Home appliance "Love" bank success or not hard to say

Suning, the United States, gree and other household appliances giants have been planning to dabble in the banking industry, China's household appliances "combination of production and integration" trend looms.

Policy liberalization and higher profitability of the banking industry is the "bait" for the household appliance giant to "grab" the banking cake, while its huge cash flow and upstream and downstream financing demand are the backbone of their daring to "cross the boundary".

With the financial concept of household appliances stocks rose recently, whether the bank plate can be taken down or not, and, even if the license, home appliances giants in the financial business can obtain new core competitiveness, also need to observe.

Home appliance Industry "love on" bank

Following the Suningyun (002024.SZ) August 23 Notice has submitted to the relevant departments of the initial bank to set up a plan of intent, the United States Group (000333.SZ) to consider the application of private banking licences in the Mid-Autumn Festival before the exposure, gree electrical appliances (000651.SZ) Also on September 25, admitted to the rumors of the banking business-Gree Holdings, the Gree Group finance Company and Zhuhai, the town bank shareholders had a preliminary contact. At present, the two sides have not reached any intention to cooperate, the specific mode of cooperation is still uncertain, followed by greater uncertainty.

The head of the investment banking business of a large household appliance group said to the reporter of the first financial daily that China's household electrical appliance industry has developed over the past twenty or thirty years and the cash flow of the leading enterprises is relatively large. and the financial industry in China regulated, the level of profit than the home appliance industry a lot, although the future interest will be market-based, but the short-term return is higher, far more than the home appliance industry. Financial industry average annual return on investment of more than 20%, home appliances listed companies return on investment generally only 6%. Moreover, the combination of home appliances and the financial industry, may produce a new model, to the home appliance enterprises in the future business development brings convenience, just now the government to the Enterprise investment banking opened a hole.

Regardless of gree, the United States or Suning, annual sales revenue has reached hundreds of billions of scale. In the first half of 2013, the net amount of the cash flow generated by Gree electric appliances was as high as 15.75 billion yuan; The net amount of cash flow of the operating activities of Midea electric appliance (now absorbed and merged by the Beauty group) amounted to 4.66 billion yuan, and the net amount of cash flow of Suningyun business activities amounted to 2.7 billion yuan But at the same time, sales revenue and profit growth for the big three appliance giants has slowed markedly in recent years, and new "cheese" needs to be found.

"The financial field because of monopoly, the level of profit is very high, did not realize the function of supporting the development of the industry, the state wants private enterprises to participate, so that the bank's more competitive, higher market level, innovation and more active, stimulate economic development." This is a great opportunity for private enterprises to understand and master financial knowledge and support industrial development. A senior household appliance business executive, who declined to be named, said.

Moreover, regardless of the circulation or the manufacture, the home appliance leading enterprise all has the common characteristic-the scale is big, the intermediation ability is strong, has the very good financial, the Fund Management Foundation. The above household appliances business executives then said, Gree, the United States, Suning's settlement amount is big, the industrial chain is long, the internal industrial chain financing opportunity itself to be fully excavated.

"Combination of production and integration" heating up

In fact, Suning, Gree, the United States have a "type of finance" gene. Gree, the United States is China's leading air-conditioning industry, both accounted for the domestic air-conditioning market of half. And they operate on the air-conditioning, are dealers off the off-season, the factory with the money to buy raw materials, production air-conditioning, peak season again to the dealer. And as a retail giant suning, in the factory supply, product sales and return money between, generally have more than one months time difference, the account will form the deposit of funds.

Suning has previously set up a microfinance company, insurance sales company, and hands "easy pay" online payment license; Gree Electric is absolutely holding the Gree Group finance company; The United States group in addition to have financial companies, microfinance companies, but also participate in the Shunde agricultural Business Bank.

The head of the investment banking business of the large household appliance group said that once a bank licence was obtained, Gree and the U.S. dealers and suppliers would receive greater support. Because they are familiar with the creditworthiness of their partners, they have a relatively low risk of upstream and downstream SME loans. Moreover, different financial services products can be generated. The capital turnover in the industrial chain is six months and a year ago, and can be shortened to one months after opening the bank.

An analyst is optimistic that home appliance companies to open banks will help improve their capital efficiency and increase profits. Upstream and downstream SMEs, loans more difficult, access to banking licences of home appliances enterprises can better help them to finance. Moreover, GE, Samsung, Sony (21.3, 0.19, 0.9%) and other European, Japanese and Korean giants have a "combination of production and integration" precedent.

The above household appliances Enterprise senior disclosed, once obtains the bank licence, for the upstream and downstream SME financing is only "the foundation". If it is limited to its own industrial chain, banking will be difficult to do big.

"The future finance will be a link in the enterprise industry chain, not only a diversification step." "Peng, vice president of the Yi Kang, to Su Ning as an example, if the hands of the precipitation of funds to activate, investment and financing, lending, Su Ning will be able to provide funds for other industrial development pool." Then, Su ning on financial services, sales services, logistics services and other services in a centralized. If it succeeds, it will be "trust".

However, Lu Lei, dean of the Guangdong Institute of Finance, warned that Suning, as a retail enterprise, had some advantages in finance, but the manufacturing industry did not have much success stories. In addition, if the private banks do not have effective rules, it is easy to accept the risk of acceptance. Prior to that, DeLong to do banks, insurance, trusts, mainly to serve the self financing, is tantamount to find a money for their own bags, and then collapsed; Minsheng Bank is doing well because of new hope and other investors to set up a "firewall" between their business and the banks.

In fact, in addition to Su Ning, Gree, the United States, another billion enterprises Haier also has a bank dream, has held or shares in Qingdao Bank, Changjiang Securities, Haier New York Life and many other financial enterprises. And Tcl, Hisense, Changhong and other household appliances giants have also set up a financial company. The above high level of household electrical appliances Enterprises believe that the combination of production and integration will become a new trend of household appliances industry, industry and finance mutual support, to further expand the industry, open up overseas markets, and better resist risk.