Benefit from the downstream industry (sports, culture, advertising) to enhance the demand and the expansion of small-distance display of the explosive growth, LED display industry in 2013 to complete the initial industry reshuffle since the boom continues to improve in the industry and industrial chain integration To the depth of development at the same time, the industry's leading companies on the LED display mode of operation of a lot of exploration and innovation, the future is expected to usher in the performance and valuation of the double upgrade.
LED display industry into the era of mergers and acquisitions, the next three years there will be revenue 30-40 billion enterprises.
LED display industry CR6 ≈ 14%, industry concentration was significantly lower. Since 2013, the industry boom bottomed out, the industry gradually increased mergers and acquisitions, based on our understanding of the industrial chain and the industry's entrepreneurial position, we have to determine the LED display industry has entered a large merger, the leading enterprises will be listed The poor capital market opened the prelude to large-scale mergers and acquisitions in order to form a scale effect.
Small-distance display technology explosive development, is expected to overturn the industry ceiling. Relative to the DLP and LCD splicing display technology, small spacing display in the display, energy consumption, maintenance costs and other aspects of a comprehensive potential, small distance lamp beads prices continue to be expected to continue to promote the industry continued explosive growth, small spacing display Scenario application will be divided into three stages: 1, high-end display field alternative DLP and LCD fight wall; 2 into the mall airport and other high-end indoor display place; 3, into the high-end civilian market; each stage will be expected to release billions of market space. This year the small pitch manufacturers orders full, tight production, the industry is expected to continue to maintain more than 80% growth rate, the market size exceeded 5 billion yuan.
Three downstream industry (sports, stage performing arts, outdoor advertising) boom, high extension of the industrial chain, the extension is expected to clear. The rapid development of the downstream industry not only pulled up the LED display industry boom, but also enhance the LED display company upstream and downstream industry chain is expected, the current mainstream companies in the industry have sports, stage entertainment, outdoor advertising and other fields Strategic layout, the relevant target is expected to benefit from the depth of this industry trends, bringing greater valuation flexibility.
From heavy asset manufacturing to light assets scene operations, LED display business model has been escalating. With the LED display application continues to expand, the traditional model of pure sales of hardware has been unable to adapt to the industry situation, the industry mainstream companies began to LED display scene operations (wine, district, etc.) to try, the new operation Model is expected to significantly enhance the performance of the company's elasticity.
Chau Ming Technology: endogenous transformation of a wide space, the development of extension of the outbreak
Market competition, the company continued high-speed growth performance. LED display industry market dispersion, and with the technical barriers to enhance the industry naturally entered the company phase of mergers and acquisitions. 15 years the company relies on product upgrading, small distance into the business upside and the acquisition of Redodo to expand overseas display market, profit growth of 86.61%, and profit growth rate ahead of revenue growth rate, indicating that the company developed a new high Profit business direction. The company's overseas brand promotion, the initial effect of the layout, overseas revenue grew 53.88%, epitaxial development of outstanding results.
Small-pitch product performance growth, help companies to develop. The company developed the LED small pitch products to go in the forefront of the display technology alternative tide, product cost, technology, first-mover advantage to ensure its nearly three years 70% revenue growth rate. With the expansion of the domestic market and the gradual expansion of the display area to the civilian sector to expand, for high-end exhibition direction of the company's products will be more popular, its 15-year product revenue grew 122.61%. The company focused on segmentation, seeking differentiation and leading the introduction of high value-added products, of which 2mm small pitch products is the strongest driving force for its performance growth. And the company's active layout in the overseas, will help open up overseas small pitch market.
Acquisition of Redo, to create the stage show rental faucet. 15 years of Redo performance and table, the profit accounted for 45.90%. Red Duo deep plowing in Europe and the United States high-end LED display rental areas, for the stage, exhibition and other large places to provide LED display rental screen service, the customization of the creative screen ratio is high, to ensure a high profit margin. Reddy's competitive advantage will continue in the next few years, the company's overseas creative screen performance will continue to grow. In addition, the company will try to open up the domestic creative screen rental market, promote the unified layout at home and abroad, and common growth.
Layout wisdom city, open O2O mode. The company developed the intelligent lighting control system (Unilumin1.1), in the provision of road lighting services on the basis of the wisdom of the city to provide secondary platform security monitoring, intelligent positioning, public information video playback, Wi-Fi micro-base stations and other people's livelihood service. At present, the system already has the production capacity, for the company to become a city lighting system to solve service providers to provide a solid foundation, the company may become the future performance growth point. In the field of indoor lighting, the company through investment in the source of lighting, the South cloud cloud, Eisai network and other Internet companies will extend the sales channels to the line, and the company to cultivate the lighting industry for many years the first B2B platform has also been completed. Companies to implement the "Internet +" strategy, the development of "lighting O2O", will help enhance the company's storage capacity, and promote sales channels diversification.
