Panasonic Corp. (PC) released its new management policy for fiscal 2011, ending March 31, 2011. Under the new policy, the company will integrate SANYO Electric Co., Ltd. into the new Panasonic Group. Panasonic will benefit from SANYO’s acquisition as the latter is a key player in the solar cells and rechargeable batteries markets and has strong businesses in industrial equipment and devices.
The acquisition will leverage Panasonic’s group synergies. Panasonic will expand its solar cell business in combination with SANYO’s solar technology, expertise in building products/electrical construction materials and worldwide sales channels.
Panasonic will invest approximately 100 billion yen from fiscal 2011 to 2016 to increase production of SANYO’s “HIT” solar cells. This should enable Panasonic to acquire a leading market position in Japan in fiscal 2013 and become one of the top three companies in the world by fiscal 2016.
In the lithium-ion rechargeable battery business, Panasonic aims at achieving sales exceeding one trillion yen, resulting in a global market share of over 40% in fiscal 2016. New products incorporating both SANYO and Panasonic expertise in batteries is expected to help attain these targets.
Panasonic’s new mid-term management plan is expected to help it become the No.1 Green Innovation Company in the Electronics Industry towards 2018. In fiscal 2013, under the new management plan, Panasonic will drive growth by focusing its resources on six key business areas, which include energy systems, heating/refrigeration/air conditioning, network AV, security, healthcare and LED. In the LED business, Panasonic will introduce LED-backlight LCD TVs and lighting related products.
The company will also introduce 50-inch and larger Full HD 3D plasma TVs this spring to explore new markets. Of the LCD TVs, LED-backlight LCD TVs will account for 30% of Panasonic’s total number of LCD TVs in fiscal 2011. To expand its international presence, Panasonic will target emerging countries where consumers are using CRT TVs and the United States where flat-panel TVs are replacing projection TVs.
While the company intends to ensure smooth operations of Panasonic Plasma Display’s fifth plant in Amagasaki City and IPS Alpha plant in Himeji City in Hyogo Prefecture, it will shift module production and TV assembly work overseas.
To grow the security business, System Networks Company established on Jan. 1, 2010, will play a key role. The new company will strengthen Panasonic’s solutions business and offer comprehensive security solutions including construction and services.
Panasonic also announced an increase in profitability while reforming business structures and models flexibly. We remain positive on Panasonic’s new initiatives and expect the company to grow strongly, moving forward.
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