Rainbow shares transformation glass substrate reshaping oligopoly pattern

After 5 years of independent research and development, Rainbow shares the first fifth generation glass substrate production line in Xianyang official operation, this is the first self-developed glass substrate production line. and Zhangjiagang, Hefei and other glass substrate production line is about to be completed, which means that the rainbow shares completed from the traditional CRT glass shell manufacturing, into the high technical barriers of the production sequence, before this global market by Corning, Electric nitrate and other 4 foreign enterprises monopolized.　　Market participants pointed out that the current glass substrate is still in the buyer's market, into the industry also means to enter a high profit industry.　　With 3.5 billion yuan to collect funds to account, Rainbow shares of the two-phase glass substrate project to accelerate, Rainbow Hao speech to occupy the domestic glass substrate industry half. Rainbow shares in the capital market are also sought after, from the initial directional additional price of 6.6 yuan bottom line, by the organization to 11.25 Yuan successfully issued.　　Shares in the Rainbow shares have been climbed since the announcement of a targeted issuance plan last September, up more than 125%. Into the oligopoly field glass substrate is one of the key basic materials of flat panel display industry.　　Glass substrates accounted for 17%-21% of the production cost of LCD panels, the performance, quality and price of liquid crystal display depends on the glass substrate, but the glass substrate industry has long been monopolized by the US Corning and Japan's electric nitrate, Asahi, etc. Shang, chairman of Rainbow Shares, assumes a 50% share of the LCD glass substrate industry.　　This will undoubtedly break the market oligopoly of 4 enterprises such as Corning, Electric nitrate and Asahi. "For companies like Corning, the glass substrates of rainbow shares have a price advantage."　　"Shang quite confident. Shang Introduction, the glass substrate two-phase project completed, will achieve large-scale production, the cost of products will be further reduced. He thinks the cost of the rainbow shares is lower than that of Corning companies, while the main production bases of Corning companies are in Taiwan, Korea and other locations, with higher transport costs.　　In contrast, Rainbow shares in the procurement of raw materials and domestic equipment can reduce costs. However, Shang does not intend to play a price war, only that it will be priced according to market demand.　　In this respect, the industry pointed out that the glass substrate is currently the buyer's market, rainbow shares of glass substrate prices, even if not less than the industry level, can also access the market, not to mention the current Corning companies have shifted their focus to more than 7 generations of production lines. In the face of the involvement of Rainbow shares, the industry is worried that the giants such as Corning to strengthen the market position, the 5, 6 generation line technology to China a large shift to crowd out the rainbow shares, so that its step CRT technology followed. In this respect, Rainbow shares Dong Dragon said: "Corning and other companies to the domestic transfer of 5, 6 generation line is not very likely, if the technology transfer, we need to transfer the core equipment, technicians and so on to China." and foreign technology to enter more conducive to the domestic market competition, but also more conducive to the improvement of rainbow technology, which is foreign enterprises so do not want to see, it is so many years foreign enterprises to the countryOne of the reasons for the technical blockade of the inner glass substrate production.　　"Industry analysis, although a short period of initial expansion of the Rainbow shares can not compete with the mature Corning and other companies, but also in the buyer's market glass substrate market, 5 glass substrate enterprises may form a harmonious coexistence of the situation, maintain the maximization of profits."　　Results are expected to surge recently, a number of institutions on the Rainbow shares of research reports, all focus on the glass substrate project, have given the rainbow shares to "buy-A", "strongly recommended", "maintain overweight" ratings. High ratings mean high expectations. Rainbow shares after several times of technical transformation, the current company production line of glass substrate yield rate has stabilized at about 70%, the highest peak is 90%, and as long as the yield of good products in 40% can achieve revenue balance point.　　It is understood that this is comparable to the good quality of Corning, Corning in the last two years, the net sales rate of about 50%.　　The Northeast Securities Research Report also pointed out that the rainbow shares of the glass substrate project in 2010, 2011 and 2012, respectively, to achieve operating income of 130 million yuan, 1.82 billion yuan and 2.52 billion yuan, to achieve net profit of 50 million yuan, 710 million yuan, 950 million yuan. With 3.5 billion of funds raised to account, Rainbow shares were able to expand the production scale of glass substrates. Rainbow shares Dong Dragon said: "This year September to next March, 13 production lines will be intensive ignition."　　"It is understood that from the ignition to the production generally takes 2-6 months."　　Dragon Introduction, the company is currently building factories, installation and commissioning equipment, is expected to Xianyang 5 production lines will be in May 2011 all Tatsu Production, Hefei 6 production lines will be in July 2011 all Tatsu production, Zhangjiagang 6 growth line will be in 2011 all Tatsu production. Data show that 4 glass substrate production line can supply a panel production line. At present, the demand for glass substrates in mainland China and Taiwan is about 24 million, while the Rainbow shares the first 5 generation line design capacity of 520,000 pieces per year, only to meet the above 2% of the needs of the region. According to the data of Sadie Consultant, as of 2009, Beijing Oriental, SVA, Dragon photoelectric and other enterprises investment 5, 6 generation line as many as 5.　　Therefore, market people expect that the current glass substrate industry buyer market status, will continue for a long time. Aiming at more than 8 generations of production lines now, the enthusiasm of the panel industry investment in the 8 generation of production lines above the spread of Beijing-Orient, TCL, Kunshan Long Fei three 8.5 generation line has been approved. At the same time, 8.5 generation line production of products, you can cut 4 pieces of 5 generation line of glass products. However, investment is only about 30% higher than the 5 generation line.　　So the conversion, 8.5 generation line profit is more than 5, 6 generation line much higher. The industry is concerned that the current rainbow shares investment in the 13 production lines are arranged in 5, 6 generation production lines, can not adapt to downstream development. In this regard, dragon that the current 5, 6 generation line production space is large enough to support the development of Rainbow Shares in recent years, the industry also pointed out that the rainbow stock line input productionThe line will not be obsolete for at least 5 years. Company Chairman Shang More clearly that the future of Rainbow shares not only do LCD glass substrate followers, but hope to master key technology, leading the industry's development direction.　　He revealed that the company is gradually developing 8.5 generation lines, and in the preparation of 10-generation product lines, hoping to eventually build more than 15 8.5 generation production lines. 8.5 Generation line can be built, technology is the key.　　According to the technical staff of Rainbow shares, 8.5 generations of products in the raw material formula, production technology, and 5, 6 generation line of the product difference is not large, but because of product size, in product molding, good product rate of the technology is still to conquer the focus. Industry insiders also believe that if the rainbow shares to build more than 10 8.5-generation glass base plate line, the amount of investment will reach nearly tens of billions of dollars. But as a new entrants to the glass substrate industry, the company is currently in a period of expansion, and there is not much accumulation of funds. How to solve the market demand for a more extensive 8.5 generation line of construction funds, is the next issue of Rainbow shares can not be avoided.