Text / special commentator Xiao Yuan
Sanan Optoelectronics (600703.SZ), Hefei Blu-ray and Nantong Tongfang, which are rushing into the domestic LED TV backlight supply chain, should be careful, because the global LED chip giant Taiwan Jingyuan Optoelectronics (2448.TW, hereinafter “Crystal Power†is consolidating mainland color TV manufacturers with a model of joint ventures established on the mainland.
“The basic strategy for Jingdian to enter the mainland market is to find a partner that can release production capacity and include it as a shareholder of the joint venture company to form a win-win interest alliance.†At 10:00 pm on December 16, 2010, Jingdian Director Li Bingjie once again rushed from Taiwan to Shenzhen to attend the High-tech LED Engineers Conference. One of the goals was to find more LED professionals and cooperate with the crystal expansion of the mainland.
On April 8th, Jingdian and Lite-On, a mainland power plant, invested $600 million in Jingzhou Optoelectronics in Changzhou. On October 8, Jingdian reached an agreement with Yiguanjing and Great Wall Development (000021.SZ) to jointly invest 160 million US dollars in Xiamen to form a joint venture company.
Harvest LED backlight
"Next, there will be a joint venture company, which is currently under discussion. Jingdian plans to invest 30 billion Taiwan dollars (about 6.7 billion yuan) in the mainland in the past five years, and the first phase of the first three years to invest 15 billion Taiwan dollars." Li Bingjie revealed that one of the shareholders of Jingpin Optoelectronics is a mainland color TV manufacturer. Since the cooperation needs to be approved by relevant government departments in the mainland, it is estimated that all the processes will be completed in the near future. The establishment of a joint venture with Great Wall Development is also aimed at TPV Technology (00903.HK), a subsidiary of Great Wall Development's parent company China Electronic Information Industry Group (CEC). "TPV is the world's largest LCD TV foundry." Bingjie is negotiating the third mainland investment project, one of which is also a color TV manufacturer in mainland China.
Li Bingjie said that the current investment in the LED industry in the mainland is frenzied, and there are many bubbles in the middle, because the LED production capacity that can be digested by the current lighting is very small, mainly LED TV. However, this year's global LED TV sales volume is only about 80 million units, of which the required LED chip capacity can only be met by 300-350 MOCVD equipment (LED chip production equipment). The world has put into operation more than 400 MOCVDs this year, and will increase more than 500 units next year. "So, in the investment projects of Jingdian in the mainland, it is necessary to find downstream customers before starting the expansion plan."
In fact, the reason why Jingdian invested so much in the mainland market in 2010 was mainly due to the “bumper harvest†of LED TV customers and the huge growth potential of China's LED TV market in the next year or two. Since the beginning of 2010, the penetration rate of LED TV in the mainland China market has increased month by month. Now the penetration rate of LED TV in the primary and secondary markets in mainland China has exceeded 50%.
Yang Dongwen, president of the color TV business of Skyworth Digital (00751.HK), also revealed to the journal at the end of October that according to the current decline in the price of LED screens, the time point for LED TVs to completely replace CCFL LCD TVs will appear next year. .
“In the urban market, the phenomenon of LED TV replacing CCFL LCD TV has become very obvious. If the share of LED TV in the rural market rises to the critical point of 50%, the CCFL industry chain will collapse rapidly, and LED TV will completely replace CCFL LCD TV. Yang Dongwen said.
In this LED TV market transformation, as a supplier of Samsung TV LED chips, Jingdian also naturally drank “head brothâ€. In the fourth quarter of 2009, Jingdian's revenue was 3.852 billion NT dollars, a record high in a single quarter, and its gross profit margin was as high as 33%, a quarter-on-quarter increase of 6 percentage points.
And this rapid growth momentum continues in 2010. At the beginning of November 2010, Jingdian announced its third-quarter earnings report. In the first three quarters of 2010, Jingdian's revenue was NT$15.903 billion, up 78% year-on-year, and net profit was NT$4.621 billion, up by 438% year-on-year. Interest rates rose to 39.5%, an increase of 18.4 percentage points from 21.1% in the same period in 2009.
Jingdian official said that the third quarter of 2010 continued to grow, mainly due to the growth of LCD TV backlight shipments. Li Bingjie revealed that this year's crystal TV revenue is expected to be NT$19.5 billion, of which more than 4 billion are from the mainland market and 30% are from LED TV backlights. In terms of revenue scale, Jingdian, together with its shareholder LED packaging giant Everlight (2393.TW), is the sum of revenues of other Taiwanese LED companies.
"The timing of mainland LED chip companies entering the TV backlight supply chain is a bit late," said Zhang Xiaofei, CEO of Gaogong LED. Gong Weibin, general manager of Ruifeng Optoelectronics, also admitted that Taiwan's LED giants will bind large-scale customers of mainland color TVs in a joint venture mode, so that mainland domestic LED upstream manufacturers can only become the second or third supplier of mainland color TV manufacturers, and directly affect mainland LED chips. The performance of the manufacturer's product gross margin.
