[Nail Technology Observation] In 2021, panel companies will make a lot of money.
Look at two representative enterprises: BOE's revenue in 2021 was 219.3 billion yuan, an increase of 62% year-on-year; net profit reached a record 25.8 billion yuan, an increase of 413% year-on-year; TCL Technology, which owns TCL Huaxing, achieved operating income of 163.378 billion yuan in 2021, an increase of 113.1%; and achieved a net profit attributable to shareholders of listed companies of 10.062 billion yuan, an increase of 129.3% year-on-year.
But at the same time, the life of TV terminal companies is not good. According to the statistics of major institutions, the retail sales of China's color TV market in 2021 fell below 40 million units, setting a new low in 12 years. There are many reasons for the continuous shrinking of the market size, but the increase in the price of the panel has led to the rise in the price of the terminal product, which has inhibited some of the demand, and it cannot be ignored.
From the second half of 2021, the price of TV panels has shown a downward trend, especially the decline in large-size panels is more obvious. After entering 2022, this trend has continued. The decline in panel prices has also brought some help to the recovery of the terminal market.
"Nail Technology" noted that the two industry analysis agencies of Aowei Ruiwo and Qunzhi Consulting have released the price trend of TV panels in April: According to the expectations of Qunzhi Consulting, the price of panels in April-May will continue to decline: the price of small and medium-sized panels will maintain a decline of 1-2 US dollars, while the price of large-size panels will show a large decline of more than 5 US dollars; Aowei Ruiwo expects that the 65-inch-75-inch panel market, due to the head brand factory cutting orders, the pressure on panel factory shipments will increase, and the price will drop by 5 US dollars in March. The decline is expected to remain at $5 in April.
In the face of the continuous decline in the price of upstream panels, are TV companies happy or worried? "Nail Technology" believes that the downward price of the panel will have two major impacts on the terminal market:
On the one hand, the cost pressure of TV companies has eased, providing space for price reduction promotions. The TV industry is about to usher in the May Day and 618 promotion of two important consumption nodes, and the decline in panel prices has provided momentum for TV companies to stimulate consumption with price leverage. Judging from the current consumption characteristics of the Chinese market, large-size products of 65 inches and above have become the mainstream of consumption, and it is also the size segment with the best growth momentum. Compared with small and medium-sized panels, the price of large-size panels has dropped by a higher margin, which just delivers "ammunition" for the promotion of high-end large-screen TVs.
On the other hand, a new round of price wars is coming, and it is inevitable that the profit margin will continue to decline. Although the price of the panel is declining, from past experience, in order to grab market share in the stock market, the price reduction in the terminal market is likely to be greater. This means that the phased price increase of television will come to an end, replaced by the familiar price war competition. Due to the impact of the epidemic, real estate and other factors, the TV consumer market is still in a downturn since 2022, and the panel price reduction or stimulate a more tragic price war, thereby pulling down the profit margin level of the entire industry.
In summary, "Nail Technology" believes that the panel price reduction as a whole is good for color TV companies, as for the challenge of the price war, in fact, the industry enterprises have long been "desensitized", because the price war in the terminal market has always existed regardless of the rise and fall of the panel, but the intensity is different. (Nail Technology original, reprint must indicate the source: Nail Technology Network)