(Producer of the report/author: AVIC Securities, Zou Runfang)
1. It has been a long-lasting and comprehensively developed
1.1 Deeply cultivated the industry for 50 years, actively expanding the production capacity of high-end
Company is a high-tech enterprise engaged in the research, development, production and sales of capacitor and its materials and instruments. The company began to produce aluminum electrolytic capacitor in 1970. Through research and development, joint ventures and acquisitions, it has accumulated rich technical and industrial resources, and formed a comprehensive and global industrial layout. The company is the vice chairman unit of the China Electronics component industry, the deputy leader of the China supercapacitor standard working unit, and the main drafting unit of the national standard for polymer solid capacitors.
capacitor is a basic component of the electronic information industry and has the functions of rectifying, filtering, and coupling in electronic circuits. The company is one of the few companies in the world that are engaged in research and development, manufacturing and sales of three major capacitors in the power electronics field. The technical performance and production and sales volume of industrial capacitors rank among the top in the world.
aluminum electrolytic capacitor is the earliest business to be engaged in and the highest proportion. In 2021, the company has three main products: aluminum electrolytic capacitors, film capacitors, and supercapacitors. In the first half of 2021, it achieved revenue of 1.354 billion yuan, 99 million yuan and 101 million yuan respectively. The company seized the development opportunities brought by new energy and electric vehicles, and gradually released the production capacity of high-end capacitors and . In the third quarter of 2021, it achieved operating income of 2.583 billion yuan, an increase of 47.59% over the same period last year, and its non-net profit was 314 million yuan, an increase of 58.47% over the same period last year. The increase in revenue mainly comes from high-end products with high gross profit. The company's net profit growth rate is higher than the revenue growth rate, and the profit quality has been significantly improved.
aluminum electrolytic capacitor is the company's main source of income at present, and the company's industrial capacitors have a competitive advantage around the world. In the high industry prosperity environment, the company has quickly increased the production capacity of oxhorn aluminum electrolytic capacitors. In 2021, the trial production of MLPC, solid-liquid hybrid capacitors and other products was smooth, laying the foundation for large-scale technical transformation and expansion, and the construction of the on-board aluminum electrolytic capacitor project started. The company's aluminum electrolytic capacitors have a high market share in industrial frequency conversion and UPS, and their main customers are spread all over the world, including Siemens, Huawei , Huichuan Technology , Bosch , UMC, Eaton and other companies. The research and development and production of
company's film capacitor started in 2011. It has been certified by users in many application fields and sold in batches. The company seized the rapid development opportunities of new energy, electric vehicle and other industries. Film capacitors have achieved positive results in improving technical performance, expanding production capacity, market development, internal integration and coordination.
The third product that the company's strategic development is supercapacitors. The company's lithium-ion supercapacitors have reached the international advanced level. In 2021, the company's supercapacitor filling and filling transformation and new production line construction projects were successfully promoted, and the applications of wind power, smart meters, rail transit, and smart grid side were further consolidated, and the applications of new energy buses, high-power energy storage, grid frequency regulation, mining and other fields were successfully launched.
Starting from 2019, the company's production capacity expansion strategy has achieved a bumper harvest. Supercapacitors, film capacitors, solid-state chip aluminum electrolytic (MLPC) and solid-liquid hybrid aluminum electrolytic capacitors have all been recognized by downstream customers and entered a period of rapid development. Comparing the operating income and book value of machinery and equipment of Aihua Group and Fala Electronics, it can be seen that the company's production line can be quickly converted into effective production capacity after it is put into production, and operating income grows simultaneously in the current period when machinery and equipment assets grow.
1.2 The industrial chain layout is becoming more and more complete. The cost of capacitors is mainly raw materials. According to the company's financial report in the past three years, the proportion of direct material costs of electronic components to operating costs remains above 85%. Through independent research and development and acquisition of upstream enterprises, the company has mastered the production technology of key raw materials.
Company’s aluminum electrolytic capacitors have a raw material self-supply rate of 75%. According to the prospectus of Aihua Group, in 2014, the cost of anode foil, cathode foil and electrolytic paper accounted for 38%, 4%, and 3.75% respectively.Chemical technology is one of the core technologies of electrode foil manufacturing, which is directly related to key factors such as the performance of chemical foil , chemical foil production cost, and the loss of corrosion foil specific capacity. Chemical liquid is one of the determinants of the quality of chemical foils, and the formulation and production process control of chemical liquid are important business secrets for various manufacturers. The company's industrial chain development began in 2007, and started to invest in the construction of 20 high-performance foil production lines in Inner Mongolia Haili Electronic Materials Co., Ltd., and invested in the construction of the "Medium-High Pressure foil Project" in 2010. In 2013, it acquired Rongsheng Electronics' layout corrosion foil and developed domestic high-voltage, high-strength, and high consistency high-pressure corrosion foil and solid polymer coating foil, which solved the corrosion and chemical wastewater treatment technology. The main raw materials of the film capacitor are electronic films, metal materials, resin materials, lead wires and lead materials, and shell materials. About 50% of the cost of film capacitor materials comes from metallized films. Xinjianghai, a subsidiary of the company, independently produces metallized films, and the raw material cost of the product has been significantly reduced. The company's metal coating technology has improved through learning and grown through research and development, and the metal coating of thin-film capacitors has been achieved mostly independent production.