Sanan Optoelectronics (600703.SZ), Hefei Blu-ray and Nantong Tongfang, which are rushing into the domestic LED TV backlight supply chain, should be careful, because the global LED chip giant Taiwan Jingyuan Optoelectronics (2448.TW, hereinafter “Crystal Power†is consolidating mainland color TV manufacturers with a model of joint ventures established on the mainland.
“The basic strategy for Jingdian to enter the mainland market is to find a partner that can release production capacity and include it as a shareholder of the joint venture company to form a win-win interest alliance.†At 10:00 pm on December 16, 2010, Jingdian Director Li Bingjie once again rushed from Taiwan to Shenzhen to attend the High-tech LED Engineers Conference. One of the goals was to find more LED professionals and cooperate with the crystal expansion of the mainland.
On April 8th, Jingdian and Lite-On, a mainland power plant, invested $600 million in Jingzhou Optoelectronics in Changzhou. On October 8, Jingdian reached an agreement with Yiguanjing and Great Wall Development (000021.SZ) to jointly invest 160 million US dollars in Xiamen to form a joint venture company.
Harvest LED backlight
"Next, there will be a joint venture company, which is currently under discussion. Jingdian plans to invest 30 billion Taiwan dollars (about 6.7 billion yuan) in the mainland in the past five years, and the first phase of the first three years to invest 15 billion Taiwan dollars." Li Bingjie revealed that one of the shareholders of Jingpin Optoelectronics is a mainland color TV manufacturer. Since the cooperation needs to be approved by relevant government departments in the mainland, it is estimated that all the processes will be completed in the near future. The establishment of a joint venture with Great Wall Development is also aimed at TPV Technology (00903.HK), a subsidiary of Great Wall Development's parent company China Electronic Information Industry Group (CEC). "TPV is the world's largest LCD TV foundry." Bingjie is negotiating the third mainland investment project, one of which is also a color TV manufacturer in mainland China.
Li Bingjie said that the current investment in the LED industry in the mainland is frenzied, and there are many bubbles in the middle, because the LED production capacity that can be digested by the current lighting is very small, mainly LED TV. However, this year's global LED TV sales volume is only about 80 million units, of which the required LED chip capacity can only be met by 300-350 MOCVD equipment (LED chip production equipment). The world has put into operation more than 400 MOCVDs this year, and will increase more than 500 units next year. "So, in the investment projects of Jingdian in the mainland, it is necessary to find downstream customers before starting the expansion plan."
In fact, the reason why Jingdian invested so much in the mainland market in 2010 was mainly due to the “bumper harvest†of LED TV customers and the huge growth potential of China's LED TV market in the next year or two. Since the beginning of 2010, the penetration rate of LED TV in the mainland China market has increased month by month. Now the penetration rate of LED TV in the primary and secondary markets in mainland China has exceeded 50%.
Yang Dongwen, president of the color TV business of Skyworth Digital (00751.HK), also revealed to the journal at the end of October that according to the current decline in the price of LED screens, the time point for LED TVs to completely replace CCFL LCD TVs will appear next year. .
“In the urban market, the phenomenon of LED TV replacing CCFL LCD TV has become very obvious. If the share of LED TV in the rural market rises to the critical point of 50%, the CCFL industry chain will collapse rapidly, and LED TV will completely replace CCFL LCD TV. Yang Dongwen said.
In this LED TV market transformation, as a supplier of Samsung TV LED chips, Jingdian also naturally drank “head brothâ€. In the fourth quarter of 2009, Jingdian's revenue was 3.852 billion NT dollars, a record high in a single quarter, and its gross profit margin was as high as 33%, a quarter-on-quarter increase of 6 percentage points.
And this rapid growth momentum continues in 2010. At the beginning of November 2010, Jingdian announced its third-quarter earnings report. In the first three quarters of 2010, Jingdian's revenue was NT$15.903 billion, up 78% year-on-year, and net profit was NT$4.621 billion, up by 438% year-on-year. Interest rates rose to 39.5%, an increase of 18.4 percentage points from 21.1% in the same period in 2009.
Jingdian official said that the third quarter of 2010 continued to grow, mainly due to the growth of LCD TV backlight shipments. Li Bingjie revealed that this year's crystal TV revenue is expected to be NT$19.5 billion, of which more than 4 billion are from the mainland market and 30% are from LED TV backlights. In terms of revenue scale, Jingdian, together with its shareholder LED packaging giant Everlight (2393.TW), is the sum of revenues of other Taiwanese LED companies.
"The timing of mainland LED chip companies entering the TV backlight supply chain is a bit late," said Zhang Xiaofei, CEO of Gaogong LED. Gong Weibin, general manager of Ruifeng Optoelectronics, also admitted that Taiwan's LED giants will bind large-scale customers of mainland color TVs in a joint venture mode, so that mainland domestic LED upstream manufacturers can only become the second or third supplier of mainland color TV manufacturers, and directly affect mainland LED chips. The performance of the manufacturer's product gross margin.
SHENZHEN YINZHIGUAN DIGITAL TECHNOLOGY CO.,LTD , http://www.yzgmusiccrown.com