Grand pancake era of mergers and acquisitions logic: small screen display super industry exposure

After two or three years of brewing bedding, small spacing LED is expected to usher in the golden age of the outbreak in 2016.

First of all, the field of small spacing LED in the domestic market, government agencies, military security, broadcasting studio and video conference have established a number of benchmark case, for the industry to show users a complete solution for seamless splicing wall. In addition, there are policy support: some government procurement catalog has been canceled DLP products.

Secondly, the overseas market has given full acceptance of small spacing LED with practical action. Europe and the United States have already made some of the small space products manufactured in the studio, shopping centers, stadiums and other places. Samsung, Panasonic, NEC, PHILPS and other electronic giants have also entered the field through OEM or independent production.

According to Industry Association statistics, in 2014 the LED display industry sales in the 2-5 million enterprises 20, in 5-10 billion around 10 enterprises, 1 billion yuan in the enterprise level 3-5, while China's LED display output to 30 billion. We counted the A shares to display the main business of six companies LED display business revenue total, only 4 billion 200 million, accounting for about 14% of the country's total output value. LED display industry: CR6 = 14%, industry concentration is significantly lower. By visiting LED display enterprises and entrepreneurs in the industry reference position, we determine the LED display industry has entered the era of big mergers, has listed leading enterprises have to use the power of capital markets was a prelude to large-scale mergers and acquisitions in order to form scale effect, horizontal merger target in all segments of the unlisted leading vertical the acquisition of concentrated in the lower reaches of the media and system integrators, within the next three years, the industry is expected to 3-5 operating income in giant companies 30-40 billion level.

Turned out, LED display of small spacing era unstoppable

The concept of small pitch LED display proposed by Riyadh in 2008, mass production in 2011, compared with the traditional LED display pixel (light emitting lamp) spacing is smaller, because of the high cost of research and development, technical difficulty, several companies quickly follow only Chau Ming technology within the industry etc.. From our research perspective, then LED small spacing beads costs up to 1.5 yuan / above, in accordance with the 1 million / square meters per square meter standard calculation, small spacing LED panels cost up to a million, started R & D costs as high as more than 10 million, which is the vast majority of enterprises can not afford. Data from the public point of view, there are more than and 20 domestic LED companies released their products with small spacing, small spacing display revenue in 2014 only five enterprises have broken million, including the leader of the state of science and technology segments.

With the improvement of the technology, small spacing display precision can meet the demand of close watch, on display, energy consumption and maintenance cost has a comprehensive advantage, in fact data show that small pitch LED display has gradually eroded DLP and LCD share.

Small spacing + creative screen: Chau Ming technology leading LED segments

Chau Ming technology is the world's leading LED display products and solutions provider, with its solid technical knowledge of LED display industry and a good market reputation, won the 2014 and 2015 "the most competitive enterprise LED display TOP10" first. The company's products are mainly divided into LED full-color display and LED energy-saving lighting two series. The company since its inception in 2004, with LED display business as the foundation of this, in recent years through several acquisitions to further consolidate its leading position in the LED creative screen, small spacing display, sports and other segments of the screen. In recent years, the company has gradually increased the LED lighting high gross profit segments (EMC projects, smart lighting) investment and accumulated a large number of channel resources, the future of lighting business is expected to enter the peatlands stage.

Small spacing outbreak of rapid growth in the performance of the parent company

Since 2012, the industry to benefit from the recovery and small space business outbreak, the parent company net profit growth, net profit of 32 million 971 thousand and 600 yuan in 2013, an increase of 45.26%; 2014 net profit of 60 million 858 thousand and 900 yuan, an increase of 84.58%; 2015 net profit of 113 million 568 thousand and 100 yuan, an increase of 86.61%; the first quarter of 2016 net profit of 20 million 160 thousand yuan, an increase of 159.94%.

2012, the acquisition of the acquisition of Technology located in the east end of the high-end rental market stage creative screen Redio. Ray Dior customers are mainly concentrated in two European North America and other overseas markets, through long-term cooperation and expand channels, with a number of high-quality overseas high-end customers (the company's top five customers are top equipment leasing business, such as XL, PRG, LMG), which has in North America and Europe set up a subsidiary, expanding overseas marketing network. Redio in 2014 launched the "Black Onyx" high density screen star award, Japan China successive gains G-mark awards, Asia's most influential award, the German IF award, the German red dot award 7 international top design awards (including the German IF Design Award in the field of international industrial design known as the "industrial design Oscar" in the world).

A full range of intelligent manufacturing layout, the future unlimited possibilities

With the adjustment of economic structure and changes in the mobile Internet era the advent of LED display industry in brewing a transformation and upgrading, Chau Ming technology product conforms to the national industrial 4 and intelligent manufacturing strategy development trend, from the production line to the product upgrades, the traditional "unilumin manufacturing" gradually transformed into "delta wise made". Adhere to the endogenous + epitaxial hair