The future market will occur BOE ( “BOE”) brand TVs. Domestic production of LCD panels leading enterprises in Beijing BOE issued a public notice last night that the cause of the proposed implementation of the Beijing BOE machine OEM Factory S1 project and the establishment of machine R & D, production and sales of integrated companies – Beijing BOE Technology Video Co., Ltd.. This means that the company’s formal entry into the field of LCD-TV complete machine, with annual domestic and international sales of flat-panel TV giant carved up more than 20 million units, sales of nearly 100 billion market in China.
Beijing BOE Video Technology Co., Ltd. The total investment 386 million yuan, fixed investment is expected to 066 million yuan, the liquidity needs of 320 million yuan, according to the project operation period of 7 years is estimated that 20% internal rate of return, static investment recovery period is 5 years above.
“BOE machine entering the LCD TV market has been brewing for a long time.” China Video Industry Association’s vice president of Orville Advisory Xiaofeng Jin told reporters, “Generally speaking, open up the upstream and downstream industry chain of success in LCD TV precedent, such as South Korea’s LG, Samsung, Sharp, Sony alike. BOE to enter this market has some advantages, because by virtue of the panel edge, the company’s price control will have a right to speak, both through the panel to make money, but also through the machine to make money. “
BOE into the machine market, in addition to a profit in order to increase channel capacity with a huge panel also has a great relationship. Industry observers Liu-step dust analysis, BOE into the panel as well as machine market demonstrates the company’s LCD TV market in the future, especially the Chinese market is very bullish. However, as the next BOE panel supply more and more, after a problem is extremely urgent, that is, how to digest a huge BOE production capacity? “Clearly, their entry into the area of machine production capacity to digest the most effective way.” Liu-step dust analysis.
BOE currently has a monthly production capacity already in operation 100,000 of five-generation LCD panel production line, a monthly production capacity already in operation 30000 of the 4.5-generation LCD panel production line, under construction, six-generation LCD panel production line monthly capacity up to 9 million units in the fourth quarter of next year’s measure of production, under construction, eight-generation LCD production line has a monthly capacity will reach 90000. Many places in China recently launched multiple LCD panels items, hidden excess capacity has emerged.
In addition, several BOE production line consumes a lot of money. LCD panel market has been a long period of investment, an LCD panel production line easily cost billions of dollars, tens of billions, but the recovery of the investment to generate earnings slow. BOE now has six consecutive quarters of losses. BOE issued yesterday, the third quarter results showed the first three quarters of the company’s losses of 7.5 billion yuan, annual Pre-losing one billion yuan.
Turning right into the LCD TV BOE machine market outlook, Liu-step dust that color TV market is a highly recognized brand in the market, since 2003, a large number of non-color TV enterprises to enter the field of LCD TVs, as parties, BenQ, etc., but the real a competitive edge in the market, the final or traditional color TV enterprises. The top five brands TCL, Konka, Changhong, Hisense Xoceco, and account for 70% of the market share. This shows that the new entrants into the enterprise in order to build a strong position is very difficult. Moreover, also faces South Korea, Japan and other international giants scramble. “My prediction is, BOE difficult to establish the market position in aircraft.” Liu-step dust emphasized.
Xiaofeng Jin also analyzed, BOE has the upper edge, but also have many machine customers, and the relationship between the machine manufacturer is now the partnership. However, if the machine into the market, and the relationship between the machine manufacturers from a simple co-operation has become both cooperation and competition is bound to affect some customer relationships, so how to balance this relationship BOE problem to be solved. The issue is also why the delay in Taiwan’s flat panel business to the downstream expansion of a factor.
“However, in global terms, China’s flat panel display industry has been in previous years, so different from the downstream machine manufacturers have extend its reach into the upper reaches of modules, panels; the upper panel, modular companies are actively expanding to the downstream machine. This shows China’s flat direction of the field moving in a positive development. “Xiaofeng Jin said.
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