What is the reason that prompts large-screen companies to become interested in the capital market? What impact will active capital operations have on the entire industry? Companies are keen on the capital market. Is the era of big companies starting in the big screen market?
“Cross-border” blurs the technical boundaries of enterprises, and financial strength becomes the cornerstone of market competition
With the continuous expansion of application scope and the increasing maturity of core display technology, the boundaries between large-screen display companies are becoming increasingly blurred from a technical perspective - traditional DLP splicing companies represented by Vitron, GQY, Caixun, etc. have been involved in LCD and small-pitch LED displays, while typical LCD giants such as Samsung, Philips, and NEC have also begun to launch small-pitch LED display products. This means that from a horizontal perspective, there is no longer an insurmountable "gap" between large-screen display companies. If they want to stand out in the fierce market competition, enterprises must occupy the commanding heights at the vertical level. Whether it is technological innovation breakthroughs, improvement of brand influence, or expansion of production scale, they all need strong financial strength as support. Entering the capital market is undoubtedly a shortcut to raising funds.
This has become the consensus of people in the industry. For example, Mr. Caiyida Han said frankly in an interview that the domestic small-pitch LED industry is very market-oriented, and companies are in a passive follower state. In order to gain more initiative in the fierce market competition, companies need to continuously accumulate competitive capital, including strong R&D strength and large-scale production. To achieve the above two points, strong financial strength has become a necessary prerequisite. Today, the top companies in the small-pitch market are all listed companies. This is why.
Coincidentally, Mr. Dai of Tonghui Jiashi, which has completed the change of the New Third Board from agreement transfer to market-making transfer, once said frankly that seizing opportunities is the only effective way to avoid risks, especially now that we are in the turbulent stage of the domestic engineering display industry. The upgrade of the New Third Board from agreement transfer to market-making transfer has laid a solid foundation for the company to further utilize the resources of the capital market.
Driven by both technological maturity and application deepening, the key to the expansion of the large-screen display market is not to launch what kind of technology or products, but to launch products that meet the needs of industry users. Both the depth of product technology research and development and the breadth of industry applications are constantly improving. For enterprises, if they want to avoid marginalization, they must increase investment in manpower and material resources. It can be said that strong financial strength is the primary prerequisite for enterprises to become bigger and stronger.
The large-screen display industry has ushered in the "big" era, and refined positioning has become the key
Capital for enterprises is to solve their worries and allow them to let go. Now, with the popularity of the capital market, large-screen display enterprises will inevitably usher in a peak period of expansion. For large-screen display companies, corporate expansion includes two aspects: production scale expansion and business diversification, both of which will have undesirable impacts on the entire industry.
In the large-screen display market, production scale is closely related to product prices. With the continuous expansion of production scale, product price reductions have become inevitable, and this is one of the main obstacles to the popularization of some large-screen display products. For example, small-pitch LED displays are among them. Typical representatives (according to HIS research, the current price difference between small-pitch products below 1mm and 1.2mm-1.9mm products has more than doubled, resulting in products below 1mm being rarely used). Once the price constraints are broken, the application market may quickly open up. The application of large-screen display products is becoming increasingly flexible, and the three mainstream display application markets of LCD, DLP, and small-pitch LED are becoming increasingly intertwined. It is inevitable that one will ebb and flow from the other. Therefore, the expansion of production scale will inevitably lead to changes in the entire industry.
Speaking of business diversification, it is nothing new in the current large-screen display market. Companies such as Vitron, GQY, and Philips have already implemented it. Now, after obtaining sufficient financial support through capital operations, more large-screen display companies will inevitably join in, because the sufficient funds brought by capital operations will encourage companies to conduct more business explorations in order to strive for greater market competition initiative. With the continuous diversification of business operations, the business thinking of enterprises will continue to diverge, even if they focus on inherent market expansion, they will be different, and the changes of enterprises in the industry themselves will inevitably affect the direction of the entire industry.
It is not difficult to see from the above analysis that based on capital operation, more and more companies in the large-screen display industry will enter the "big" enterprise stage. Whether it is due to their own development needs or independent choices of the market, industry consolidation will be inevitable. In the next market competition, in order to highlight their own distinctive operations and cater to both the application market and the capital market, enterprises in the industry will inevitably carry out more detailed industry positioning. This will become an important aspect of the large-screen display market in the era of large enterprises.
ANNA