Boosted by sports events, the performance of the panel duopoly, BOE Technology and TCL Technology, accelerated in the first half of the year, with net profit attributable to the parent company growing much faster than revenue growth.
The TV industry saw further segmentation, with Hisense Visual's net profit attributable to the parent company recovering from the first quarter, while Konka Group continued to face pressure, with losses widening further.
The glory days of smart projection are over, with both XGIMI Technology and Appotronics Technology seeing a significant decline in net profit attributable to the parent company.
This year, TV startup ads and "Russian doll" fees have been rectified in a special campaign, making TV viewing smoother for users.
In addition, a new round of "trade-in" policies has been implemented, but the impact on the overall annual sales volume of TVs may not be significant.
The display panel industry has seen some recovery since 2024.
Despite the slow global economic recovery and no significant improvement in terminal demand, the demand has recovered slightly due to international sports events such as the European Cup, the Copa America, and the Paris Olympics held in June-July.
Data from Ovum shows that global TV panel shipments grew by 1% year-on-year in the first half of 2024, with the shipment area growing by 7% year-on-year.
Among them, the second quarter saw TV panel shipments grow by 1% year-on-year, with the shipment area growing by 6% year-on-year.
A comparison of the performance of panel companies in the first half of the year.
The chart is made by the Beijing News Shell Financial reporter.
The panel leader BOE Technology and TCL Technology performed well, with both seeing triple-digit growth in net profit attributable to the parent company.
In BOE Technology's main business, the display device business revenue was 78 billion yuan, a year-on-year increase of 15%; MLED business revenue was 4 billion yuan, a year-on-year increase of 116%.
Fu Qiang, an analyst at Ping An Securities, mentioned that BOE Technology's performance has improved significantly year-on-year, mainly due to the rise in panel prices in the first half of the year, the further consolidation of the company's leading position in the industry, and the year-on-year increase in OLED shipments, among other factors.
With the weakening of the LCD cycle and the depreciation of the company's production lines nearing the end, the company's LCD profitability is expected to be further released.
TCL Technology's semiconductor display business revenue was 49.9 billion yuan, a year-on-year increase of 40%; net profit was 2.7 billion yuan, an improvement of 6.1 billion yuan year-on-year, of which the second quarter profit was 2.2 billion yuan, a sequential increase of 300%.
At the same time, TCL CSOT participated in the bidding for 70% of the equity of LG Display (China) Co., Ltd. and 100% of the equity of LG Display (Guangzhou) Co., Ltd., and was determined to be the preferred bidder for this equity bidding.
Ma Tianyi, an analyst at Dongwu Securities, believes that the supply and demand in the panel industry improved in the first half of the year, with the main product prices steadily rising, and TCL Technology actively optimized its business strategy and business structure, significantly improving profitability.
If the company participates in the bidding for LG China's equity and a final transaction agreement is reached, TCL CSOT will further enrich its semiconductor display production line technology, and the industry concentration will also be further improved.
"In the first half of the year, brands released demand in advance, and procurement increased, but under the condition that the terminal performance is lower than expected, the overall inventory level of brands is relatively high.
The current price is facing an inflection point, and the demand and support costs for the third quarter between panel factories and brands have not yet been determined.
Faced with the risk of downward revision of brand procurement demand, mainland panel factories plan to reduce production, and the global TV panel shipment faces a greater challenge in the second half of the year."
Chen Hui, the general manager of Ovum, mentioned.
The TV company segmentation, Konka Group is under pressure, and the demand for TV market has changed from popular demand to replacement demand.
Ovum's push data shows that the retail volume of China's color TV market in the first half of 2024 decreased by 7.9% year-on-year, and the retail value increased by 7.1% year-on-year.
A comparison of the performance of color TV companies in the first half of the year.
The chart is made by the Beijing News Shell Financial reporter.
In the first half of the year, TCL Electronics had the fastest revenue growth, Skyworth Group and Konka Group declined year-on-year, and Konka Group was close to halving.
In terms of net profit attributable to the parent company, although Hisense Visual's was the highest, the growth rate declined, but it has obviously recovered compared to the first quarter; TCL Electronics' net profit attributable to the parent company grew the fastest, and Konka Group suffered a big loss again.
Hisense Visual's smart display terminal (excluding laser TV and commercial display business) sales volume was 12.89 million units, and the smart display terminal business revenue was 20.1 billion yuan, a year-on-year increase of 6.30%.
The new display business revenue was 3.4 billion yuan, a year-on-year increase of 14.61%.
Lv Ming, an analyst at Kaiyuan Securities, believes that Hisense Visual was under pressure from short-term panel cost disturbances in the first half of the year, resulting in profit margin pressure.
In the long term, considering the weakening of the supply chain advantages of Japanese and Korean brands and the narrowing gap in product strength between Chinese, Japanese, and Korean brands, he continues to be optimistic about the improvement of brand strength and the continuous deepening of channels, and the increase in global market share represented by Hisense.
