[Guide] While the development of related businesses is blocked and it is difficult to pay back, small-pitch LED screen companies have to face the challenge of relatively "rigid" expenditure. For example, Unilumin pointed out in the report that during the epidemic prevention and control period, the company actively strengthened online marketing. At the same time, R&D, manpower, and offline marketing expenses were relatively rigid, and the increase in expenditure had a certain impact on profits.
In a blink of an eye, 2020 has passed halfway, fighting the coronavirus epidemic and economic restart are undoubtedly the most important keywords in the first half of the year. For the large-screen commercial display industry, the impact of the epidemic is obvious. Standing at the starting point of the economic restart in the second half of the year, the industry is full of expectations for the restart of demand and seizing the opportunity in the second half to reduce the impact of the epidemic, especially for small-pitch LEDs. As far as display companies are concerned, whether they can return to the track of rapid development is in one move. Looking back at the first half of 2020, crisis and opportunity coexist.
Danger
A few days ago, Unilumin Technology released a performance forecast for the first half of 2020, pointing out that in the first half of 2020, due to factors such as the coronavirus epidemic, the company's overseas order delivery has been postponed; some domestic orders are in the project start-up stage and cannot be reported as scheduled due to factors such as epidemic prevention. The installation, commissioning and acceptance were completed during the period, and revenue recognition was affected to a certain extent. In addition, also affected by the epidemic, the government's landscape lighting project in the first half of the year was basically in the early stage of start-up, and the company's landscape lighting project business development and payment collection were greatly affected.
While the development of related businesses is blocked and it is difficult to pay back, small-pitch LED screen companies have to face the challenge of relatively "rigid" expenditures. For example, Unilumin pointed out in the report that during the epidemic prevention and control period, the company actively strengthened online marketing. At the same time, R&D, manpower, and offline marketing expenses were relatively rigid, and the increase in expenditure had a certain impact on profits.
Under the combined influence of many factors, Unilumin expects that its performance in the first half of the year will drop by 65%-75% from the same period last year. In fact, Unilumin’s situation is not unique. It is very representative for the small-pitch LED industry in the first half of the year, and it is also a common business problem faced by the industry. The above-mentioned many factors constituted the "dangerous" factors in the first half of the year.
Opportunity
But at the same time, we must also realize that crises and opportunities often coexist. On the one hand, after the epidemic prevention and control have achieved results, especially in the domestic market, most areas are already at low risk and related projects have been restarted. It is expected that the project payment will be smoothly advanced in the second half of the year. Not only that, the epidemic prevention and control process has also spawned many new business opportunities. For example, non-contact temperature measurement has spawned many applications of infrared temperature measurement displays. In the post-epidemic period, including new infrastructure, sound public health systems, etc. The project will also bring new opportunities to display equipment.
Not only that, the months-long home life has also fostered new consumption habits in the home economy and online consumption, which will also stimulate the strong demand for large-screen displays in the home sector in the second half of the year and in the future. For example, LED home theaters, small-pitch LED TVs, etc., with the application of related products, are also expected to play a leading role in the performance of related companies in the second half of the year.
Looking back at the first half of 2020, crises and opportunities coexist, and crises are greater than opportunities; while looking forward to the second half of the year, crises and opportunities will also coexist, but the difference is that there are more opportunities.
Post time: Aug-28-2020