In the third quarter of 2013, the news of the bankruptcy of the LED display industry was frequently reported. It was very tight in the industry. When the crisis of the capital chain break caused another round of bankruptcy, the display industry in the fourth quarter was surprisingly returning to calm. .
After the news of the boss's running, production stoppage and bankruptcy entered the fourth quarter, although it is rarely heard, in fact, behind the seemingly calm of the entire LED display industry, it is still undercurrent, and the merger between listed companies and powerful companies. The reorganization and the game of capital games have been staged.
At the end of October 2013, Guangdong Media announced that the company and its wholly-owned subsidiary intend to acquire Shanghai 100 shares of Shanghai Xiangli Advertising Media Co., Ltd. in a total of 450 million yuan in a combination of cash and issuance of shares. Outdoor LED display media field.
Nearly a month later, Liard announced that it intends to acquire 100 shares of Beijing Interconnected Yida Technology Co., Ltd. for 40.83 million yuan, with a premium of 27 times, to accelerate the penetration of the main business of LED display into the field of radio and television.
Subsequently, the two-month suspension of Lianjian Optoelectronics announced that it intends to acquire a 100-share stake in Sichuan Timeshare Advertising Media Co., Ltd. for a total of 860 million yuan in a combination of cash and issuance of shares.
It is not difficult to see that the entire LED display industry has entered the integration period, and the pace of mergers and acquisitions among the leading manufacturers in the industry is gradually accelerating. In this process, in order to seek new profit growth points, integrating channel resources and exploring emerging markets are increasingly becoming the focus of LED display companies.
Channel expansion is mixed. In mid-May 2013, Dehao Runda invested a high premium of 640 million yuan to Beijing Weimei Shengjing Advertising Co., Ltd. (hereinafter referred to as Weimei Shengjing), a subsidiary of Nasdaq: AM-CN. Opened the prelude of the industry channel layout war. Although its high investment-to-order method is widely controversial in the industry, it is undeniable that after the current agreement between the two parties, the LED display transformation project of more than 2,000 Sinopec gas stations won by Dehao Runda has made smooth progress.
As of the end of November, we have completed the renovation of the LED display of 400 Sinopec gas stations, basically maintaining an average speed of 50 to 100 gas station renovations per month. Shi Yaozhong, Chairman of Shenzhen Ruitu Display Technology Co., Ltd., a subsidiary of Dehao Runda, recently revealed to reporters that Beijing, Shanghai and Shenzhen have taken the lead in implementing the next phase of gas station reconstruction projects in Guangzhou, Nanjing, Hangzhou and Xi'an. Started one after another.
In fact, Dehao Runda is not the first company to expand the quality resources of gas stations across the country. As early as September 2010, Lianjian Optoelectronics had already taken the lead and reached a series of cooperation agreements (hereinafter referred to as the CNPC Media Project) with Beiguang Mobile Media, which had the exclusive right to operate the media advertisements of PetroChina National Gas Station. The project operation has specially established Zhonghao Media Co., Ltd.
But unfortunately, in the past three years, the Sinopec media project of Lianjian Optoelectronics has not seen any progress. On November 20, 2013, Lianjian Optoelectronics announced that the company agreed to terminate a series of cooperation agreements signed with Beiguang Mobile Media on the CNPC media project, and its planned 250 million yuan order was finally ruined.
Also expand the media resources of gas stations nationwide, why is the ending of the two different? A senior person in the LED display industry told the reporter: From the perspective of capital, Dehao Runda subsidiary Ruituo showed relatively sufficient funds, and the waist was relatively straight, while Lianjian Optoelectronics was nervous in the capital chain, especially Three years ago, Lianjian Optoelectronics had not yet landed in the capital market and lacked strong financial support.
In addition to Lianjian Optoelectronics, the 200 outdoor LED full-color screen contracts signed by Alto Electronics and China Xinhua TV in November 2012 totaling approximately 160 million yuan to 220 million yuan have also been delayed. One month before the 12-month commitment period of Xinhua TV, the project only completed the installation of an LED display screen, so the progress of the implementation of the turtle speed made people have to sweat for their subsequent cooperation.
At the same time, in 2013, the small-pitch LED TV products that once became the focus of public opinion in the industry allowed a few powerful display manufacturers to find business opportunities in emerging markets. The most obvious is the recent acquisition of Internet Access by Liard, accelerating the penetration of LED small-pitch products into the broadcasting and television field, in order to tap the blue ocean of the broadcasting industry market.
In addition, although Zhouming Technology and Ruituo Display are also vigorously deploying small-pitch LED products, they have not yet formed a large sales scale. However, the two have made good progress in channel expansion. In early October 2013, Chau Ming Technology successfully signed the 80 million yuan display project of Guangqi Honda. Guangqi Honda will install zhouzhou 480 4S stores in the country. LED display, while Ruituo showed a comprehensive strategic partnership with Wanda Group and its hotel management company at the end of September 2013. Nearly 100 five-star hotels opened and unopened by Wanda Group. A unified display of the Rio Tinto display large LED display will be installed.
In addition to the sales channels, LED display companies are increasingly becoming the norm for the downstream of the advertising media industry chain. However, this new business model has been controversial in the industry, and because the investment benefits are difficult to show in the short term, many of the display companies across the bank are even less optimistic about their prospects. Even so, from the second quarter of 2013, LED display companies represented by Lianjian Optoelectronics and Lehman Optoelectronics have begun to increase the layout of outdoor LED display advertising media business.
