Low-end overcapacity in the color TV industry strove to upgrade the industry

On the evening of November 21st, TV company Skyworth Digital released its semi-annual report, which was hampered by the weakness of the domestic color TV market and increased competition. Skyworth Digital made a loss of HK$189 million for the first time in the first fiscal year of 2017. According to the financial report, for the six months ended September 30, 2017, Skyworth Digital’s turnover was HK$21.489 billion, which was 5.9% higher than the same period of last year. The overall gross profit rate was 15.8%, down 4.8 percentage points from the same period of last year. During the reporting period, Skyworth’s color TV revenue was HK$8.764 billion, which was 6.5% lower than the same period last year. Although “thinned dead camels are better than Ma Da”, when the market environment encounters “the Great Depression”, it is difficult for industry giants to retreat.

Since 2017, the color TV market has experienced cold winters, and the overall decline in market sales has been seen in newspapers, especially in the first three quarters when the market remained in a downturn and continued to suffer from cold. According to AVC's first three quarters of 2017, China's color TV market analysis report, in 2017 China ushered in the history of the most severe real estate regulation, the country's restricted sales of cities has been expanded to 50, the traditional home appliance market is in the doldrums, China's color TV market also welcomed The third worst season in history. Ove Cloud Online monitoring data show that in the third quarter, the retail volume of the color TV market was 10.41 million units, down 12.9% year-on-year; the sales area was 6.89 million square meters, down 7.3% year-on-year.

Forward-looking industry research institute analyzed that in 2017, the color TV market showed a high level of consolidation, and TV sales declined. This was mainly due to the combination of consumer overdrafts, real estate control, the decline of Internet dividends, and lack of support for major sports events. The panel with the highest ratio of raw materials for televisions has seen prices soaring since last year, and it has directly pressured the color TV industry “too breathless”.

Recently, Liu Weizhi, chief executive of Skyworth Group, said in an interview with the media that the price increase of the upstream screen body engulfed the profit of the brand TV and the fierce market competition brought about by the saturation of the domestic market. It is the two major main reasons for the unsatisfactory overall performance of the color TV industry in the first three quarters of this year. Constraints. In addition, a number of new Internet TV brands entering the market relying on the convenience of financing from the capital market, using hardware free, low-cost strategies and other tactics to frequently carry out "price war", so that the overall performance of TV companies damaged.

In fact, the first three quarters of this year, in addition to the acquisition of China Star Optoelectronics TCL "land force", the days of color TV companies are not too good. Reporters found that the company’s financial report found that Sichuan Changhong’s net profit for the first three quarters of this year was only 167 million yuan, a year-on-year drop of 67.97%. The TV companies with financial figures “heavy” are not only Skyworth and Changhong. On October 25th, the financial report released by Hisense Electric (600060.SH) showed that the company’s net profit in the first three quarters was RMB 600 million, a year-on-year decline of 47.39%.

Fortunately, after the first three quarters of continuous recession, the color TV market entered the fourth quarter, and various favorable factors gradually began to appear. In the “Double 11” shopping carnival that just passed, the color TV industry ushered in the eruption after a long period of time due to its advantages in weather, geographical location, people, and various aspects. Daily monitoring data from AVC Online shows that the sales volume of color TVs reached 6.4 billion yuan on the same day, a year-on-year increase of 33%; sales volume reached 2.057 million units, bringing in a 21.7% increase in sales volume. , Let the sluggish TV market look forward to warming after the continuous "winter".

As we all know, the panel is the highest cost component in TV products, accounting for nearly 70% of the total cost. It can be said that the rise and fall in the price of the panel largely determines the rise and fall of the color TV market. Those who are concerned about the market dynamics of the color TV industry all know that since the third quarter of last year, color TV panel prices have experienced a period of long-term price increases, and panel prices have only gradually started to decline in the third quarter of this year. Yesterday, China Electronics News, the latest panel quotes showed that in late November, large-size TV panel quoted performance was lower than expected, 50-inch, 55-inch panel prices continued to fall 2.5% and 1.1%, which led to the financial difficulties of the color TV machine The company saw the dawn.

Looking into the second half of fiscal year and next year, Liu Yizhi optimistically estimates that in the fourth quarter, large-size panel prices will decline, and the price of LCD TV panels will decline, which will help TV companies to make profits. The entire color TV industry will enter a more healthy and healthy track, and the situation in 2018 will be greatly eased and improved.

In fact, the current industry generally believes that the next "double 12" and the promotion before the New Year's Day will be expected to stimulate the reversal of the color TV sales in the fourth quarter and achieve positive growth. Ovid Cloud Network predicts that TV sales in the fourth quarter will reach 15.57 million units, up 0.9% year-on-year; sales will reach 50.7 billion yuan, up 1.9% year-on-year.

Ovid cloud network analysis said that the reasons for optimistic about the performance of the fourth quarter color TV market are: First, the panel price is currently in a downward channel, the overall cost pressures have been effectively alleviated, providing an effective weapon for corporate promotions; Second, 32-inch color TV products in the " The excellent performance in the double 11" big promotion will allow companies to see the opportunity. There will be more enterprises in the "Double 12" competition for the 32-inch color TV products. The low price of the small size will remain strong for the market. Therefore, Ove Cloud Network believes that this year, "Double 12" will be expected to achieve a good ending for the 2017 color TV market, and set a Flag for 2018.

However, home appliance industry observer Liu Buchen believes that although "Double 12", New Year's Day and other promotional activities will certainly play a positive role in the fourth quarter of the color TV market, but these are only staged market stimulus, the overall market situation is still difficult to change.

At the end of the year, whether the color TV market can win the “turnover” in the fourth quarter still needs to wait for market performance. However, although this year's color TV industry as a whole is “a bleak recession,” the industry is facing a difficult situation is not “every harm but no benefit,” the so-called “relief of blessings and blessings, put to death, future generations, the market downturn will force TV companies to abandon” The price war "concept war" really turns to "value war." In recent years, industry data has shown that with the escalation of consumer demand, China's color TV industry has experienced excess capacity in low-end products, and market pain points where mid- to high-end consumer demand cannot be fully satisfied. The iron and steel industry also needs its own hard, color TV industry must also work hard to achieve industrial upgrading.

In addition, it is worth noting that according to IHS, an international market research organization, the production of 8.5 generation and 10.5 dailies next year will gradually increase the supply of 65-inch and 75-inch TV panels in the first half of next year, increase the supply, and lower prices. Under this, it will help stimulate consumers to purchase large-size TVs. The deep excavation of TV large-screen gold mines will become one of the competing points for color TV manufacturers.

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