Liad is a phenomenal enterprise that earns money in excess industries

In the LED segment, the GEM and even the entire A-share market, Liard can be regarded as a phenomenon-level company.

How long does it take to redefine the development path of an industry?

Liard's answer is - 20 years.

The company, founded in 1995, has rewritten the global landscape of the LED industry. Its LED small-pitch TV has reached the top in the world in terms of technical capabilities, scale and market share. The small-pitch LED display refers to the LED display with LED dot spacing below P2.5, which is greatly improved compared with the traditional LED display resolution.

In the LED segment, the GEM and even the entire A-share market, Liard can be regarded as a phenomenon-level company.

Behind the skyrocketing performance

Compared with other GEM companies, Liard's share price has shown relatively strong resilience in the context of a sharp drop in the capital market, which is not related to its fundamentals.

According to the financial report data, the company's revenue increased nearly five times in the five years from 2009 to 2014, the average annual revenue increased by more than 30%, and the net profit increased by 50% annually. In the first half of this year, the company achieved operating income of 600 million yuan, a year-on-year increase of 45.8%; now the net profit attributable to the parent company is 81 million yuan, an increase of 50.67%.

The two-wheel strategy of innovation drive and extension development is indispensable. "This is the inevitable development model. We have proposed a five-year multiplication plan, which means that profits are doubled every year." Li Jun, chairman of Liard, analyzed the "British Talents" reporter, "Product and market innovation can help the main business achieve 50%." Growth, while investment M&A can contribute another 50% of growth, adding up to 100%."

According to the data, Liard has acquired 5 domestic companies including Internet Yida, Jinda Lighting, Lifeng Culture, Jinlixiang and Pineng Optoelectronics. In the international market, the company has signed an agreement to acquire a 100% stake in PLANAR, a NASDAQ listed company in the United States, and a $121 million investment in Indian LED display manufacturer MIC.

Frequent acquisitions brought a rapid increase in profits for Liard. Take Jinda Lighting as an example. “The annual gambling profit signed by Jinda Lighting was 29.8 million, but by the end of September, it will reach a profit of 40 to 50 million, exceeding the target. This is the synergy after the acquisition. Achieved rapid development. According to Li Jun, the profit contribution of PLANAR in the United States can reach 100 million in 2016.

"Until next year, the company's revenue after the consolidated statement will reach 5 billion." The original technical threshold and frequent capital mergers and acquisitions have made Li Jun have the ambition to double profits. In May of this year, the company jointly launched the employee stock ownership plan, which showed the confidence of the company's management in the future development.

Breaking the LED deadlock

Affected by overcapacity, the traditional LED industry has grown slowly, but the small gap between LEDs has rewritten the development path of this industry. Senior analyst Li Sheng said that the current display market is very mature and fiercely competitive. In the first half of the year, the traditional display business has basically no growth rate, but the small spacing is the biggest highlight.

The outbreak of LED small-pitch products has greatly increased the performance of A-share listed companies such as Zhouming Technology, Alto Electronics and Lianjian Optoelectronics.

Although the competitors can copy the products developed by the company in a short period of time, "I catch up with my old things, my new things come out, (competitors) are always behind me, I have always led." Germany applied for nearly 80 patents around the small spacing of LEDs. Li Jun said that due to the high technical threshold of LED small-pitch TV, after reaching a certain scale, the products of different companies will have a big gap in stability and quality.

Liard products can be seen in the "9.3 Parade", the NASDAQ exchange in Houston, the Toyota Center in Houston, and the German Parliament. At present, Liard's overseas business accounts for 24%. According to Li Jun's plan, this figure will increase to 50% next year.

Continued expansion into the international market is also one of Liard's development strategies. Year-to-date projects such as the Russian Victory Day Celebration, Russian Theme Park, Finnish TV, Thai TV, American Super Bowl, and US ESPN have been signed. "The acquisition of PLANAR in the United States is to value its global brand awareness, nearly 2,000 sales channels and service systems." Li Jun said.

Cultural Performing Arts 4.0

"Through the five-year profit multiplication plan, the company achieved 1 billion profit in 2017, the order exceeded 10 billion mark, and the market value exceeded 40 billion." After 20 years of establishment, Li Jun believes that the development of Liard will enter the fast lane.

In 2014, Liard developed a “four-wheel drive” strategy, which is driven by the four business segments of LED small-pitch TV, LED intelligent lighting, LED display and LED culture education media.

In terms of business model innovation, after the acquisition of Lifeng Culture and Jin Lixiang, Liard began to arrange cultural tourism performances. With the synergy after the acquisition, PPP business will be carried out in the field of cultural tourism performance.

Prior to this, Liard and Guokai Finance have established a cultural tourism industrial investment company. It is estimated that the total investment will be 10 billion yuan, and the project will be carried out in the PPP mode.

In Li Jun's view, sitting in the theater to watch the show, this is the 1.0 version of the cultural performing arts. "2.0 is the impression series, such as Zhang Yimou's "Impression of Hainan Island". And "Seeing Pingyao" is a few different performance points, people are moving, we call it version 3.0." According to his plan, Liard will It is a version 4.0 of cultural performing arts. It combines modern sound and optoelectronic technology to explore the cultural connotation of tourist attractions as much as possible, and combines them with people's audio-visual feelings.

As China's economy slows down, traditional industry growth has gradually slowed down, investment and exports have declined significantly, and only consumption is on the rise. According to Li Jun's judgment, cultural tourism in consumption will become the most promising industry in the future.

"Cultural tourism will be the top priority of Liard's next development." According to Li Jun, the company has been researching in various places. The Moutai wine culture tourism project in Guizhou has begun construction, integrating Moutai culture into vision, hearing, and Taste, 3D technology, etc., to create a new version of the cultural performance 4.0, "the first performance will begin next year."

Through the "PPP model" of cultural tourism performance, the four major sectors of display, small-pitch TV, lighting and cultural and sports education media will be integrated in the field of cultural tourism, which will effectively solve the problem of coordinated development of Liard and its acquired enterprises.

The "four-wheel drive" wheels have been basically built. With the continuous improvement of profitability, Li Jun believes that the company's price-earnings ratio will continue to be in a very considerable investment range: "The current market value of more than 13 billion, and this year's profit is expected to reach more than 300 million yuan, the price-earnings ratio is only 40 times. Next year's profit Once, the price-earnings ratio fell to more than 20 times."

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