The mother of electronics PCB industry is increasing in concentration! PCB stocks such as Shenzhen South Circuit and Shanghai Electric Power Co., Ltd. are performing against the will. So can Pengding, as the global PCB leader, show its advantages?
These PCB stocks performed well and against the sky under the weak market...
The market continued to be sluggish, and Yongxin Optics rose slightly after opening the board, but in the end, it did not avoid the short-term curse of the fact that new stocks cannot rise straight after opening the board. Most of the new declines in this position have exceeded 40% for many times, and even the number of new stocks has been falling. However, there is a small group of second-tier newcomers in the middle that did not continue to sell, but gradually stabilized and made a small increase at the bottom, such as the China New Zealand Syke, which has continuously set new highs, and Perchoa, which is still fluctuating at a high level, and of course, there is also the largest domestic PCB manufacturer , Shennan Circuit . It can be said that as the mother of electronics, the PCB sector is extremely active every time, such as the former leader in Guangdong Junya , and the Shanghai Electric Co., Ltd. , which has been setting new highs against the trend. Of course, the performance of the PCB sector is also quite differentiated!
Nowadays, the real global giant in the PCB field, The second A-share company under Foxconn is about to open its board. Will it be a tragedy of Foxconn Industrial and Commercial Bank of China after the board is opened? Or can it have a certain band increase like CATL? What are its highlights? Let’s see today’s dolphins analyze them in depth!
The previous analysis link about Shennan circuit is as follows:
The company's main products include flexible printed circuit board (FPC), high-density connecting board (HDI) and rigid printed circuit board (R-PCB) of various specifications.
According to different downstream application fields, the company's products can be divided into communication boards, consumer electronics and computer boards, etc., and are widely used in mobile phones, network equipment, tablets, wearable devices, laptops, servers/storages and automotive electronics fields.
The domestic PCB industry is experiencing a wave of price increases. The company's electronic parts materials cost fluctuates greatly.
PCB production requires a wide variety of raw materials, mainly copper clad plate (CCL), semi-cured sheet (PP), copper foil , copper balls, gold salt, ink, dry film and other materials. Generally speaking, copper clad plate accounts for about 37% of PCB cost composition, 13% of semi-cured sheets, 8% of gold salts, and 5% of copper foil copper balls, and the labor cost ratio is also relatively high by about 11%.
Domestic PCB manufacturers have increased costs due to environmental protection issues and the rise in raw materials such as copper (copper clad plates and copper foils), which led to an increase in costs, so a collective price increase wave occurred. Since July, PCB factories including Omway Electronics and Jiantao Group have issued price increases notices.
In addition, in recent years, the domestic market's environmental awareness has been strengthened, from Jiangsu Kunshan emission limit at the end of 2017, to Zhuhai and Shanghai emission limits, and then to Shenzhen's strict investigation. Based on the sewage discharge problem of the PCB industry, PCB factories at this stage, whether Taiwanese, mainland, or even foreign investment, are unpopular industries in the mainland. For this reason, in addition to facing the pressure of continuous rising costs, PCB operators must also continue to shrink, and even eventually face the pressure of leaving.
However, this has little impact on Pengding. , because the company's largest procurement proportion is electronic parts, the procurement proportion accounts for more than 50%. Because the company requires customers to purchase electronic parts such as microphones, ICs, LEDs and connectors and PCBs for assembly and then sale. The procurement price of electronic parts is greatly affected by its upstream raw material prices, downstream market demand, and product process complexity. As for the purchase of flexible copper foil substrates + cover films, the proportion of procurement was only about 4%. In 2016, the company's non-net profit fell by 34.54% year-on-year, mainly because more high-priced electronic parts and other raw materials caused a large increase in cost.
Pengding Holdings' revenue in the first half of 2018 was 9.479 billion yuan, a year-on-year increase of 28.21%; net profit excluding non-net profit was 3.593 billion yuan, a year-on-year increase of 148.75%. The company expects revenue in the first quarter of 2018 to increase by 21.52-29.26% year-on-year; net profit excluding non-network increases by 70.08-87.76% year-on-year.
Most of the customers are Apple and Apple's industrial chain companies. Apple's direct order revenue alone accounts for more than 50% of
Company customers are divided into three categories: brand customers, EMS manufacturers and module manufacturers.Among them, Apple is the company's largest customer, with revenue accounting for 53.19%, 61.32%, and 63.30% from 2015 to 2017, respectively, and it was as high as 71.35% in the first quarter of 2018. The revenue share of has increased year by year mainly because Apple's orders have changed from purchasing from purchasing designated assembly plants to purchasing directly.
