The first half of 2013 screen business performance generally improved, alto electronics most profitable

LED display industry in 2012 after the baptism of closures, junduoli, hoppt, big vision has been out, coupled with the recent Shenzhen billion light and ten party photoelectric collapse, remind the industry industry reshuffle did not end. But a thousand sails pass by the side, the million tree head of the spring, the collapse of the dense occurred at the same time, the display of listed company business is in 2013 has been significantly improved. This means that the industry concentration is increasing, orders are being transferred to the competitive advantage of firms, on the other hand also confirms the success of IPO can be listed enterprise constitution are improved obviously, deal with all kinds of risks which can be better.

Listed display corporate revenue situation is stable, the first half YOY growth of 14.4%

In August 15th, the photoelectric semi annual report released in 2013, so far, 4 display industry report of listed companies to disclose all. The overall look over the same period last year growth of 14.4%, of which Chau Ming and the construction of the top two performance increase, reaching 33.9% and 12.9% respectively (see Figure 1).

[figure 1] comparison of 1H13 operating income of listed companies (unit: RMB)

Source:LEDinside

In the small spacing TV concept driven, Riyadh in performance over the same period last year growth of 7.9%. Especially since the beginning of 2013 May, a rapid increase in the first half of Riyadh orders, new orders and pre winning projects total over the same period last year increased by about 40%, 2Q13 directly promote the total revenue reached 162 million (see Figure 2); and after the July LED TV liard new conference and a series of marketing activities, as of July 31, 2013, LED signed a small spacing TV in order to reach 157 million yuan, while only half of the recognition of revenue 57 million 230 thousand yuan, representing an increase of 668.03%, gross margin reached 39.5%. Small pitch screen nearly 300 thousand square meters of RMB/ although the price can not be a lot to civilian, but in the special application of price elasticity is relatively low if the annual sales of 1000 square meters which can contribute 300 million yuan revenue, gross profit and substantial, so performance there is a big imagination.

The photoelectric display in the domestic market by the government procurement and the decline generally shrinking, enjoy long-term focus on outdoor advertising media and other segments of the competitive advantage, the domestic business income of 167 million 630 thousand yuan, an increase of 10.31%, gross margin of 21.87%. In addition to benefit from the overall situation of the overall situation of the display screen to improve the environment, the first half of the display screen export sales revenue 84 million 770 thousand yuan, an increase of 20.46%, gross margin is as high as $30.5%.

Chau Ming Technology revenue from a rapid increase in revenue from the current period of integration into the new acquisition of Lei Christian Dior Co. Lei Christian Dior Co operating income of 60 million 210 thousand yuan during the current period, net profit of $7 million 710 thousand. The European science and technology parent company is benefiting from the release of production capacity, turnover grew by 31 million 930 thousand yuan.

[figure 2] comparison of quarterly operating income of listed companies (unit: RMB)

Source:LEDinside

Alto electronics is due to the first half of 2013 to raise investment project "LED information release and indication system project completed and put into production in Nanjing, the relevant manufacturing system from Shenzhen moved to Nanjing, have some impact on production and sales, fell 8.85% over the same period last year, 2Q13 revenue in the first half of overall revenue fell 5%. But a slight decline in revenue at the same time, alto by virtue of technology driven differentiation competitive strategy, the overall gross profit margin does not fall, in some electronic receipt box high margin products with 2Q13, the company gross margin reached 48 million 110 thousand, gross margin is as high as 55.92%, far more than other industry listed companies (see Figure 3). This figure in excess capacity, most companies can only maintain a single digit gross margin display industry, it is a miracle. If that is the most profitable company in the Alto electronic display industry, I am afraid there will be no objection.

[figure 3] comparison of gross profit margin of listed companies

Source:LEDinside

Screen enterprise inventory turnover rate is low, the operational capacity of urgent need to upgrade

Display inventory turnover days are generally high. Compared with the display industry of machinery and plant input requirements of LED upstream industry is relatively low, with light assets, fixed assets in total assets is relatively low, and a large number of floating assets exist in the form of inventory, on the one hand can meet the rapid response to customer demand, to achieve the speed of delivery to strengthen the competitiveness of the market, but on the other on the one hand, prices continued rapid decline of the LED industry, high inventory level is likely to bear down the value of risk. In order to Riyadh and Chau Ming technology as an example, for up to 260 days of inventory turnover days, mean 9 months all the inventory will be a turnover, the risk of inventory impairment remarkable. Especially the state of science and technology, inventory of finished products reached 95 million 880 thousand, and has not issued into sales of goods up to 93 million 30 thousand, the backlog in the warehouse and the channel product value of about 189 million, down 10% as value reached 18 million 900 thousand, while only 655 thousand and 700 Chau Ming provision, lack of the value of 1%, obviously can not fully reflect the risk.

[figure 4] inventory turnover days of listed companies (unit: day)

Source:LEDinside

The accounts receivable is plagued by the display industry, another chronic disease, since this year, more than the display of corporate failures are mostly due to excessive accounts receivable, the final rupture of the capital chain and bankruptcy. Display industry because of the nature of the project is more of an order, return cycle is generally longer, while the