Home appliance enterprises in the semi annual report of the most significant increase in the proportion of disposable income

Flat-panel TV high margin, income accounted for a substantial increase, air conditioning generally declining profits

Recently, home appliance companies listed in Sichuan Changhong, Hisense, GREE, Midea, Haier, Chunlan, etc. have released the first half of 2005 semi annual report. Flat-panel TVs and air conditioning to become the main force of the performance of these listed companies, but on the other hand, with the rising cost of air conditioning, how to maintain sales growth and ensure profitability, has become a major problem.

Tablet pulling performance soared

Home appliances listed companies, Changhong and Hisense semi annual report is the most beautiful.

Changhong first half of this year, total profit and net profit reached 230 million yuan and 216 million yuan, an increase of 200.87% and 231.35%. of Hisense in the first half of the main business income of 4 billion 460 million yuan, net profit of 33 million 870 thousand yuan, respectively over the same period last year growth of 56.95% and 108.98%.

The two companies invariably attributed to the main reason for the surge in sales of flat-panel TV sales growth. TX investment appliance analyst Zou Gao believes that although Changhong behind the profitability of some of the figures and the relevant accounting treatment, but based on the traditional CRT TV on the growth of flat-panel TV is the biggest profit growth point. Changhong TV in the first half of the year income 4 billion 725 million yuan, an increase of 21.15%, accounting for the main business income of the 65%. in the first half of the main business income of 7 billion 221 million yuan, an increase of 39.86%. Huaxia Securities analyst Chen Yuan Wang appliance said that although flat-panel TV Hisense TV sales accounted for only about 20%, but the gross margin to be flat higher than 15% CRT TV to 20%. so popular Hisense tablet had greatly promoted its TV margin growth. Hisense TV revenue was 4 billion 54 million yuan, an increase of 56.12% over the same period last year, TV gross margin was 17.47%, an increase of 3.08 percentage points over the same period last year, thus laying the foundation for net profit growth of 108.98%.

Changhong spokesman Liu Haizhong said that the color TV business growth depends on the positioning of Changhong. The first half of the year, Changhong launched the ultra-thin CRT and new high-definition television, so that the traditional TV and rear projection TV is still growing, but Liu Haizhong believes that the rapid expansion of TV business growth the main reason is the flat-panel tv. He said, Changhong big tablet strategy has entered a period of effectiveness. Changhong in the first half of this year intensive launch of nearly 50 new products, a substantial reduction in the price of flat-panel TVs also pulled sales growth.

Significant decline in gross profit margin

Chen Yuanwang said that in the first half of this year due to the rising cost of air-conditioning costs, affecting the gross margin of the industry. According to the semi annual report of the three largest white goods, although the first half net profit rose (GREE electric and GREE first half net profit of 268 million yuan, an increase of 22.3%, net profit rose 43.76% U.S.), but Haier is involved due to air conditioning during the first half net profit decline. The first half of this year, Haier refrigerator and air conditioning of the Maori were 11.97% and 11.88% respectively over the same period last year decreased by 5.85% and 0.36%. the main business net profit and earnings per share were 148 million yuan and 0.124 yuan, respectively, over the same period last year decreased by 22.19% and 48.12%. coincidentally, Changhong air conditioning also show a significant drop in gross profit. Changhong air conditioning main business revenue grew 99.24%, but due to the main business costs also increased by an increase of 101.63%, resulting in a decline in gross profit margin. Yesterday, Chunlan also disclosed net profit fell 78.58%. Qingdao Haier secretaries Ji Dong believes that the reason for the decline in net profit of air conditioning, air conditioning to the main raw material for steel, copper and aluminum prices continued to rise this year on the first half of the production, the main business income rose to stop rising cost pressures, resulting in the decline in profits. In addition, there are new air-conditioning energy efficiency standards to improve the market access threshold, to promote the air-conditioning industry restructuring.

Chen Yuanwang said that due to the cost of upgrading the overall average price of air conditioning this year fell little, then the key is to assess the ability of the company's internal adjustment.

Shenyin Wanguo Securities analyst Sun Shengquan believes that in the case of rising costs, the ability to occupy the market share has become the key. Therefore, the first half of the air conditioner can be a major factor in the profitability of sales. He believes that due to fierce competition in the market, Haier sales growth is slow (in the first half of this year sales of 5 billion 100 million yuan, while the same period last year was $4 billion 700 million). Competitors in the first half of this year, sales revenue of 9 billion 500 million yuan, an increase of 70%. U.S. domestic and export grew by 100%. and, while GREE's domestic and export growth of 32.44% and 56.85%.

Channel price war diluted product profit

Qingdao Haier secretaries Ji Dong believes that another reason for the decline in net profit is the promotion of home appliance stores led to increased spending on other companies.

In this regard, China Merchants Securities appliance analyst Feng Zhigang believes that the recent Haier business strategy from the original price to the price, and go to the full and channel cooperation, and channels of the most reliable and simple way is to take the profit growth price offensive, expand sales in exchange for economies of scale. This is bound to dilute the profits of household electrical appliance enterprises.