After the 250 million orders of the CNPC media project, Lianjian Optoelectronics seems to be more and more frustrated, smashing 860 million yuan to the Sichuan time-sharing media, and bet on its national urban landmark outdoor LED advertising network business.
It is understood that Timeshare Media has cooperated with 10,126 regional media owners or media operators nationwide to establish an outdoor advertising resource database covering 330 cities across the country, with 44,288 advertising resources, and has been FAW-Volkswagen, Beijing Hyundai, and Microsoft. Many famous brand advertisers at home and abroad such as Lenovo and Konka provide outdoor advertising solutions. Despite this, the industry is still not very optimistic about the prospects for its future operations.
LED display manufacturers directly involved in the outdoor advertising media business will inevitably compete with their downstream advertising operations customers, and the media advertising business has a long payback period and it is difficult to achieve profitability in the short term. Wu Xiaogang, general manager of Chip Optoelectronics, told reporters.
The reporter noted that Phoenix Metro Media Co., Ltd. and Nanjing Yongda Outdoor Media Co., Ltd., one of the three major media tycoons in the domestic market for LED outdoor display media advertising, were previously among the top five customers of Lianjian Optoelectronics.
This means that Lianjian Optoelectronics will face an isolated situation of directly competing with some customers for advertising business in the future. In the long run, its LED display main business may shrink. In addition, its increasing advertising time cost amortization and operating expenses may exacerbate the unfavorable situation of its capital chain tension.
In addition, Lehman Optoelectronics, which cooperated with China Super League two years ago to deploy LED media business, although earning a good reputation in the Chinese Super League, an industry insider who is close to Lehman Optoelectronics revealed to reporters that its outdoor LED advertising media business is currently Still at a loss. Although Evergrande won the championship not long ago, Lehman Optoelectronics' stock price is obviously stronger than the broader market in the short term, but its outdoor LED media business has not yet earned a penny.
In fact, LED display companies have expanded their outdoor LED media business model in overseas markets. The international LED display giants Daktronics and Barco have packaged sales of LED display, planning and advertising services, with annual revenues of nearly 30. 100 million yuan.
In China, according to statistics from the LED Industry Research Institute, it is estimated that by 2015 China's outdoor LED display advertising market will exceed 2.7 billion yuan, while the demand for display screens used in outdoor media is growing at a rate of 25 per year.
Although the market prospects are optimistic, with the promotion of the outdoor LED large-screen advertising media in the provincial capitals by Tulip Media, Phoenix Metropolis Media and Guangdong Media, the remaining 30% of the outdoor LED display media market will become increasingly fierce. A senior executive of the Baishi Optoelectronics Marketing Center told reporters that it is not optimistic about the strategy of Lianjian Optoelectronics' time-sharing media.
Display manufacturers enter the outdoor LED large-screen advertising industry is the integration of upstream and downstream, but the current domestic LED screen point resources are scarce, the future development of the two combined mainly depends on the operation of its media resources and advertising business team management capabilities . Chen Guangchao, the secretary of the Guangdong Media, told reporters.
In Chen Guangchao's view, the key factors for the display manufacturer to operate the outdoor LED large-screen advertising business in order to achieve real profitability depend on the market layout of media resources, its technological innovation and content marketing, and the degree of integration with the international, in addition, in customer service. Use the new database and authoritative delivery evaluation criteria to speak.
Market Concentration Improves Channel Layout Differentiation From the M&A and reorganization actions of several major LED display manufacturers in 2013, the domestic LED display market concentration is further improving, and the overall pattern is basically stable. In order to break through the profit bottleneck, LED display scale companies are looking for other businesses such as mergers and acquisitions or transformation of LED lighting. The listed LED display companies have begun to leverage the power of the capital market to integrate downstream channel resources and explore emerging markets.
Real estate developers, advertising companies and commercial organizations are increasingly becoming alternative government projects, from the perspective of Ruituo Display Wanda Real Estate, Zhouming Technology Winning Guangzhou Automobile Honda 4S Store, and Konka Video Winning Shenzhen Airport T3 Terminal. The large bidders, so these large-capital giants will compete in the commercial real estate field in the future.
Liard, who is the leader in the field of small-pitch LED display, has positioned the market in high-end fields such as military and broadcasting. In 2013, Liard won several CCTV studio wall projects, and the recent acquisition of Internet Access is an example. LED display companies such as Lianjian Optoelectronics, Lehman Optoelectronics, and Xi'an Qingsong Technology began to diversify their main business structures into LED display manufacturing and outdoor media operations. Although the market demand for outdoor advertising is relatively large, it is secretly the contest of encircling the king. Who can win the approval of the advertisements and who is the winner.
In addition, the low-end field of LED display has also developed a carve situation. Fujian Powerful Color Optoelectronics, which started with a single-color screen, has sprung up in the market with low-cost full-color LED display, which has rapidly expanded its market share.
In the future, LED display companies will compete for capital chain support, channel integration, cost control and emerging market development. Ruituo shows that the two production lines in Wuhu and Shenzhen will be concentrated in Zhuhai Ruituo Industrial Park in order to upgrade the company. The overall competitiveness. Shi Yaozhong said that the overall layout of the domestic LED display industry has gradually become clear, and the living space of small and medium LED display manufacturers will be further squeezed.
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