Hon Hai and its subsidiaries have firmly ranked second largest customer of the company, accounting for 11.86%, 5.44% and 5.43% of revenue from 2015 to 2017, respectively, and 6.11% in the first quarter of 2018. In addition, Apple's industrial chain companies AAC Group, Chenhong Group, Huanxu Electronics, etc. are also the company's main customers.
In addition to Apple, the company's customers include OPPO, BBK Group, Microsoft, Nokiah, SONY, Lenovo , etc.
PCB is the mother of electronics, 5G+cloud computing+automotive electronics, etc. are the main growth drivers
printed circuit board is the "mother of electronic products", and is widely used in communication electronics, consumer electronics, computers, automotive electronics, industrial control, medical devices, national defense and aerospace fields. After experiencing a continuous slight decline in 2015 and 2016, the total output value of the global PCB industry in 2017 was estimated to reach US$58.84 billion, an increase of 8.6% year-on-year, and is expected to reach US$68.81 billion by 2022. The global PCB market will maintain a compound growth rate of 3.2% in the next five years, and the Internet of Things, automotive electronics, Industry 4.0, cloud servers, storage devices, etc. will become the new directions driving the growth of PCB demand.
Since 2006, China has surpassed Japan to become the world's largest PCB producer, and its PCB output and output value rank first in the world. China's share of the global PCB industry's total output value has risen from 31.18% in 2008 to 50.53% in 2017. It is expected to maintain a compound growth rate of 3.7% in the future, reaching US$35.686 billion by 2022
From the perspective of market structure, the concentration of the industry continues to increase, and the market share of the world's top five PCB manufacturers has increased from 10.80% in 2006 to 23.09% in 2017. However, on the other hand, the market share of the top 20 companies in the PCB industry was basically maintained between 45% and 50% from 2011 to 2017.
According to statistics, in 2016, the market share of Taiwanese, Japanese, Korean and mainland enterprises in the global PCB market was 30.2%, 21.6%, 17.6% and 16.8% respectively. At present, mainland China PCB companies started late, generally have a small production scale and a low overall market share. However, many listed companies have turned to relatively high-end PCB products such as flexible printed circuit boards, HDI and high-multi-layer printed circuit boards.
The proportion of output value and growth space in various sub-sectors are as follows:
The demand for smartphone replacement is stimulated. The revenue share of communication boards has increased year by year
The company's communication boards are mainly used in products such as mobile phones, network communication equipment, etc. It is also the company's largest source of revenue, and its revenue share continues to increase, from 63.77% in 2014 to 81.1% in the first quarter of 2018.
2014 smartphones entered the stock era, but with the continuous emergence of innovative mobile phones such as fingerprint recognition, 3D Touch, large screen, and dual cameras, stimulating consumers' demand for replacement. In 2015, the company's communication board shipments increased by 23.2% year-on-year; the sales unit price also increased by 5.58% year-on-year, which ultimately led to a 30% year-on-year revenue in 2015.
In 2016, due to the decline in sales of Nokia and Sony Ericsson's mobile phones, the company's communication board shipments decreased significantly, a year-on-year decrease of 7%. In 2016, the company's new products direct raw materials increased by 27.86% year-on-year, which was higher than the average sales price by 12.97% year-on-year. In addition, the company also reduced outsourced processing and increased independent production, which also increased direct labor costs. In the end, the company's communication board gross profit margin dropped sharply from 21.06% in 2015 to 16.29% in 2016
In 2017, the company significantly reduced the production of low-priced communication boards used in traditional network communication products, which led to the increase in the sales proportion of high-priced products. The average selling price of communication boards increased by 12.94% year-on-year. Although direct materials continued to increase by 23.21% year-on-year in 2017, the direct labor cost decreased by 15.16% year-on-year, and the capacity utilization rate reached 85.13% significantly increased compared with 2016. In addition, communication boards were conducted in communication boards. The unit manufacturing cost of rigid-flex bonded boards produced by SMT patch assembly is low, which has increased the gross profit margin of communication boards to 21.06% in 2017.In addition, with shipments rising by 24.33% year-on-year, the company's communication board revenue increased by 40.42% year-on-year in 2017.
More analysis of Pengding Holdings and exclusive comments on dolphins, welcome to click "Learn More" to view
6
