Foshan lighting LED products are booming in domestic sales, channel inventory is digested obviously, and the performance is rapidly rising. In the medium and long term, while multi-channel parallel development, this year will increase efforts to export, and overseas OEM business will start quickly. Accelerate the layout of the more profitable lighting business, and the growth logic is clear.
The decline in prices and a new round of global bans have driven the growth of LED lighting, and the rise of the LED lighting industry has become a consensus in the market and industry. In the era of LED lighting, only companies with strong competitiveness in the four major factors of channel, production, brand and scale can become the new LED lighting leader. We believe that Foshan Lighting has become a new leader in the LED lighting industry and is expected to become a new LED lighting leader.
Channel: The traditional distributor channel is strong. In the future, it is expected that the channels will be multi-channel and the traditional distribution channels will be strong. The company has a large distribution channel covering the whole country. The light source has strong throughput capacity, and the company's domestic sales basically through the distribution channel to achieve shipment. Most dealers have worked with the company for many years, growing together, and channel loyalty is high.
In terms of quantity, there are currently nearly 3,000 dealerships nationwide, and it is expected to expand further to 4,000-5,000 this year and next. From the structural point of view, the company's channel structure is stable, adopting a three-level agency model, in which Guangdong Province is directly managed by the company, and the future distribution channels are expected to sink further. It is expected to reach the town level in the Pearl River Delta/Yangtze River Delta area.
Stepping into the LED era, launching various preferential activities and policy-binding dealers. In 2013, it held more than 40 new product promotion and exclusive store joining conferences, covering 19 provinces and 2 municipalities, and launched nearly 100 new products, covering nearly 10,000 dealers. On February 22, 2014, the company held the China Merchants Summit of the Buddha Zhaoguang Yao, all the first-level dealers participated, completed the on-site signing of 280 million yuan, and promoted the Minsheng Bank Foshan branch to purchase some products to provide 200 million yuan of credit. Amount.
At the same time, the company motivated dealers through the rebate program, extended account period, product discounts and other preferential policies to fill the dealer inventory. This series of preferential policies can also be mapped from the company's recent financial data.
Strategic layout of emerging specialty stores and e-commerce channels, multi-channel Baihua Qifang company's store channels and traditional distribution channels are positioned differently, complement each other. The terminal positioning of the store is mainly for home renovation and small-scale engineering customers. The opening is generally located in various types of lighting cities, using direct sales mode. The company mainly develops specialty stores by means of payment for decoration, reduction of intermediate links, high profits and special operation support. At present, the number of specialty stores is about 300-400. In the future, as the company increases investment, the number of specialty stores is expected to reach 3000 in three years. Family.
In addition, the company keeps pace with the times and actively deploys e-commerce channels as an auxiliary channel. At present, the company has established an e-commerce department, cut into e-commerce platforms such as Tmall, Jingdong and Suning, and adopts a conservative pricing strategy that does not impose a large price hike to balance the competitive advantages of various channels.
Production: low production cost, flexible production capacity, large capacity flexibility, fast switching speed, in line with industry standardization and short-term trend. The company has a large capacity of pulling glass bulb/drawing glass tube, and basically realizes direct switching to standardized LED bulb. / Lamp production capacity, capacity expansion is fast. The company's old factory is gradually transforming into an LED factory, and its capacity-increasing capacity is amazing, in line with the industry standardization trend.
The company adopts the mode of order production and fast delivery. The products are rich in style and long in product chain, covering various fields such as light source, commercial photo, accessories and home. At the same time, the product update cycle is fast, effectively reducing the inventory pressure of the channel. Short-term trend of the industry.
Strong cost control ability, in line with the industry's parity trend, the company's industrial chain position is strong, effectively guaranteeing the supply and quality of core components, while the self-made link costs are low, cost control ability is strong: 1) strong production management, production efficiency and good The rate is high; 2) the R&D capability is strong, the differentiated structure greatly reduces the cost, and the patent layout: the company's product cover adopts the traditional glass tube, the cost is low, and other manufacturers use the higher cost plastic plus aluminum sheet. 3) Strong industrial chain status, rich suppliers and strong bargaining power: rich sources of chips, including Korea/Taiwan/Mainland; cooperation with major packaging plants, including National Star/Hongli/Ruifeng.
