BOE net profit plummeted nearly 60%, the panel market started price war

category:Internet
 BOE net profit plummeted nearly 60%, the panel market started price war


[Beijing Orient will face more challenges this year. The market share of the company is increasing, expanding the layout and maintaining the strength of R & D intensity. How to further refine the management, optimize the supply chain and reduce the cost end will be one of the most important challenges. The future supply side clearing and demand recovery are the biggest influencing factors for the industry to usher in a cyclical warming, and the industry pattern is expected to reshape again. What kind of company does Liu Shuwei continue to be A (000725.SZ)? Liu Shuwei, an independent director and scholar named 000002.SZ, who has questioned 300104.SZ and other companies, continues to publish the article. The latest article in April 24th is to create new rigid demand with new supply, explaining the rapid growth of the performance of the company in 2017 and looking forward to the good of the company. Prospects, and an article in April 18th discussed that although Beijing East may be a list of sanctions for trade war, its impact is limited. However, the first quarter results announced in the 23 night of the company were not ideal, and the net profit of the shareholders of the listed companies to deduct non recurrent gains and losses was even nearly 60%. In the interview with many people in the industry, the panel price war is an unavoidable haze of the industry, and there are no signs of a stable panel price. It is a great trouble for Beijing and its competitors, and the Beijing East is still dependent on a large number of government posts; it is ideal for Beijing. Many products are already the first in the industry. After the price war, it remains to be seen whether leftover is king. Net deducted net profit fell nearly 60% In April 18th, Liu Shuwei said in the article: in April 20th, Beijing East will announce the 2017 annual report, which will not only make investors happy in 2017, but will not let investors disappoint in 2018. In April 23rd, the annual report published by the Beijing Oriental showed that in 2017, the operating revenue of the eastern Beijing was 93 billion 800 million yuan, up about 36.15% year on year, and the net profit was 7 billion 568 million yuan, with a year-on-year increase of about 301.99%, and the best achievement in history was created. However, in the first quarter of 2018, Beijing realized 21 billion 566 million yuan in the first quarter of 2018, with net profit of 2 billion 18 million yuan, respectively, 1.32% and 16.34%, respectively, and the net profit of the shareholders of listed companies was even 58% to 966 million yuan, deducting non recurrent profit and loss. This has clearly disappointing investors. In the first quarter of the year, why profit fell so sharply? In the first quarter of BOE report did not specify. Liu Shuwei, who continued to keep up with BOE, said in April 24th: BOEs net profit decline in the first quarter of 2018 was mainly due to a cyclical decline in the price of the panel. In the first financial reporter interviewed a number of market participants, the price war and cost increases, significantly led to BOEs poor performance in the first quarter. A fund manager, which has sold A in Shenzhen in November 2017, told the first financial reporter that the panel industry still has a strong periodicity. In the process of taking up market share in Beijing, Huaxing optoelectronic and other Chinese enterprises, the price war must not be avoided, and the capacity of these enterprises is expanding continuously. The situation of oversupply will be difficult to change in the future. Xu Xingjun, an analyst at Guang Fa securities, believes that, for a long time, the LCD panel market is dominated by South Korea, the Taiwan region of China and Japanese manufacturers, and the LCD panel manufacturers in mainland China are weak in discourse. From 2010, with the gradual rise of domestic terminal brands, Chinese mainland manufacturers began to speed up, the global liquid crystal panel capacity continued to shift from Japan, South Korea and Taiwan to the mainland of China, and the capacity of Chinese mainland manufacturers continued to rise. Xu Xingjun believes that BOE actually has the risk of a sharp fall in product prices. From the panel price trend, 43 -, 49 - and 55 - inches in the first quarter of 2018 fell 32.37%, 24.72% and 18.60% to 102, 136 and 175, below the average panel price in 2016, said Zhou Haichen, an analyst with shin yuan. And WitsView sagacious show the panel price bulletin in late April, released in April 20th, shows that the average price of 43 inches and 55 inches is $93 and $169 per slice, respectively. The price of the panel has accelerated further down compared with the first quarter, which made people worried about the performance of BOE in the first half of the year. The fund managers say so. Government subsidies are dependent on lingering Despite the fall in product prices, the market share of many products in the East has reached market lead, but it all depends on the huge financing and government subsidies over the past years. According to the Beijing Oriental annual report, according to IHSMarkit (global information consulting company, full name for InformationHandlingServices, Inc.