Since 2023, under the background that the downstream market demand is still recovering and the stock market competition is intensifying, the development of the consumer electronics industry has been challenged. However, judging from the mid-term performance, we can find that some companies still have certain risk resistance capabilities, and their development resilience is remarkable, and Skyworth is one of them.
Recently, Skyworth Group announced its mid-year report for the 2023 fiscal year. The financial report shows that under the synergistic effect of the business, the company's overall performance has maintained steady growth, especially the third growth curve has continued to exert strength, which has given good feedback to the market.
On the whole, since 2023, based on the guidance of the "dual carbon" green development strategy, Skyworth Group has "run wildly" on the new track, showing multiple possibilities. Then, in terms of new business, how did Skyworth Group realize the transformation from Chengfeng to Yufeng? In the face of future uncertainties, how will the certainty of performance growth be enhanced?
Riding on the trend, the new energy business continues to release strong momentum
Judging from the financial report data, in the first half of 2023, Skyworth Group's overall turnover was 32.3 billion yuan, a year-on-year increase of 33%, and its gross profit was 4.198 billion yuan, an increase of 8.2% over the same period last year.
(Data source: company financial report)
In terms of divisions, the integrated and optimized four major business segments of Skyworth Group include smart home appliance business, smart system technology business, new energy business, and modern service industry business. The diversified business layout has stabilized the company's development pace to a certain extent. Among them, the third growth curve, the new energy business, made a significant contribution to revenue growth.
(Data source: company financial report)
Specifically, the new energy business has gradually grown into the company's main source of income, accounting for 8.1% of total operating income in 2021 to 37.57% in the middle of 2023. In the first half of the year, the revenue was 12.134 billion yuan, a substantial increase of 188.2% year-on-year . In addition, during the reporting period, Skyworth Group's turnover in the Chinese mainland market was approximately 25.143 billion yuan, and the new energy business provided 48.2% of the boost.
The strong growth of this business sector is due to the great leap forward in the growth of related industries on the one hand, and the fact that the company has seized the opportunity to continuously expand the market, thus reaping good results.
In recent years, the scale of my country's photovoltaic industry has continued to expand. According to data from the National Energy Administration, in the first half of 2023, the country's new photovoltaic grid-connected capacity will be 78.42GW, a year-on-year increase of 154%. Among them, the new installed capacity of centralized photovoltaic power plants is 37.46GW, and the newly installed capacity of distributed photovoltaic power plants is 40.96GW.
In addition, since the fourth quarter of 2022, the prices of major raw materials such as silicon materials and silicon wafers have begun to fall due to sufficient production capacity. According to data from the Silicon Industry Branch of the China Nonferrous Metals Industry Association, the average price of domestic single crystal dense materials has dropped from a maximum of 240,100 yuan/ton in early 2023 to a minimum of 65,700 yuan/ton.
Under the good development trend of the industry, Skyworth Group actively explored the market. During the reporting period, more than 130,000 household photovoltaic power stations were newly added to the grid and connected to the grid for power generation, and more than 339,000 household photovoltaic power stations were built and operated on the grid. One of the industry leaders.
It is worth noting that the large-scale development of the household photovoltaic track has also spawned many strong competitors, such as Chint Aneng, Trina Fujia, Jolywood and other companies have occupied a certain market share. In addition, with the central enterprises , The entry of state-owned enterprises has changed the competitive landscape of the household photovoltaic track. In this case, what does Skyworth Group rely on to lead in this track?
Product technology and channel management are key. Compared with industrial and commercial distributed photovoltaics, due to the characteristics of users, there are pain points in the field of household photovoltaics, such as small and scattered, and inconsistent installation. Products with multi-scenario photovoltaic application requirements such as sun sheds will have more advantages.
Specifically, in the field of household photovoltaics, Skyworth Group continues to upgrade products based on market orientation and user needs, and the customization features of products are more prominent. According to the financial report, during the reporting period, Skyworth Group's flagship product "Xiaoyang Building" was a high-quality household building-integrated photovoltaic (BIPV) power station product specially developed by it, which cleverly combines photovoltaic panels with building roofs and is suitable for self-built House types such as villas and cast-in-place flat roofs are favored by the market due to their high precision and strong safety.
In terms of channel management, Skyworth Group's channel model is vertical management to county and town level agents, without intermediate levels, and channel efficiency has obvious advantages; Reduce the operating pressure of enterprises. The above aspects have built Skyworth Group's industry barriers in the household photovoltaic track.
Overall, the high-quality development of the new energy business has consolidated the growth path of Skyworth Group. However, the smart home appliance business is still the basic business of the company, and it is also the main reliance of the company's future operations. The financial report shows that as of the middle of 2023, the company's smart home appliance business turnover was 14.164 billion yuan, a year-on-year increase of 9%. 89%, 32.8%, still maintained a relatively strong development.
In addition, it is understood that the smart home appliance business is a merger of the original multimedia business and smart electrical appliance business, mainly including smart TV systems, smart white home appliances, other smart appliances, and the Internet connection service of the Coocaa system. To a certain extent, this also reflects that promoting the collaboration of all categories of smart home appliances is an important item for the future development of Skyworth Group.
