Hisense Electric: LED LCD TV revenue will reach 9 billion in 2011

Hisense Electric (600060.SH), a member of the Office of the Treasury secretary who asked not to be named, told reporters on the phone that the company will increase the sales of LED LCD TVs to 30% in 2011.

“In the first three quarters of the company, the total sales of TVs were over 3.5 million units. In 2010, LED LCD TVs accounted for 20% of the company’s sales,” said the staff member. “The introduction of the 2011 energy-saving subsidies will further promote the sales of LED TVs.”

Yu Haitao, director of the news and information office of Hisense Electric Appliance Marketing Department, told the reporter on the phone that the latest statistical data of Zhongyekang market research company showed that the average price of LED LCD TVs in October was 6,500 yuan/set, and the LED LCD TV line of Hisense Electric was the product line. From 19 inches to 55 inches, the price ranges from 1989 yuan to 12,809 yuan.

Fang Xin, an analyst with Guotai Junan, commented on the reporter's comment on the phone. “According to this calculation, the same growth rate of the previous three quarters reached 4.67 million units. LED accounted for 20% of the 930,000 units and the revenue reached 6 billion yuan. However, in our tracking, not only this number, in September, Hisense LED's shipments accounted for 50% of the company's TV shipments, so LED's revenue was underestimated in 2010. Even though total sales did not increase in 2011, sales 30% is 1.4 million units. The price of LED LCD TVs may drop, with an initial estimate of 9 billion yuan in revenue."

Yu Haitao also stated that LED LCD TVs can save 30-40% energy compared with CCFL TVs. The energy efficiency standards to be implemented will become an indicator for consumers to purchase color TVs. LED TVs with advantages of environmental protection, energy saving, ultra-thin, long life, and wide color gamut will usher in accelerated growth.

The "Flat-panel TV Efficiency Limit and Energy Efficiency Rating" formally implemented on December 1, 2010 will divide flat-panel TVs into three levels, of which level 3 is entry level, and level 1 and level 2 are energy-efficient, and LCD TVs are three. The energy efficiency indices for the grades are 1.4, 1.0 and 0.6 respectively. Energy efficiency standards also regulate the standby power consumption of flat-panel TVs. At the same time, the "Regulations for the Labeling of Energy Efficiency of Flat-panel Televisions" will be implemented starting March 1, 2011.

Hisense achieved revenue of 15.3 billion yuan in the first three quarters of the year, an increase of 18% over the same period last year; and a net profit of 460 million yuan, a substantial increase of 48% year-on-year.

According to statistics from Ovid Consulting, China’s total sales of color TVs reached 28.49 million units in the first three quarters of 2010, an increase of 19% year-on-year; of which, LCD televisions had accumulated retail sales of 23.26 million units, an increase of 50% year-on-year. “Hisense LCD TVs accounted for 98% of total shipments,” said the above-mentioned board secretary staff.

According to the latest statistics from Zhongkang Market Research Company, as of now, Hisense LED LCD TVs account for over 30% of China's LED LCD TV market, and the market share of Hisense LCD TVs has been the No. 1 position in the Chinese flat-panel TV market for seven consecutive years.