TCL TV shipments reached 12.52 million units, a year-on-year increase of 9.2%; revenue was 25.9 billion Hong Kong dollars, a year-on-year increase of 23.2%.
Among them, in the second quarter of 2024, TCL TV shipments reached 6.68 million units, a year-on-year increase of 12.9%, and a sequential increase of 14.3%.
"In the first half of the year, TCL Electronics is expected to see a steady increase in overseas color TV, especially European color TV business, with the improvement of product competitiveness and the expansion of market/channel coverage.
The gross margin is temporarily disturbed by the color TV business, and the cost rate continues to improve under the internal quality improvement and efficiency enhancement."
Lv Ming mentioned.
Skyworth Group's smart TV system products achieved a turnover of 5.5 billion yuan in the mainland China market, a year-on-year increase of 22.3%.
The overseas market turnover was 4 billion yuan, an increase of 3.1% year-on-year.
Thus, the turnover of Skyworth Group's smart TV business in the first half of the year was 9.5 billion yuan.
Sichuan Changhong's TV business revenue was 7.2 billion yuan, a year-on-year increase of 19.19%.
Konka Group's color TV revenue was 2.1 billion yuan, a year-on-year increase of 10.25%; the gross margin was 2.21%, a year-on-year increase of 3.86%.
"Although the retail volume scale of China's color TV market has been reduced in recent years, this does not mean that the market has completely lost its vitality.
On the contrary, against the background of the era of limited competition, China's color TV market is undergoing a profound structural change.
This change is not only reflected in the improvement of product technology but also in the optimization of product structure.
Structural upgrading is becoming the main tone of the development of China's color TV market at present."
Weng Zhenhua, the assistant to the president of Ovum and the general manager of the consumer electronics business division, believes.
The smart projection industry encounters "growing pains".
The smart projection industry is transitioning from rapid growth to a consolidation period.
Ovum's push data shows that the online market retail volume scale increased by 3.4% year-on-year in the first half of 2024, and the retail value decreased by 12% year-on-year.
A comparison of the performance of projection companies in the first half of the year.
The chart is made by the Beijing News Shell Financial reporter.
Industry companies are also facing pressure, with both XGIMI Technology and Appotronics Technology seeing a significant decline in net profit attributable to the parent company.
Appotronics Technology actively adjusts the C-end business strategy and accelerates the clearance of C-end inventory, with both the revenue proportion and gross margin of the C-end business declining.
In the first quarter, Appotronics Technology's cinema business revenue was 153 million yuan.
Affected by the film supply, the company's cinema business performance in the second quarter declined sequentially, with revenue of 114 million yuan.
The company's professional display business revenue was 201 million yuan, flat year-on-year; among them, the engineering field revenue was 124 million yuan, a year-on-year increase of nearly 24%.
XGIMI Technology has slipped from being an "excellent student".
The company mentioned that in the first half of 2024, the domestic projection market demand side is still under pressure, and the company is striving to expand sales channels, accelerate the pace of brand going overseas and globalization strategy.
During the reporting period, the company's overseas revenue increased, offsetting the impact of domestic demand weakness on overall revenue.
Deng Xin, an analyst at Huaan Securities, said that the main reason for the decline in XGIMI Technology's domestic sales revenue in the first half of the year was the price reduction of old products and changes in product structure, with high exports driving profit growth.
Some old products were cleared, resulting in a year-on-year decline in gross margin, but the gross margin has improved quarter-on-quarter due to the increase in overseas proportion.
With the further adjustment of the future revenue structure, the gross margin is expected to be gradually repaired.
Consumer electronics brand Anker Innovation achieved a revenue of 9.6 billion yuan in the first half of the year, a year-on-year increase of 36.55%; net profit attributable to the parent company was 872 million yuan, a year-on-year increase of 6.36%.
Among them, the revenue of wireless Bluetooth earphones, wireless Bluetooth speakers, and laser smart projection was 2.3 billion yuan, a year-on-year increase of 30.84%.
Weng Zhenhua believes that after the end of the epidemic, consumers' purchasing power and confidence have not fully recovered, and they have become more cautious in purchasing non-essentials such as smart projection.
Coupled with the continuous development of the color TV industry towards large sizes, mobile screens also provide consumers with more choices, to some extent, squeezing the market demand for smart projection.
Watching TV has always been difficult and expensive, becoming a thorn in many people's hearts.
Since last year, relevant national departments have started to vigorously rectify the issues of TV startup ads and "Russian doll" fees.
At present, the startup ads of cable TV and IPTV have been completely canceled; in terms of "Russian doll" fees, the qualification rate of each indicator exceeds 96%.
"Focusing on the color TV market, with the continuous advancement of the trade-in policy, it will have a positive pull on color TV products with second-level energy efficiency and above, but considering that the proportion of color TV products with second-level energy efficiency and above is relatively low at this stage, the coverage is relatively narrow, and the impact on the overall annual sales volume may not be significant."
Weng Zhenhua mentioned.
