At the end of 2017, the six listed LED display companies successively announced their annual performance forecasts, which caused a lot of attention in the industry. However, several companies rejoice and worry. According to the performance reports disclosed by the companies, the profitability of the six listed companies is different. Among them, the net profits of Liade, Zhouming Technology, and Alto Electronics are 80.59%, 77.96%, The growth rate of 52.88% rose sharply. The net profit of Lianjian Optoelectronics was almost the same as the previous year, while the net profits of Absen and Lehman fell by 32.61% and 34.40% respectively over the same period.

  As the industry's leading companies, the six listed LED screen companies have always led the industry's development trend. Through analysis of the reasons for the large gap in the profit growth rate of these six companies, it may be possible for the major companies in the LED display industry to bring in the new year. Some industries are new.

Comparison of 2017 annual performance data of LED listed companies

Liad, Zhouming Technology: Strengthening the competitiveness of small-pitch products, rapid growth in corporate performance

Riad's total operating income in 2017 was 6.511 billion yuan, an increase of 48.71% over the same period last year, and operating profit was 1.194 billion yuan. The net profit attributable to shareholders of listed companies was 1.208 billion yuan, an increase of 80.59% over the same period last year. Regarding the reasons for the change in performance, Liyad said that the company's total of new orders and new bids in 2017 reached 10.2 billion yuan, of which the small interval order was about 2.75 billion yuan, an increase of 51% over the same period last year. This is the main reason for the company's profit growth.

The total operating income of Zhouming Technology in 2017 was 3.029619 trillion yuan, the operating profit was 338.878 million yuan, and the total profit was 359.672 million yuan. The net profit attributable to shareholders of the listed company was 296,249,490 yuan, an increase of 77.96% over 2016. Zhouming Technology believes that the main reasons for the year-on-year increase in net profit in 2017 include the continued improvement of the domestic small-pitch LED market in 2017, and the company's small-pitch products have grown strongly.

Lianjian Optoelectronics, Alto Electronics: completion of mergers and acquisitions to promote stable business growth

Lianjian Optoelectronics' total operating income in 2017 was 4,000,449,497.53 yuan, operating profit was -179,595,657.39 yuan, total profit was 478,777,104.62 yuan, and 2017 difficult net profit was 404,548,159.52 yuan, an increase of 0.39% over the same period last year. Lianjian Optoelectronics said that with the company's merger and acquisition layout basically completed, the company's business layout has been further improved, and can now provide customers with many online and offline integrated marketing solutions.

Alto Electronics achieved total operating income of 1,028,080,645.56 yuan, an increase of 124.92% year-on-year; realized net profit attributable to shareholders of listed companies of 131,907,130.43 yuan, an increase of 52.88% year-on-year. Alto Electronics stated that the increase in the company's net profit was mainly due to the consolidation of 'Shenzhen Qianbaihui Lighting Engineering Co., Ltd.' and 'Shenzhen Alto Lixiang Optoelectronic Technology Co., Ltd.' during the reporting period.

Abison, Lehman shares: exchange rate changes increase exchange losses

In 2017, Absen achieved total operating income of 1,538,115,480.04 yuan, operating profit of 109,084,277.08 yuan, total profit of 117,624,941.93 yuan, and net profit attributable to shareholders of listed companies of 101,995,764.42 yuan, a decrease of 32.61% over the same period last year. The main reasons for the decline in the company's net profit were exchange rate losses during the period, as well as the impairment of goodwill on the acquisition of Shenzhen Weiss Vision Technology Co., Ltd.

In 2017, Lehman Co., Ltd. achieved total operating income of RMB 644.5089 million, operating profit of RMB 20,890,900, total profit of RMB 26,666,800, and net profit attributable to shareholders of listed companies of RMB 20,176,600, a decrease of 34.40% over the same period last year. Lehman said that the company's LED business sales revenue continued to increase, but the exchange loss caused by exchange rate fluctuations, so it has a certain impact on net profit.

