Taiwan passive component Ergehua Xinke released optimistic market information yesterday (27th), optimistic that the accumulated ceramic capacitor (MLCC) will be in short supply by 2020, and even the supply and demand gap will expand in 2020. In response to the grand market, Huaxinke plans to expand production by 15% to 20% this year, and will focus on MLCC, and will continue to expand production and grab the market next year.
Huaxinke was invited to participate in the "JPMorgan 4th Annual Asia Tech Tour" held by JPMorgan Securities yesterday. The market was held by General Manager Gu Lijing. The market was betting, which inspired Huaxinke to hit the daily limit at 308.5 yuan yesterday to close at 308.5 yuan, but foreign capital stopped buying for two consecutive times and sold more than 48 pieces. The proprietor also adjusted 104 pieces. The main buying came from Investment Credit, with more than 263 pieces.
Huaxinke made a strong statement, and the passive component group once again gathered popularity yesterday. Qilixin, Huarong, Lidun, Xinchang Electric and Miwangshi simultaneously hit the daily limit and closed the market, and the leading Guoji also rose by more than 8%.
Gu Lijing believes that the global supply of passive components will continue to be limited by problems such as long equipment delivery period, shortage of raw materials and limited industrial talents. Especially with the MLCC situation, the supply and demand of passive components will be tight for a long time and will become the norm in the future, but it may fluctuate slightly due to short-term regional economic impact.
is still optimistic based on the subsequent passive components market conditions, and demand continues to grow. In addition, there are currently no new suppliers in the industry that are capable of providing large-scale, reliable quality and complete series of products. Faced with the market out of stock, the outside world expects that Huaxinke's pace of expansion will not be too conservative.
At the same time, the market conditions of passive components remain hot. In addition to expanding production capacity, Huaxinke also continues to optimize its product portfolio, which is expected to increase the overall output value and drive performance to rise.
Huaxinke's performance in the second quarter of this year increased sharply, and its gross profit margin also jumped to 56.7%. It earned a single quarter for the whole year, with a net profit of 9.03 yuan per share, and a pure profit of 11.74 yuan per share in the first half of the year. The consolidated revenue in the first seven months was 23.541 billion yuan, an annual increase of more than doubled, and it earned more than half of the stock in July alone.
legal person expects that since the third quarter is the peak season, Huaxinke's subsequent performance is still expected.
Huaxinke is expected to increase its capital by 7 million shares at the end of July to increase the capital of cash to increase the purchase of relevant machinery and equipment needed to produce MLCC products. Regarding the market's reports that the case of an increase has been postponed, the company pointed out that the board of directors' resolution has increased and authorized the chairman to handle the case according to the market conditions, but so far, no application has been made for the case of an increase.
In addition, Huaxinke has previously become the largest shareholder of Jiabang, a protective component and antenna factory, through participating in private equity. Recently, Huaxinke was also re-elected by the Jiabang Stock Exchange, and obtained a director. East China, which is the same group, has obtained a supervisor. In addition, it has been courtesy of the existing legal person directors and has been re-assigned representatives. Zhang Ruizong, deputy general manager of Huaxinke, is responsible for the radio frequency component business, is equivalent to the fact that the group has actually mastered Jiabang's two directors and one supervisor, and will be committed to allowing both parties to play the benefits of cooperation in the future.
Looking forward to the market conditions of passive components application, Huaxinke pointed out that the supply of connected automotive grade passive components will continue to be tight, and the demand for 5G and peripheral applications will grow significantly. The global supply of passive components continues to be limited by equipment delivery, raw materials and limited industrial talents, which is particularly obvious in laminated ceramic capacitors (MLCC) products.
Huaxinke pointed out that there is no new passive component supplier in the market that is capable of providing large-scale quality and reliable complete series of products.
Huaxinke predicts that the supply of passive components will be tight for a long time and will become the norm in the future. Market demand may be affected by the short-term regional economy and fluctuates somewhat.