To realize the collaboration of all categories of smart home appliances, what is the next step for Skyworth Group?
In fact, promoting the collaboration of all categories of smart home appliances is an important part of the blueprint of "smart home building smart life".
Driven by emerging technologies and driven by consumer demand, home appliance companies are constantly launching various smart products in an attempt to revolutionize the industry and break through the invisible barriers between supply and demand. However, trying to use a single smart product to open the door to smart homes is actually just a shallow transformation and upgrading. Although it can arouse consumers' curiosity and novelty, as time goes by, more and more similar products are emerging in the market. Products, users' perception of the smart concept of related products is weakening, and it is impossible for the brand to cultivate long-term user stickiness and realize the vision of smart home.
In addition, the current home appliance companies are also "boating" in the Red Sea. The "2023 Semi-Annual Report on China's Household Appliance Industry" data shows that in the first half of 2023, the export scale of the household appliance industry was 296.7 billion yuan, a year-on-year increase of 5.2%, and the domestic market sales scale was 371.1 billion yuan, a year-on-year increase of 2.8%. Specific to subdivided categories, the stock characteristics are more obvious. According to public information, in the first half of 2023, the retail sales of color TV categories reached 44.5 billion yuan, a year-on-year decrease of 7.8%.
In this case, breaking the isolated state of product layout and promoting the coordinated development of products is of great significance for enterprises to find more increments in the stock market. Therefore, many companies such as Midea and Haier are constantly upgrading and breaking through in the direction of scenario, ecology, and systemization, and the structural adjustment of Skyworth's smart home appliance business is also in response to the situation.
Based on the growth point of smart home, how can home appliance companies amplify their own advantages and deeply participate in the wave of the times? Judging from the exploration of Skyworth Group, it may be possible to carry out in-depth grasp.
In fact, in the synergy stage of all-category equipment, higher requirements are placed on the ability of enterprises to create single products. In other words, if single products can reach the "extreme", the synergy effect will be more and more powerful. In this process, it is undoubtedly the key to grasp the needs of users and strengthen the innovation of single products.
At present, consumer groups have higher requirements for the appearance and performance of products. For example, as far as the color TV category is concerned, thinning and scene-based TVs have become new drivers of TV growth. According to research data from Aoweiyun.com, 43.9% of users prefer thin and light designs, and 38% of users prefer artistic shells and diverse appearance colors.
In response to consumer preferences, a new direction has been opened up in the TV field at this stage-wallpaper TV, and Skyworth has become a leader in the field of wallpaper TV other than Samsung by virtue of its in-depth insight into market demand. It is reported that during the reporting period, Skyworth Group launched the A7D/A7D Pro series of new products that integrate technology and art. Compared with traditional wall-mounted TVs, the thickness of the wall-mounted TV is less than 4cm and the design of the ever-changing art screen realizes the integration of hardware products and home furnishing. The environment is integrated, which is why it is loved by consumers. Data from JD.com 618 shows that after a good start in 4 hours, the turnover of art TVs exceeded 10 million, and the Skyworth wallpaper TV series ranked first in the sales list of art TVs.
The series connection between single products requires technology empowerment. Skyworth's technology research and development idea is "5G+AI+terminal", which means that the company will continue to use emerging technologies to empower hardware products, and realize the system from the inside to the outside. management. In this regard, when talking about the application of emerging technologies, Lin Jin, chairman of the board of directors of Skyworth Group, also made a statement: "We will pay attention to how to effectively integrate artificial intelligence with products, such as making products fully integrated without increasing too much cost. Carry out artificial intelligence upgrades." According to the financial report, the group will continue to increase investment in research and development of VR/MR and other virtual reality technologies to accelerate digital transformation.
It is worth mentioning that Skyworth's ecological territory is far larger than imagined. From the perspective of business structure, smart home appliances are only a part of Skyworth’s ecological landscape, and the development of any sector of automobiles, home appliances, and photovoltaics will have a driving effect. For example, the current strong development of new energy business will help enhance user stickiness. Therefore, Skyworth has opened up sales channels for diversified products such as TVs, refrigerators, washing machines, and air conditioners, which may increase its overall profitability.
On the whole, under the guidance of the intelligent strategy, Skyworth's ambition is not limited to the continuous improvement of a certain business segment, but also lies in the resource integration and synergy of multiple business segments, which points to "providing users with a complete set of zero-carbon, Smart life solutions" development goals. Just as Ma Long, general manager of Skyworth Photovoltaics, said: "Skyworth's early work is smart home appliances in the house, from the power generation side to the power consumption side and the travel side, to create zero-carbon smart life solutions for ordinary people. In this process, including cars, Home appliances and photovoltaics, we will cooperate.” It can be seen that this is quite different from the development path of most home appliance companies in the market, and the huge business layout may enable Skyworth to tap greater commercial value.
Author: Helen
Source: Hong Kong Stock Research Institute