subject: Sva Bidding War: The Results Or Extraordinary Reason - Sva, Boe, Mid - Household Appliances [print this page] < BR> final bid may be contrary to common sense, or three, the two parties to participate in it is not impossible, after all, is still 2.5 billion bid for a very attractive price, particularly in the current panel prices rise, companies start making profits.
The brink of bankruptcy in the Radio and Television
Electronic
(600,602, stock it) now as various competition for the "meat and potatoes."
, Mid-A (000050),
BOE
A (000725) yesterday (August 5, 2009) also issued notice that, due to recent media reports, mid-A, BOE A negotiation Shanghai SVA Electron Co., Ltd. (hereinafter "
SVA
", 600,602) fifth-generation TFT-LCD production line, will the company starting from 5 August to suspend the verification related issues, and published in the August 7 announcement resume trading.
In fact, in addition to the two listed companies, has also Rainbow shares (600,707, stock it) (600,707) and private enterprises in Wuhan constant new technology industry group (hereinafter referred to as "the constant group (600,252, stock it) ") joined the bidding war for the group.
Difficult to judge as the final plan, we focus on analysis of the impact of radio and television analysis on each company, because it involves the two market-related shares. We recommend that investors can buy, mid-and BOE, waiting for bid results, the proportion of radicals, mid can buy more, or all.
Thrust of local government
According to our understanding of the situation, SVA LCD 5 on behalf of the line around the profits, losses from 2007 has gone through consolidation, acquisition of private placement, finally, to sell shares to a third party process. From SVA, its original advantages of early investment and domestic industry has the effect of vertical integration, because the 5th generation line can cut small size TV panels.
However, with large production and generation of line
LCD TV
Large-size trend, 5 on behalf of the line cutting in the field has changed greatly, from the initial TV panels to monitor panel was then notebook panel, since last year, is gradually infiltrated into the area of Internet the size,
Digital
Photo Frame or even small areas of mobile phone panels. In the absence of scale and industry consolidation to failure (long-term procurement reports said it was the Japanese side
Monopoly
) Of the case, the 5th generation line SVA LCD profitability compared to BOE, IVO and other necessary things became worse, and the company's management weaknesses and long-term form a vicious circle.
We judge, not just the sale of shares of enterprises quite upset, but the local LCD industry from the current situation and future of the project a better way to consider the consolidation and restructuring of the industry because of the inevitable, but also in Shanghai the government's recent focus area of the display is clearly more needs to be reorganized to do bigger and stronger.
25 billion attractive "cake"
Shares from the Rainbow Project to give up Zhangjiagang six-generation line of view, its basic line in the broadcasting 5 bid on behalf of lost competitiveness.
From, mid, BOE, in constant terms three groups, the local government should be tended to, mid, because the relationship between Shanghai Tianma, Shanghai obviously more willing to allow local enterprises to integration.
In Beijing, Shanghai,
Guangdong
Competition in the domestic LCD industry base in the background, the BOE is very difficult obviously, unless a higher level of decision-making come forward. As for the constant group, since no
LCD panel
Production experience, coupled with its private ownership, its commitment to the Shanghai area 8 on behalf of the production line will we think that there is no practical significance. On the one hand a huge investment in the 8th generation line the other hand, the unprecedented technical difficulties, the Shanghai government would not understand this, Nong Buhao equivalent to local governments and banks attracted another burden?? On radio and television play 5 on behalf of the line Shangqie not play turn, the current state of play in Group 8 on behalf of the line of constant risk even imagine.
, Of course, the final bid may be beyond common sense, or three, the two parties to participate in it is not impossible, after all, 2.5 billion bid price or a very attractive, particularly in the current panel prices rebound business start making profits.
