Hass One Billion "Core" Plan Core and Screen layout

A news broadcast from the news network gained a lot of attention from the market. On August 21, the Ministry of Industry and Information Technology said that China's self-developed smart TV chip has been successfully developed and it has achieved volume production for the first time. It is reported that this is a smart TV chip that is developed by Huawei Hass Semiconductor, has independent intellectual property rights, and has achieved mass production. This is also the first domestic product that a color TV company cooperates with domestic chip companies.

Once, “Lack of Core and Less Screen” is a chronic problem in China's consumer electronics industry, especially in the field of smart TVs where both display panels and decoder chips require high levels. With the government's increasing support for the LCD panel industry in recent years, outstanding manufacturers such as China Star Optoelectronics, BOE, and Nanjing Panda have emerged. This has enabled China's LCD panels to hold up half the world's panel industry, including shipments of 32-inch LCD panels. In terms of volume, China Star Optoelectronics has surpassed Samsung (SDC) and LG (LGD) to rank first in the world.

In contrast, the chip industry has always been the world's largest industrial giant. As a key component of smart TVs, China's smart TV chips are almost all dependent on imports, and the lack of chips has severely restricted the color TV industry's further development to high-end areas. Therefore, the Ministry of Industry and Information Technology attaches particular importance to the independent research and development of domestic chips. In recent years, major national science and technology major projects such as “Nuclear High Base” have continuously supported domestic chip companies and color TV companies to jointly develop smart TV chip research and development and improve the industry for the color TV industry in the future. The ecosystem has laid a good foundation.

National 100 billion "core plan" movie

In May this year, it was reported that government departments will set up a fund with a scale of 100 billion yuan, focusing on supporting domestic IC companies to change the status quo of domestic memory chip blanks. It is reported that the newly established fund will be composed of government departments and social funds, invest in domestic enterprises with equity investment, and support local companies to become bigger and stronger.

Recently, the TCL Group has issued a 5.7 billion targeted increase plan. From the details of the fixed increase announcement, we can see the support of some countries for industrial capital support.

According to the fixed-incendment announcement, TCL Group intends to issue shares to 10 specific targets including Huizhou Investment Control, China Development Bank, Ziguang Communications, and CITIC Capital. The total amount of funds raised is 5.7 billion yuan, which is mainly due to the construction of the China Star Optoelectronics t2 project. In addition to TCL’s major shareholder Huizhou Holdings, China Development Bank and Ziguang Communications, which are subject to additional issuance, have attracted market attention. Because from the previous series of investment actions, this does not seem to be an ordinary financial investment project.

The background of China Development Bank is well-known as an important fund platform for the country to support strategic emerging industries. China Development Finance is also the only equity investment platform of the China Development Bank. The increase in participation in the TCL is a single issue of the China Development Bank for listed companies. The largest equity investment, so generous, also reflects the recognition of the future long-term value of TCL under the market-oriented investment. Perhaps this also shows that the national-level strategic capital recognizes and supports the LCD panel industry chain.

Ziguang Communications is a leading domestic communication chip company. In June 2013, Ziguang Group had shocked the market with its acquisition of Spreadtrum Communications for US$1.48 billion. It is evident from the ambition and strength of the purple integrated capital telecommunications semiconductor industry. The investment of the Ziguang Capital may be a long-term and in-depth cooperation space with the TCL Group in the future, which does not rule out the fact that TCL has already participated in a chip manufacturer Amlogic. More importantly, the purple light system intends to extend from the upstream to the downstream of the industry, opening up the strategic intention of the entire industry chain of consumer electronics, and can form a good coordination effect with TCL. From this point of view, the opening of the China National Capital and Ziguang Capital into the TCL Group is likely to be part of the country’s 100 billion yuan "core project." This time, the cooperation between the National Department of Kaikai, the purple light system, and TCL involves the capital level and the upstream and downstream of the industrial chain. It is broader than Skyworth and Hass and has more room for delusion.

Core-plus-screen national team layout of the entire industry chain

Individual chips or screens cannot really experience the value of their products. Only when the two are organically integrated, can they release the greatest charm of industrial integration. In fact, the state capital has previously supported the liquid crystal panel industry is not small. The goal set by the Ministry of Industry and Information Technology in the "12th Five-Year Plan" development plan for electronic information manufacturing industry is that the self-sufficiency ratio of flat-panel TV panels has reached over 80%, and the current self-sufficiency rate is still at a relatively low level, making the development of the panel industry still a priority. weight.

Industrial capital dares to continue to increase investment, but also from the consideration of future panel market demand. At present, the trend of large-size LCD TVs in the world is accelerating. Although the number growth is weak, the area growth rate remains relatively fast. According to NPD DisplaySearch data, by 2017, domestic LCD TV panels will basically reach a balance between supply and demand. It is also one of the reasons why the industry continues to increase production.

Industrial investment considers all kinds of tall things. This time, the real capital of each of the 5.7 billion yuan is invested by TCL Group into the fixed-income project of Huaxing Optoelectronics, because Huaxing Optoelectronics itself is a fragrance.

First of all, from the current t1 project alone, Huaxing Optoelectronics has already become a grisly cash cow. According to the latest TCL group report, the operating income of China Star Optoelectronics panel was 8.506 billion yuan in the first half of the year, a year-on-year increase of 24.8%, and a net profit of 981 million yuan.

Second, China Star Optronics's operating indicators are in the leading position in the industry. In the recent TCL snowball interview, some investors asked about the operating efficiency of China Star Optoelectronics. TCL said that shipments of Huaxing Optoelectronics t1 project accounted for 10% of the global TV LCD panel in the second quarter of this year, and the industry ranked fifth, and its Operating indicators such as operating profit margin and net profit rate ranked first in the industry for six consecutive quarters, surpassing international giants such as Samsung and LG.

According to a recent report of a brokerage firm, Huaxing Optoelectronics' operating efficiency is quite high. In 2013, the asset turnover rate reached 53%, which is 11% higher than the peers' 42%. As the company's panel is in short supply, the company's operating cycle is also short, and the cash cycle is only -2.2 days. This indicator is the best in the industry.

Huaxing Optoelectronics' screens and the chips of Ziguang Communications are natural complementary products. The in-depth cooperation between the two can produce more synergies. The cooperation between the Guokai University, the purple light system, and TCL is really starting from the perspective of “adding cores and adding screens” and is expected to become a demonstration of the integration of core-screen integration and compose a story of industry penetration.