Based on the company's strong cost control capabilities, the company's LED lighting products have just become a price killer in the industry. The company's T8 fluorescent tubes, bulbs, ceiling lamps and other products have better performance and significantly lower prices than other brands of products, the product cost-effective advantage is recognized by the business. For the company's products are affected by the low price of some emerging LED lighting brands, more than half of the businesses believe that the impact is extremely limited.
Brand: high-profile brand awareness, terminal influence, LED lighting era traditional veteran has a considerable first-mover advantage: First, according to Internet research data, 92 merchants tend to choose to transform to the traditional brand products in the LED field; second, the terminal market It takes quite a while to accept a new brand. During this time, the traditional lighting mainstream enterprises can completely improve the market layout and consolidate the market share. Finally, the end consumers are currently blind to the consumption of LED products, as long as the price is not too outrageous, preferred Still a product with a certain brand awareness.
As a traditional domestic veteran, Foshan Lighting has two national well-known trademarks, FSL and Lijiang. The brand has strong strength and high terminal recognition. Stepping into the LED era, Foshan Lighting has teamed up with another well-known national brand, Shanghai Brand, on the basis of its high-profile popularity, and strengthened its brand promotion through multiple channels to consolidate its advantages.
Scale: Foshan Lighting is the Chinese light king in the era of traditional light source. The scale advantage is obvious. Foshan Lighting has obvious scale advantages. It can be regarded as the leading enterprise in the domestic lighting industry in terms of production, export, revenue, profit, cash and so on.
The company was first established in 1958. It is the largest incandescent lamp in China. The annual incandescent lamp shipments reached 500-600 million, accounting for more than 20% of the country. The company's 40 products are exported to more than 20 countries and regions such as Europe, America and Southeast Asia, and have a reputation as a Chinese lamp king in the international arena.
The company's operations are sound, its financial position is good, and it has a significant scale advantage. The gross profit margin has remained at around 30 for many years except for the 2008 financial crisis. At the same time, the company has strong profitability and high dividend yield. Over the past 20 years, the company has realized a net profit of 4.6 billion yuan and accumulated dividends of 3.3 billion yuan. It has the name of cash cows in the industry and even in the A-share market, giving investors a lucrative return on investment. .
Benefiting from the industry boom, the performance growth is clear. The LED lighting products are booming in domestic sales. The supply of various products is in short supply. The channel inventory is digested obviously, which drives the company's performance to rise rapidly. In addition, the company's performance is not exceeding expectations. On the one hand, the company will increase its efforts in 14 years. Exports, overseas OEM business started quickly, and on the other hand, the company is accelerating the deployment of more profitable lighting business.
LED domestic sales, driving the company's rapid growth in performance In the second half of 2013, the company began to fully develop LED lighting, first from the LED domestic sales business, positioning itself in the domestic market to replace the market. In 2013Q4, the LED demand of the company's own channel field is strong, and the inventory is obviously digested. Taking LED bulbs as an example, the total monthly output of 2013Q3 company news is 5 million, while the sales volume is only one super series, with monthly sales exceeding 2.5 million.
While other businesses remain stable, the rapid expansion of LED domestic sales business is expected to drive the company's performance to increase significantly; in terms of profitability, based on the increase in unit price of LED lighting products, the company's strong cost control capabilities and its own channel advantages, we believe that in the long run The gross profit margin of LED products will be improved compared with traditional lighting products, whether domestic or overseas.
Overseas OEM and lighting business is not expected to exceed expectations. The company's overseas business accounted for a relatively low proportion, only 26, a large room for growth. The company began to increase its efforts to export this year, and actively negotiated with international LED lighting giants. This year, overseas OEM LED products are expected to start quickly.
In addition, the company is gradually improving the product pattern of light source-based products in the past, and speeding up the distribution of more profitable lighting business. The company has set up a separate lighting division, which is expected to be effective this year.
Whether it is the overseas OEM or the lighting business, it is expected to inject new impetus into the company's future performance growth, and drive the company's performance to exceed expectations.
Sellers Union Group , https://www.sellersuniongroups.com