Wang Donglei: promote the reversion of the A shares and create the whole industry chain lighting enterprise

In a recent announcement, the company is planning on the merger and acquisition of manufacturing and related enterprises in China controlled by NVC, which constitutes a major asset reorganization. Data show that the target of this asset restructuring is NVC holdings, the core asset Rex photoelectric, the transaction is expected to be 4 billion.

The announcement shows that at present, Rex optoelectronic is in the first class level in the brand influence, sales channel and production capacity. There are 34 operating centers in China (exclusive distributor at the provincial level), and there are more than 4000 franchised stores with regional distributors and their subordinates. The coverage rate of provincial capital cities is over 90%. The coverage rate of the city is above 85%, and the coverage rate of county-level or county cities is over 60%.

"In addition to 7 hours of sleep, basically work every day, sometimes an hour of exercise time, the only hobby of golf because the waste of time is abandoned." Wang Donglei talked to reporters about his daily schedule.

At present, NVC has gone through the recovery period, and the integration with de house run Da is advancing. Wang Donglei hopes that the LED chips, packaging technology and products in the upper reaches of de house run Da, and the downstream channel of Rex, improve the efficiency of resource operation, and become a whole industry chain lighting enterprise.

Flip chip

In recent years, the three giants of international lighting have dropped out of the market. PHILPS divestiture assets are listed separately, and OSRAM repeats the same action with GE, and it is stripping the sale of lighting assets.

Wang Donglei believes that the core technology of lighting is in China, and de house run DA has the technical initiative. Reminiscent of the opportunity to cross the border from small household appliances to LED, Wang Donglei said: "at that time, the country pushed seven strategic emerging industries, and de house touched the new energy industries and LED semiconductors, such as plasma batteries, solar energy, and so on, and found that the LED chip has a significant energy saving effect, and it is a new material industry, just at the fourth time of the global lighting industry. The revolution, the choice of this industry, means that we have the opportunity to start at the same time with global enterprises. "

However, the domestic large-scale technology introduction and policy support quickly led to the red sea of the industry. At one time, the domestic LED industry was overcapacity, and the terminal price was low. In order to lead the industry again, DHA run dupA duly invested in the research and development of LED flip chip. In June 2014, dun run Da released the "Sirius" new generation of LED blue light flip chip, and the "Polaris" CSPLED white light flip chip product.

The LED flip chip concept was proposed in 2012, but because the market and technology are not mature enough to be shelved. Nowadays, the flip chip has been regarded as the latest development direction of LED.

"Every watt is not the core element of the time, because of the pursuit of cost, high power drive reverse is the core element, which is why today we just see the flip chip is likely to become the mainstream chip. The Southeast Asian market, the rural market in China, the market below the county level, the large-scale use of flip chip, as the most cost-effective chip, led the use of the whole flip chip in general lighting.

Wang Donglei explained that LED is now the hottest Mini LED and Micro LED. As a display backlight and next generation display technology, Mini LED and Micro LED are flip chip, not a formal chip, so the flip chip is the future direction.

At present, the stability of the industry has improved slightly, but there is still no unified industry standard in the industry. The update cycle of the chip's parameters is extended to 6 months. "The flip chip is slightly better, and the de Howe's chips are leading the domestic industry standards," Wang Donglei said.

The industry is hard and the profit is meagre. In contrast, the house price of Tangjia Bay in Zhuhai, the site of the headquarters of de house run Da, is rising. In the years of the independent research and development chip of de house run Da, the average price of housing in Tangjia Bay has gone from less than 10 thousand yuan into the 3 word era. It's almost an industry consensus that industry does not win real estate, but Wang Donglei never wanted to go into the real estate industry and have been concentrating on manufacturing.

"As long as people have night to need lights, this industry is natural anti cycle," Wang Donglei speed, "the core brand like thunder, but now is a better strategic opportunity, the market is concentrating to the core brand."

Wang Donglei told reporters that at present de house run Da's LED flip chip technology is ranked second in the world, with a capacity of third. With the rapid implementation of the company's increase and investment projects, it is expected to eliminate the capacity bottleneck of the company's LED flip chip link, improve the structure of the chip products, and improve the company's operating indicators.

In the past few years, Wang Donglei has gradually left the front line of scientific research. "I can't choose today. My vice president once said that, I can't go to the lab every day. I should be with bankers and fund managers and what kind of position to do. I still pay attention to the technical direction, keep the technical sensitivity, not care about the technical details, but look at the details of the whole industry and make the shareholders open to the details of the industry. The value is maximized. "

Push the Rex back to A

Wang Donglei believes that NVC, which has been listed for 8 years on the Hong Kong exchange, has been undervalued for a long time. At present, NVC has a market value of only HK $2 billion, and the price to earnings ratio is 6-8 times, while the A - share listed company of the same echelon is close to 40 times the price earnings ratio of OPPLE.

"NVC is a subsidiary of de house run Da, and the current valuation is low. It is also a pity and waste for the investors of the A shares. We want to integrate this asset back and keep the position of Rex listed in Hongkong. " Dunfee, vice president and executive director of de house run Da, said.

In 2016 and 2017, the net profit of the underlying asset Rex optoelectronic was 228 million yuan and 330 million yuan, respectively. According to the forecast, the net profit after deducting non recurrent profits from 2018 to 2021 was 370 million yuan, 450 million yuan, 550 million yuan and 600 million yuan respectively. After the completion of this transaction, de Hao run Da will become the leading lighting enterprise in China, the scale of assets, the scale of operation and the profitability will be greatly improved.

De house run Da run upstream and middle reaches, NVC downstream, this is in 2012 de house run to participate in Rex's existing planning. According to Wang Donglei's plan, under the background of the transformation of LED, the two companies can better achieve complementary advantages and bring industrial synergy.

The fact also proved that de haolt's cost control and efficiency were very strong. After the German family's gene was grafted to Rex, the gross profit rate of NVC products rose from 23.4% to 28.9% from 26.8% to 26.8% from 2015 to 2017. But the innovation of Rex and the modern management enterprises still have distance, waiting for Wang Donglei is not only the business of Rex, but also the reengineering of cultural consensus.

Speaking of the pace of integration, Wang Donglei is more serious: "the pace of integration is slow, not our own expectations, also lower than the market expectations, the reasons for the thunder itself, the reasons for the instability of the Chinese stock market for the last few years, and so on, we can only improve the integration effect." He believes that the industrial roots of the two companies are becoming more and more solid in the time.

The Rex brand and channel are also steadily improving, and Rex has 4200 terminal stores, which was 3800 in 2016. Under the pressure of the industrial downside, Rex's recovery period can be said to be short.

In addition, a brand of upgrading home lighting, such as brawli, Liz castle, has been introduced. "We have to use the latest products and technology to bring consumer art, technology and art to perfect the combination of art and art to form the kernel of Rex's products. This is actually a bit like apple, opening up a new era of IT products." Wang Donglei said.

In collaboration with the Tmall elves, Rex plans to become the gateway to the smart home, and the current research on this plate is specially responsible for the Shenzhen Institute of Rex. The board's next plan for Rex is to be a new building material retail companies, and the fast growing online business has brought a flow base for the Rex brand platform.

Wang Donglei wants to build an influential business in the world. "We have set a number of two strategies at the beginning of our business, and we are still sticking to it today. Our goal is very firm, that is the top three in the world. "

Source: the securities times e company

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