The key materials for the production of supercapacitors are electrodes, separators and electrolytes. In 2016, the electrode materials of supercapacitors were produced independently by the company, while electrolyte , diaphragm, etc. need to be purchased from outside. In 2020, the company signed an agreement to acquire Hitachi Chemical's capacitor business, which has advantages in high-voltage large-capacity aluminum electrolytic capacitors, powder gold-treated foils, perforated foils, capacitor design and electrolyte formulation. (Report source: Future Think Tank)
2. Aluminum electrolytic capacitors are constantly innovating, reshaping the competitive landscape
2.1 Breaking the monopoly of Japanese companies, the company's market share increases
According to the Huajing Industry Research Institute, the global aluminum electrolytic capacitor market size in 2020 was US$6.27 billion, an increase of 0.97% year-on-year. It is expected that the market size will reach US$6.33 billion in 2021. In 2020, my country's sales of aluminum electrolytic capacitors were 29.6 billion yuan, and increased by 11.7% year-on-year, faster than global growth.
Global aluminum electrolytic capacitor manufacturers are mainly concentrated in China, Japan and Taiwan, and their backbone companies include NCC (Nippon Chemi-con), NICHICON, RUBYCON, Aihua Group, Jianghai Co., Ltd. , etc. Among them, the market share of Japanese manufacturers NCC, NICHICON and RUBYCON accounted for a total of 33% in 2020. According to the 2018 announcement of Aihua Group, my country's aluminum electrolytic capacitor production is the world's largest, but it is concentrated in mid- and low-end products. High-end aluminum electrolytic capacitor products (including horn capacitors and laminated chip solid-state aluminum electrolytic capacitors (MLPCs)) in global electronic components are mainly dominated by Japanese manufacturers. Jianghai Co., Ltd. has shown initial results in the expansion of production in the Niuhorn Type and MLPC, opening up space for future growth.
Due to insufficient momentum for demand for traditional consumer capacitors, leading Japanese companies began to turn to high-end capacitor production capacity, and their performance declined slightly in 2020. From 2019 to 2020, NCC's aluminum electrolytic capacitor revenue fell from 97.2 billion yen to 95.29 billion yen, a year-on-year decrease of 1.97%. NICHICON's revenue from aluminum electrolytic capacitors fell from 79.05 billion yen to 78.86 billion yen, a year-on-year decrease of 0.25%. Jianghai Co., Ltd. has aggressively expanded production, and its production capacity responded fully on the performance side. It achieved revenue of 2.583 billion yuan in the third quarter of 2021. It is expected that the company will surpass RUBYCON in 2021 and will have a third largest market share in the world. The current market structure is relatively scattered. Compared with the two leading manufacturers, the company's production capacity growth has not diminished and is still in an upward stage.
From the perspective of capital expenditure, Jianghai shares' capital expenditure is significantly higher than that of domestic companies, and gradually rushes to the investment scale of foreign companies in Shanghai . From the perspective of capital expenditure to revenue ratio, the company's capital expenditure to revenue ratio has remained above 7% for a long time, significantly higher than the industry level. We believe that the company attaches importance to fixed asset investment. Adequate capital expenditure lays a solid foundation for capacity expansion and continued profit growth.
2.2 The supply and demand relationship is tense, and the expansion of production of horn capacitors increases the new energy track
According to China Electronic Components Industry Association , affected by the supply and demand relationship, aluminum electrolytic capacitor manufacturers have had at least three rounds of price increases in 2021. NCC raised the contract price of aluminum capacitors on December 1, and rose by 10%. In 2021, the markets of new energy vehicles, , photovoltaics, etc. will be hot, becoming the main driving force for the growth of the aluminum electrolytic capacitor market. According to EV Volumes, the global sales of new energy vehicles in 2021 were 6.94 million, and increased by 106.37% year-on-year. According to National Energy Administration , the new installed capacity of photovoltaic power generation nationwide in 2021 was about 54.93GW, a year-on-year increase of 13.96%.
