Industrial layout to the depth of the joint construction of the optoelectronics channel

[Source: "High-tech LED - Research and Review" April issue / reporter Tang Guirong] "The market is more deserted than before." Lian Jianguang (300269.SZ) deputy general manager Xiang Jianyong still suffered a loss in the first quarter of last year. The memory is still fresh. Due to the lack of large-scale events and commercial activities, the LED display market performance in the first half of last year was relatively stable.

However, throughout 2011, Lianjian Optoelectronics handed over a satisfactory performance answer.

The data shows that Lianjian Optoelectronics achieved operating income of 512 million yuan in 2011, operating profit of 58.328 million yuan, total profit of 60.389 million yuan, an increase of 46.36% over the same period of last year; net profit attributable to common shareholders of listed companies was 52.102 million yuan. , an increase of 26.94% over the same period last year.

But for most small and medium-sized LED display companies in China, the days are not good.

According to the research data of the High-tech LED Industry Research Institute (GLII), the output value of China's LED display in 2011 reached 21.9 billion yuan, an increase of 18% over the previous year. The LED display industry showed a trend of increasing prices. In 2011, China's LED display shipments increased by 47.5% year-on-year, but the price dropped by 20%.

At the same time, although the domestic LED display industry is relatively mature, the market structure has not yet fully formed.

According to the statistics of the High-tech LED Industry Research Institute (GLII), there were more than 40 LED display companies with an annual output value of over 100 million yuan in 2011. Among them, the three LED display listed companies (Lianjian Optoelectronics, Chau Ming Technology, Liard) in 2011 annual revenues exceeded 500 million yuan for the first time, but the contribution rate of a single company to the domestic LED display output value is less than 3%.

"In the past two years, LED display orders have become more and more inclined to large enterprises, and they are gradually forming a market agglomeration effect." Xiang Jianyong inadvertently showed a hint of joy. He said that this year for Lianjian Optoelectronics, not only to do a fine job, but also face the transformation of the channel.

Increase investment in direct sales mode
The domestic LED display industry has always faced a multiple choice question: controlling the market or controlling gross profit margin. “Market and gross margin are a contradiction.” Xiang Jianyong said that for companies that want to increase their market share, it means sacrificing some of the gross profit.

At present, there are two development strategies in the LED display industry: it is necessary for the enterprises in the market to take the channel, and the enterprises with the profit should take the direct sales. For companies that want to increase their market share, they often choose to expand their production routes; those who want to increase their gross profit will continue to innovate.

Take the current four LED display listed companies as an example. Among them, Alto Electronics is positioned in the financial professional market segment with a net profit margin of 16%, which is the highest among the four companies. Liard is mainly direct sales, and the net profit margin is second only to Alto Electronics. While Zhouming Technology is based on channels, its net profit margin is relatively low.

According to the joint construction, the company's 10% net profit margin is mainly due to the expansion of production capacity and brand building.

Xiang Jianyong said that in the past, Lianjian Optoelectronics LED display mainly adopted channel sales mode. If you want to quickly increase your net profit margin, the first thing you need to do is channel transformation. He said that in 2012, based on the consolidation of the channel sales model in the domestic market, the company will gradually increase its investment in the direct sales model.

For this change, Xiang Jianyong believes that this is not only a gesture of doing a good job, but also involves the company's annual goals, new technology research and development, marketing strategies and other aspects.

2011 LED display company revenue situation


In fact, the underlying reason for supporting the joint-built photovoltaics to take the direct sales route is that the market structure of the LED display industry has not been formed. According to estimates by Jian Yong, although the domestic LED display output has a growth rate of 20%-30% per year, the scale only accounts for 5% of the global market share.

Therefore, even if the current Led Lighting has a growth rate of 50%-60%, Lianjian Optoelectronics has not shown much surprise. When many LED display companies have extended their fields to led lighting, Lianjian Optoelectronics is very calm.

Xiang Jianyong said that LED display has a large market space in the future, especially LED full-color display, which will maintain a growth rate of 30% in the future, and there is still much room for improvement in technology. In the income structure of the display segmentation products, the sales revenue of Lianjian Optoelectronics LED full-color display has reached 98%.

And this is more determined that Lianjian Optoelectronics is doing market positioning in the field of LED display.

In the past, Lianguang Optoelectronics appeared to be unusually low-key in the industry. “Every company needs to open up new markets to support development.” Xiang Jianyong said that this year, Lianjian Optoelectronics will focus on expanding overseas LED display emerging markets.

In the office building of Lianguang Optoelectronics Headquarters, a red flag is attached, and it is said that "our goal is to be the top 2 in the industry within 3 years."

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