Risk hint: market competition intensified; O2O model integration is not up to expectations; M & A companies operating less than expected
Lianjian Optoelectronics: Lian Jian photoelectric cost-effective acquisition of Tibet Park as access to Chengdu monopoly parking media, customer resources
August 4 evening to build photoelectric announcement: Shenzhen City, built photoelectric Co., Ltd. to be self-financing of not more than 13,000 yuan by the wholly-owned subsidiary of Sichuan Times Advertising Media Co., Ltd. to Langsen, Song Jie to buy its Holding 100% stake in Tibet Zhanbo Culture Communication Co., Ltd. After the completion of the transaction, the time-sharing media will hold 100% stake in Tibet, and Tibet will become the second-class wholly-owned subsidiary of the company.
Our analysis and judgment: the acquisition of a very cost-effective, access to Chengdu monopoly parking media, customer resources.
1, the purchase price of the subject is reasonable, and real estate and cash security, security margin is extremely high.
The amount of 130 million to 10 times the acquisition of PE, and six installments, the purchase price is 6 times the profit of 1.6 times. The first payment of 28 million yuan accounted for 21% of payment.
2, Tibet, as the media resources to cover more than 95% of Chengdu's core business district and high-end hotels, residential areas, after the acquisition of joint construction optoelectronics to obtain local high-quality outdoor advertising media resources, expand local advertising channels, covering local advertisers, To achieve the expansion of the company's outdoor media resources business plan.
3, the future can look forward to Tibet as the "outdoor media + Internet" mode of operation 3. Investment advice.
We expect the company's net profit for the 2016-2017 period to be 4.5 / 670 million, corresponding to EPS of 0.75 / 1.1 yuan, corresponding to the current share price PE of 27.76 / 18.30 times, given the company "recommended" rating.
4. Risk Warning: Policy Risk
Liyad: more flowering, audiovisual feast Kaihua chapter
Riyadh - from manufacturing to multi-drive, into a new stage of development
Liyad after 20 years of development, the company stick to the LED hardware display on the basis of the industry is committed to providing LED industry chain integrated solutions. After a year or two of exploration, the company has completed a magnificent upgrade from LED display business single-wheel drive to multi-drive. Since 2016, the company in the integration of existing sound and optoelectronic business based on the development of the whole industry chain integrated solutions at the same time, through the means of extension of mergers and acquisitions continue to obtain virtual reality related to the basic technical reserves. Now the company has stood on a new platform, the future will face a broader space for development.
Hardware display continues to force, the future is still worth the wait
In recent years, due to the scope of LED display applications continue to force, the company's hardware display business from the simple indoor and outdoor large-screen business gradually extended to include outdoor large screen, indoor large screen, high-end TV and naked eye VR and other new display Business situation. China's sports market boom brought about by the transformation of the stadium demand, creating a new LED blue ocean market segments. With small pitch technology, the company in the field of large-screen access to the right to speak at the same time, to achieve the rapid growth of performance, the future with the small pitch technology continues to mature and continue to expand the scope of application, Liya is expected to high-end civilian TV And new display areas to gain new room for growth.
Multi - dimensional fusion force comprehensive vision, build science and technology culture and financial ecology
From 2015 onwards, with the addition of Lufeng culture, the company gradually layout of the visual culture industry, through investment and mergers and acquisitions, etc., Li Yad gradually set up the development of visual culture based on technical reserves. The formation of the science and technology, including tourism and entertainment for the profit model of the AR small distance display system to military simulation training for the application of the object, embedded small pitch technology, naked eye VR scene construction and wearable VR platform for the game, experience shop, marketing promotion Commercial application of three directions deep plowing the basic framework of visual science and technology. The future With the company in the visual culture in depth, science and technology culture and financial ecology will also be gradually clear.
Overseas strategy steadily, to create a global leader in audio-visual culture
Since the company opened overseas strategy, has been established in the world a more complete sales system and cooperation model. The acquisition of Planar in the United States in 2015, in addition to the product and market distribution and its synergies, from the absorption of Planar advanced technology and management experience can also drive the company better and faster to achieve internationalization. Future companies are expected to be leaders in global audiovisual culture by virtue of their comprehensive global marketing services network, leading small pitch technology and efficient production and supply chain response speeds.