed company was 4 billion 298 million yuan, an increase of 233.6% over the same period.

For the growth of performance, Changhong, which has been implementing smart transformation for several years, said that the transformation effect has begun to appear, and the cost control has been effectively controlled. The growth of Konka's revenue is mainly due to the growth of new businesses such as environmental protection, new materials, chips and so on. Shenzhen Kang Jia A also said that the proceeds from the sale of some of the shares of the subsidiary company had a greater impact on net profit.

Double eleven or break the stagflation of the market

Despite the collective growth of the above three color TV giant's performance (especially net profit) in the first quarter of the year, but in the view of senior industry observer Liu Bu Wei, this is mainly due to the low performance base of the same period in 2017, of which the net profit of SKYWORTH and Changhong in the first three quarters of the year were 85.9% and 68% respectively.

Also worth noting is that from the industry level, in the third quarter of last year, the price of color TV market was worst in the three quarter, and retail sales fell 12.9% compared with the same period last year. However, in the third quarter of this year, under the background of the downward trend of panel prices, the color TV market has hit a new historical low. According to the latest data released by Orville cloud network, the sales volume of the 2018 third quarter color TV market was basically flat with last year, but the sales volume dropped by 30 billion 300 million yuan, down 15.2% compared with the same period last year. This means that the value of the industry chain is at a very low level.

The three quarter's stagnation of color TV market caused by the unfavorable National Day promotions, diminishing online driving power and low price expectations. Jie Meijuan, director of Research Department of AVC, told reporters that the fourth quarter's biggest focus was double eleven. In the 51 and eleven traditional promotion nodes, the driving force gradually weakened, the industry bet more focused on the double 11. She predicts that the total retail sales of color TV will reach 4 million 60 thousand units in double 11 weeks. Overall, 2018 will maintain a resumption of growth in the first half of the year, and the scale of the annual color TV market will reach 48 million 630 thousand, an increase of 2.3% over the same period last year, and retail sales will drop by 8.7% over the same period last year, to 148 billion 900 million yuan.

Jie Mei Juan also said that in 2018, the global panel production capacity will continue to increase, and the supply and demand ratio will reach more than 5%. Panel supply and demand as a whole is loose, and the price of panels is expected to continue to fall. The cost pressure of color TV enterprises will ease again. With the demand side and supply side improving, color TV enterprises are optimistic about market size expectations.

(Editor: Wu Zhenguo, Sun Hongli)

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