In recent days, Hisense Electric released three quarterly reports, but its net profit announcement has aroused a hint of concern for many investors.
Hisense Electric What happened? How the operation of the situation? Facing the current performance problems, what will happen? "Investor" reporter recently called the company responsible person, and received some simple answers.
Panel prices lead to decline in performance
Hisense Electric is a company engaged in the research, development, manufacture and sale of television sets, digital television broadcasting and television equipment, refrigerators and information network terminal products. It is the largest controlled subsidiary of Hisense Group and the earliest company to enter the flat-panel TV industry One of the color TV companies.
According to Hisense Electric's three quarterly reports, the company's operating income of 23.746 billion yuan, an increase of 7.57%; but attributable to shareholders of listed companies net profit of only 600 million yuan, a substantial decline of 47%.
Hisense Electric started this time from what situation? In 2016, the company performance is still growing in the same year revenue of 31.8 billion yuan, an increase of 5.44%; net profit of 1.759 billion yuan, an increase of 18.14%.
Hisilicon net profit plunged from the beginning of 2017. Net profit attributable to shareholders of listed companies in the first quarter of 269 million yuan, a year-on-year decrease of 49%, also maintained in the third quarter.Moreover, the performance decline Affected, 2017 'May Day' after the first trading day, has been the White Horse shares Hisense Electric suffered a rare limit.
Why Hisense Electric suffered net profit Waterloo? Company responsible person told Investor News: 'According to the financial statements prevail .Company net profit fell mainly due to material costs, especially panel prices.In response to the decline in net profit, The company will make some adjustments in the future, but the specific adjustment methods, such as whether or not to increase the price depends on the material price fluctuations in the future.
So, the panel price is how to affect the TV business? According to industry sources said: '2016 so far, the average panel price rose about 40%, but sold to consumers in the hands of the color TV prices rose only about 12% 13%, that is to say, the whole machine manufacturer did not rise as much as panel makers, the direct result of the machine manufacturers profit margins decline.
According to the China Video Industry Association survey, in June this year, the average selling price of the 55-inch TV and UHD panels increased by 19% over the same period last year while the average price of the complete machine dropped by 1%; the sales volume ranked the second place 32% Inch TV, HD panel average price increase of 26%, while the average price of the machine only increased by 13% .This situation for the meager profit color TV industry, it is indeed more difficult to digest the rising costs of the panel, business pressure.
However, according to insiders, 'the panel is indeed the most expensive part of the TV product, accounting for nearly 70% of the total cost, but panel prices have shown signs of obvious signs from the beginning of 2016. TV manufacturers generally respond to rising costs through price adjustment . So why Hisense 2016 performance has not been much affected, or even increased, to 2017 big face it?
So, Hisense Electric will be dragged down by the price of raw materials, whether there is a breakthrough point?
For the current TV listed companies, seemingly only their own production panel, it will not be affected.With TCL Group (4.980, -0.03, -0.60%), the first quarter of 2017 attributable to shareholders of listed companies net profit of 448 million yuan, an increase of 71% over the same period, the first half net profit of 1.034 billion yuan, a substantial increase of 70%, while to do this is also largely attributable to the subsidiary Huaxing photoelectric.It is understood that Huaxing photoelectric mainly engaged in the display panel R & D, production and sales business, the net assets of the Group accounted for a high proportion of net assets.
Semi-annual report said that in the first half of 2017 LCD panel industry boom, Huaxing photoelectric sales revenue of 13.54 billion yuan, an increase of 49.2%, profit 5.48 billion yuan, an increase of 149%.
So does this mean that only in the development of raw materials such as panels production line in order to maintain the advantage in this industry background?
There are also investors worried: 'The company for the third consecutive quarter net profit dragged down by the same factor, whether it also shows the company's anti-risk ability and ability to respond to slightly less.'
Color TV industry is facing restructuring
So for the difficult Hisense appliances, what better direction?
The past 10 years, China's color TV production has been steady growth, but this year, color TV industry growth continued to decline.China Video Industry Association data show that the first half of this year, TV retail volume of 21.81 million units, down 7.3% According to the statistics of the customs authorities, from January to May this year, the export volume of China's color TV sets was 26.62 million units, down 6.1% from the same period of last year.
Faced with this grim situation, the color TV enterprises will go from here? Meager profits, the blind pursuit of volume growth can bring great performance to the company? Experience from the successful point of view, to strengthen the category structure adjustment, by improving quality and improve Additional services may be an important way to maintain profitability.
Industry experts said: 'High-quality, high-profile and high-value products will be endorsed by consumers. In the context of the escalation of consumption, consumers will not change their pursuit of high quality even as consumption shrinks.' ' According to statistics, in the first half of the year, the market penetration rates of large-screen TVs, smart TVs, 4K ultra high definition TVs, HDR TVs, quantum dot TVs and OLED TVs over 55 inches in China reached 40% and 85% respectively %, 57%, 29%, 1.7% and 0.2%, and continue to grow, these products will become the main source of corporate profits.
In addition, for the TV industry, how to better meet the rapidly changing consumer demand for new consumption is one of the future growth points.According to the China Video Industry Association statistics, 555 million of the domestic color TV sets, 380 million Taiwan can not access the Internet, even in the 170 million have been connected to the Internet TV, there are a lot of control experience is not satisfactory, the lack of content programs and other issues.
Industry experts said: 'This is the stage in the process of technological change problems.For audio-visual entertainment, the big screen TV has a natural advantage.With artificial intelligence and other technologies continue to mature and promote the use of television, large screen, Ultra-high definition, home-sharing, and health-friendly TVs will replace handsets as the most important Internet audiovisual terminal, returning to the living room in the next five years to be the largest dividend in the color TV industry. '
In addition, after nearly 10 years of baptism, people slowly accept the payment method of content.Payment of Internet TV subscriptions will be profitable in the next 3 ~ 5 years.In order to meet the blue ocean of information consumption, manufacturers should step up the layout of the 'hardware + content' Business model The next step in the role of home television will be enhanced to a greater extent, because it is the only one big screen at home, it is also the home should act as the only AI Center (smart center) device.