&MarkitLtd.) data, in 2017, the Beijing Orient display panel shipped nearly 400 million pieces, ranking first in the world. Among them, the LCD display and the tablet display of the display and sensor services continue to be the first in the world. The account of the laptop display market has risen to the worlds first, the TV display screen rose to second of the world, and the display screen is second. Intelligent system business intelligent manufacturing services shipped 15 million over the entire volume, TV and display market share ranked fourth. According to data provided by IHS, the top five top panel suppliers in the world are Beijing East (22.3%), South Koreas LG (21.6%), Taiwan friendly optoelectronic (AUO, 16.4%), and Taiwan group in China (Innolux, 15.7%), and South Koreas Samsung panel (9.9%). We will work with partners to promote user experience and comprehensive upgrading of information interaction ports. We will continue to improve the market share of the five traditional application segments: deep plowing TV, display, notebook PC, tablet PC and mobile phone. In the annual report, Beijing Orient said. But how to improve market share in the end? In the past many years, BOE has been short of funds. On the one hand, it relies heavily on financing. On the other hand, it relies heavily on government subsidies. From 1997 to 2016, BOE has a total cash dividend of 1 billion 968 million yuan, of which cash dividends in 2016 totaled 1 billion 47 million yuan. In 2017, the total amount of cash dividends was 1 billion 740 million yuan. Liu Shuwei said in an article published in April 24th, that is, the total amount of red shares listed for years is about 3 billion 700 million yuan. However, since the listing of BOE, the cumulative increase has been 6 times, and the total net actual fund-raising has exceeded 70 billion 600 million yuan. It can be seen that BOEs annual dividend is slightly more than 5% of the amount of financing for many years. In the 2014 private placement, BOE actually raised nearly 45 billion yuan of funds and raised nearly 9 billion yuan in 2010. In terms of government subsidies, the annual report in 2016 showed that the government subsidy reached 1 billion 915 million yuan, which was mainly included in the business income; in 2017, the government subsidies had declined, only 109 million yuan. However, the government subsidies in 2018 have come back again. In the first quarter financial report, Beijing said, deferred income increased by 264% at the beginning of the period, mainly in the reporting period to obtain debt exemption, which is an asset related government subsidy, confirmed as deferred income. The deferred income from non current liabilities increased from 2 billion 260 million yuan at the end of 2017 to 8 billion 240 million yuan. How is this more than 6 billion yuan in the end? In January 17, 2018, Beijing Oriental announced that 6 billion 300 million yuan of debt can be exempt, the creditor for Fuzhou city investment Beijing East Investment Co., Ltd., is the Fuzhou Municipal Peoples government designated investment platform, prior to the interest free bank entrusted loans to the eastern capital of Beijing to provide funds for project construction. This shows that this exemption of debt is almost equivalent to the net profit of BOE in 2017, and it is far more than the cash dividend of 3 billion 700 million yuan since the listing. Ouyang Shihua, an analyst at Guoxin Securities, said that Beijing will face more challenges this year. The market share of the company is increasing, expanding the layout and maintaining the strength of the R & D intensity. It will be one of the important challenges to further refine the management, optimize the supply chain and reduce the cost end. The future supply side clearing and demand recovery are the biggest influencing factors for the industry to usher in a cyclical warming, and the industry pattern is expected to reshape again. The Shenzhen fund manager believes that the price war is expected to last for a minimum of one or two years. To continue to seize more market share of competitors, Beijing Orient, Huaxing optoelectronics and other Chinese panel producers can gradually have the right to price the products, but this process is not simple. In the display industry, with the release of new semiconductor display new capacity, industry competition will be more intense, but the market demand is expected to grow strongly, driven by large size TV, mobile phone comprehensive screen, rapid development of new application market and high expectation of global economic recovery. It is said by Beijing. Liu Shuwei said: in March 22, 2018, the White House presidents office issued a survey of Chinas policy and behavior on technology transfer, intellectual property rights and innovation ( clause 301 ) referred to the Orient. However, in the April 23rd announcement, the company said, as of the announcement of this announcement, the company did not learn and received no official information on the sanctions against the United States. Source: first financial responsibility editor: Bai Xin _NT4464 The Shenzhen fund manager believes that the price war is expected to last for a minimum of one or two years. To continue to seize more market share of competitors, Beijing Orient, Huaxing optoelectronics and other Chinese panel producers can gradually have the right to price the products, but this process is not simple. In the display industry, with the release of new semiconductor display new capacity, industry competition will be more intense, but the market demand is expected to grow strongly, driven by large size TV, mobile phone comprehensive screen, rapid development of new application market and high expectation of global economic recovery. It is said by Beijing. Liu Shuwei said: in March 22, 2018, the White House presidents office issued a survey of Chinas policy and behavior on technology transfer, intellectual property rights and innovation ( clause 301 ) referred to the Orient. However, in the April 23rd announcement, the company said, as of the announcement of this announcement, the company did not learn and received no official information on the sanctions against the United States.