The small-pitch market is still hot, bringing unlimited 'money views' to enterprises

With the increasing requirements of end customers for the display quality of LED displays, small-pitch LED displays have the advantages of small pixel pitch and high resolution. Many manufacturers have paid attention to these advantages. Today, small-pitch LED products are not only widely used in advertising media, business display In the field, as the construction of smart cities is in full swing, in the fields of security monitoring, public display business education, etc., it is also widely used, and the application field is constantly expanding. At the same time, COB packaging technology has also achieved a major breakthrough in 2018 after a long technical accumulation. The application of COB to small-pitch LEDs can give users a refreshing feeling and break through the previous competition of smaller and smaller pitches. It also successfully solved the problems of small-pitch outdoor small-pitch packaging and the inherent 'graininess' of LED technology, and injected new vitality into the small-pitch LED products entering the innovation bottleneck.

In the past two years, the small-pitch LED display market has ushered in a blowout-type growth. According to related data, it is expected that the small-pitch LED display will maintain a steady growth of 20% -30% in the future. By 2018, the market size can approach 10 billion. It can be seen that small-pitch LED displays are still the mainstream of the industry's development. In the face of this opportunity, LED display companies should respond to market demand, increase the market layout of small-pitch LED displays, increase corporate sales performance at a high speed, and increase their net business. Receive profits.

RMB exchange rate 'ups and downs' to enter overseas markets need to be cautious

The LED display products made in China have been sold all over the world. Whether in word of mouth or product quality, they enjoy a high international reputation. China has become the world's largest country in the production of LED displays. With the increasing demand of overseas markets, more and more LED display companies have begun to go abroad, and have stepped up their efforts to develop overseas markets. However, in early September 2017, the exchange rate of RMB against the US dollar rose for 11 consecutive days, and the RMB exchange rate went out of a wave of 'ups and downs'. In the LED display industry, several companies that focus on developing overseas markets, including Absen and Alto Electronics, have caused exchange losses due to exchange rate fluctuations, leading to a decline in corporate net profit. Domestic LED display companies need to export their products to overseas markets, which have been greatly affected by fluctuations in the foreign exchange market. Since the beginning of 2018, due to the continued decline of the US dollar exchange rate, the RMB exchange rate has appreciated relatively. In this case, LED display companies need to be more cautious when laying out overseas markets.

In addition, the U.S. has recently made frequent moves in the economic and trade field. On the grounds of protecting 'national security' and resolving 'intellectual property rights', it has imposed tariffs on 60 billion U.S. dollars in Chinese goods and restricted Chinese companies' investment in the United States. 'trade war'. The trouble is not alone. On March 28, Ultravision Tech of the United States applied for a 337 investigation on some LED display companies in China. Major domestic first-class LED display companies were included in the accused list, which caused heated debate in the industry. With the advent of globalization, against the background of global trade protection, there are still unpredictable risks in overseas markets. Whether it is a leading company in the industry or a small and medium-sized enterprise, don't take it alone. Keep a clear mind and recognize the current international market. The situation can develop a comprehensive and clear strategic plan.

M & A wave accelerates industry consolidation

From the reasons for the changes in the performance of major listed companies, we can clearly see that listed companies such as Liade, Zhouming, and Lianjian Optoelectronics have achieved a lot in corporate mergers and acquisitions. In the past two years, under the premise that the market of the LED display industry as a whole is improving, mergers and acquisitions have been favored by a large number of well-funded companies. According to statistics, in the past 2017, there have been more than 30 cases of mergers and acquisitions around the LED field. In the process of industry integration and mergers and acquisitions, the number of companies has gradually decreased, which also means that the LED display industry has become more competitive. After multiple rounds of industry reshuffle, what can really stay is the most competitive company in the market. Optimize and upgrade the LED display industry.

Of course, not all mergers and acquisitions will lead to the growth of corporate profits. A small number of LED screen companies have entered the market and the trend of mergers and acquisitions. With their own capital advantages, they blindly chose the acquired companies. Overall performance gains. Therefore, when an enterprise chooses mergers and acquisitions, whether it is horizontal or vertical, it should start from the enterprise itself and strive to achieve maximum benefits.

From the performance income of major leading companies, it can be seen that although the LED display industry is developing at a high speed, the industry competition is very fierce. If you want to improve the competitive advantage of the company in the market, you must aim at the industry development momentum. At the same time as the technological innovation of large products, it is necessary to develop a set of marketing strategies applicable to the market in order to obtain the maximum operating profit.