Hisense Electric paid a copy of the "unexpected" performance of the interim report.
On the evening of August 30, Hisense Electric released the 2018 mid-year report. In the first half of the year, Hisense Electric achieved operating income of 14 billion yuan, an increase of 3.28% year-on-year. The net profit attributable to shareholders of listed companies was 347 million yuan, down 12.34% year-on-year.
For this achievement, the capital market did not buy it. On August 31, the closing price of Hisense Electric fell 7.4% to 9.95 yuan, with a total market value of about 13 billion yuan.
According to the financial report, during the reporting period, the color TV industry still faced weak demand and overall oversupply. According to the statistics of Zhongyikang, although the Russian World Cup and LCD panel price reduction factors drove a slight increase in retail sales, the overall retail sales of the domestic color TV industry remained It fell by 5.92%, putting tremendous pressure on the operation of the company.
According to Zhong Yikang statistics, in the first half of this year, Hisense’s retail sales in the domestic color TV market accounted for 17.2%, ranking first in the market. In June 2018, there were 35.11 million smart TV users.
However, in the context of the overall downward adjustment of panel prices and the marketing of the World Cup this year, although Hisense’s revenue has increased, the profit performance has made people’s “big eyeglasses.” In this regard, the home appliance industry observer Liu Buchen analyzed in an interview with the Times. It is said that the domestic TV market continued to slump in the first half of this year, and there was no expected growth, which directly affected the revenue growth of Hisense TV. The panel prices began to rise in May, and the cost of raw materials gradually increased. Together with this year’s Hisense marketing promotion, The launch is too radical, directly affecting the profitability.
As a secondary sponsor of the 2018 World Cup, Hisense spent nearly 100 million US dollars, coupled with various marketing activities, Hisense's expenses in this World Cup can be said to approach Hisense's 2017 net profit of 942 million yuan. .
CICC expects that the color TV market will still have poor demand and fierce competition in the second half of the year. In the context of the acquisition of Toshiba color TV business and World Cup marketing in the first half of the year, it is expected that Hisense will actively expand overseas markets and improve the profitability of color TV business.
'The impact of the World Cup marketing will be reflected in the third quarterly report, and the semi-annual report is not obvious. ' However, Liu Buchen further stated that it should not be too optimistic about Hisense's World Cup marketing to significantly increase sales in overseas markets. Overseas market development is a long-term process. Mainly by products and channels, the impact of a World Cup marketing on the market is limited, temporary.
On August 18, Hisense Electric announced the completion of the acquisition of Toshiba's color TV business and obtained the 40-year global brand authorization of Toshiba TV. However, the industry has been suspicious of the value of Hisense's acquisition of Toshiba. Some analysts believe that Hisense's acquisition of Toshiba TV mainly means Its brand effect is conducive to entering overseas markets.
The color TV industry is facing a consumption upgrade. Intelligent high-quality products will be the next strong growth point in the color TV industry. Data from Aowei Yunkang show that the penetration rate of domestic smart TVs in June has reached 94%, and at the same time, Dimensions, UHD, curved surfaces, ultra-thin and other sub-products have market penetration rates of 50%, 67%, 6% and 11.7%, respectively, and continue to grow. These high-end products have the opportunity to bring objective profitability to the enterprise. Since last year, Hisense has concentrated on the high-end, large-screen and large-screen TV market through ULED super-picture quality and 4K laser TV, but its sales report did not disclose the sales of the above products.
In order for the capital market to restore confidence to Hisense, it may have to wait until the day when its profitability has improved significantly.