Konka recovery: the new main industry LED no opponent

In the intense competition of the industry veteran appliance business - Konka Group Limited by Share Ltd (000016.SZ, referred to as "Konka") once in looking for new profit growth point, now, LED industry has become the hottest new industry.

Compared with other color TV giant, Konka is an alternative choice: other peers choose to enter the field of white goods, and strive to become a force in this industry.

At least from the current situation, this choice is not wrong. Data provided by the company insiders show that in the first half of this business to less than 3% of total revenue of the company, contributed to the company's net profit of nearly 4.

Konka August 23rd report released in the first half of this year, said the first half of this year, the total revenue of about 5 billion 600 million yuan, net profit of about $80 million.

New gold deposit

At present, the LED industry has more than and 200 manufacturers nationwide, of which 80% of the market share is occupied by the manufacturers of the 20%. The general manager of Konka new video company assistant Lei Jing said, "real domestic brands almost no, so the domestic LED project bidding, Konka will be invited to bid, and bid rate is extremely high. "

Lei Jing said, the end of November last year, the Beijing Olympic Village building contractor Morgan Pangu only issued tenders to three manufacturers, but only a China Konka company. "At that time, the requirements of the tender is the company's annual production scale and R & D capabilities and product stability and overall technical solutions. After December we won the bid in April 2008, requires developers of the completion time of the whole project, only more than and 100 days, from installation to debugging. "Lei Jing said.

A Beijing LED agent said, one of the reasons why only a Chinese company won the bid, in addition to Konka brand accumulation, there is such a large LED project needs loaning, the manufacturer of the scale of capital requirements, so this billion project, Konka only large companies such funds can run over.

Clearly, waiting for Konka is a new gold rush, a favorable opportunity for real competitors have not yet grown up. Lei Jing said, at the end of 2006, Konka LED in the formation of large-scale production, the first half of this year has finally entered the harvest period. In the first half of this year, Konka LED business sales revenue grew 215.77%, reaching $140 million.

Konka is now the largest supplier of Olympic Village LED project, more than 5000 meters of LED area, a total of more than 200 million yuan. In the Olympic Village project currently, LED's largest list from overseas Chinese town project in Shenzhen, the total price of 40 million yuan.

It is estimated that in 2007 the national LED display market sales of about 7 billion 200 million yuan, is expected in the future global LED market size will reach $300 billion.

Transformation

Before the large-scale production of LED, the three main Konka color TV, mobile phone and is white, common of the three industry is the average profit has touched the ceiling, while the new industry Konka LED is a sunrise industry. SmartClub market advisory company general manager Zhang Kai said that the China LED industry is in the stage of the blowout, 2010 China LED market is expected to reach 32 billion yuan, while another opportunity is domestic brands have not formed, "this is the winning Konka this old appliance business opportunities".

2007, in the black and white cell phone competition has intensified to open up new profit growth point Konka white field. The face of the original white strong brand interception, the current black electricity companies are still difficult to enter the first camp. At that time, Konka Group executives said Konka will continue to accelerate the pace of production capacity in the future through self built, joint ventures, mergers and acquisitions, etc..

Konka secretaries Xiao Qing said that in 2008 the global economy suffered "cold", the China color TV industry, overseas market hard, RMB appreciation, rising raw material prices, labor costs, export tax rebates reduced inflation, so let enterprises feel the pressure. These allow Konka has been committed to strategic transformation.

In fact, Konka in the white field to blaze a new trail to the station is not easy. The first step in the transformation of the TV giant is to enter the white, but the industry to upgrade the product fast, high demand for the market segments, Konka, Changhong and Hisense are infiltrated into the new power of white. At present, these companies to expand the overall size of the enterprise, but did not become a profit support. In addition, there is no white revolutionary technology generation, so that the new influx of black electricity companies face great pressure. Zhang Kai, general manager of Guangzhou wisdom market consulting firm, said, in this case, the same is the main industry of Konka, LED profit prospects will be better, the advantages of its big brands will be more obvious. But the problem is that the LED industry threshold is low, is currently a hot investment, so the future competition will become more intense.

In the new video business, outdoor advertising operators and entertainment companies are our main customers. "Official video Konka new company told reporters that" the future will further extend the LED business, including lighting, lighting, back light source, which will be part of a new industry of konka. "

Deputy general manager Xiao Qing told reporters that the new strategy including Konka TV business on the three or four deep level market, completed the transformation of 1200 flat market channel two or three terminal stores; white transformation of high-end market; mobile phone business by the overseas market and the operators began to twist into profit. In addition, he stressed that the new video business has become a new profit growth point konka. In addition to winning the Olympic Games, Kang