According to , the price of aluminum electrolytic capacitors in Japan was 12.27 yen/piece in January 2021, and rose to 13.62 yen/piece in December 2021, with an increase of about 11% in 2021. According to the China Electronic Components Industry Association, China's power restrictions have caused unstable supply of raw materials. The long-term expansion policies of the three major Japanese aluminum power plants, NCC, NICHICON and RUBYCON, are relatively cautious. With the rapid increase in market demand, supply and demand tend to become tight, and high-end products are even short of shortages, and it is expected that it will be difficult to relieve in the short term. Nippon Trade said that the market predicts that the overall electronics industry will continue to grow significantly next year, but supply problems continue to exist. The current order situation is good, but supply problems restrict production, resulting in a backlog. There is a continued shortage of supply of key components and raw materials, and some aluminum electrolytic capacitors and passive component products may be out of stock until the first half of 2022.
Company adapts to the rapid growth of new energy market and continues to expand the production capacity of horn capacitors. Niuke type aluminum electrolytic capacitors are mainly used in new energy vehicles, photovoltaics, inverters, , inverters and other fields. The company's 2020 horn capacitor production capacity is 14.5 million pieces per month. Aihua's Niuke Capacitor capacity in 2018 was 650,000 pieces per month, and the fundraising and expansion project plans to increase the production capacity to 4 million pieces per month. The completion rate of Aihua Group's Niuke Capacitor expansion project reached 53% in the first half of 2021. The monthly production capacity of 4 million units is approximately 400/1450=27.8% of Jianghai Stock Exchange's existing production capacity, and the company has scale advantages and first-mover advantages. In
photovoltaic inverter , the cost of the bullhorn capacitor accounts for about 4%. According to the prospectus of Jinlang Technology and Hemai Co., Ltd., the average cost of photovoltaic inverter is around 0.4 yuan/watt. According to the forecast of China Photovoltaic Industry Association, the global photovoltaic new installed capacity in 2021 is expected to be approximately 170GW, corresponding to the market demand of 1.9 billion yuan for bullhorn capacitors.
Company and Elna, a subsidiary of Sunsuodian , formed a joint venture subsidiary Jiangsu Elna. Vehicle products have a 1-2-year certification cycle. After completing the certification, the product can truly enter users. The company's automotive aluminum electrolytic capacitors have a promising future.
2.3 Promote the development of small capacitors and improve the layout of high-end MLPC
According to the company's 2016 announcement, in the global aluminum electrolytic capacitor market of US$5-6 billion, small capacitors account for about 52%, and large capacitors account for about 48%. In the field of consumer electronics , the main ones are miniaturized aluminum electrolytic capacitors, and the applications in the industrial field are mainly large electrolytics, horns and bolts. The two have different scopes of application in capacitance, voltage, etc. Small capacitors have smaller volumes and less materials, and the unit cost of is lower. Although the unit price of the product has also decreased, the gross profit margin is higher, especially in the fields of automotive electronics and smart devices.
The gross profit margins of aluminum electrolytic capacitors in different application fields vary greatly. According to the prospectus of Aihua Group, the downstream of small aluminum electrolytic capacitors mainly include lighting, industry, consumer electronics, and power supply. Among them, lighting capacitors are basically monopolized by Japanese companies and have high technical barriers. Aihua has achieved a high gross profit margin through technological breakthroughs; Dongyangguang mainly operates the power supply market, and the gross profit margin is relatively high; Jianghai Co., Ltd.'s products are mainly concentrated in the industrial market, and its capacitors are characterized by large specifications, high unit price, high unit material cost, and low labor cost, so the gross profit margin is relatively low; Wanyu Technology and Kepusong products are mainly concentrated in home appliances, consumer electronics and computer-related markets. This market belongs to the traditional consumer electronics industry, and the competition in consumer electronics industries such as home appliances has fierce competition, resulting in a low gross interest rate .
(Producer of the report/author: AVIC Securities, Zou Runfang)
1. It has been a long-lasting and comprehensively developed
1.1 Deeply cultivated the industry for 50 years, actively expanding the production capacity of high-end
Company is a high-tech enterprise engaged in the research, development, production and sales of capacitor and its materials and instruments. The company began to produce aluminum electrolytic capacitor in 1970. Through research and development, joint ventures and acquisitions, it has accumulated rich technical and industrial resources, and formed a comprehensive and global industrial layout. The company is the vice chairman unit of the China Electronics component industry, the deputy leader of the China supercapacitor standard working unit, and the main drafting unit of the national standard for polymer solid capacitors.
capacitor is a basic component of the electronic information industry and has the functions of rectifying, filtering, and coupling in electronic circuits. The company is one of the few companies in the world that are engaged in research and development, manufacturing and sales of three major capacitors in the power electronics field. The technical performance and production and sales volume of industrial capacitors rank among the top in the world.
aluminum electrolytic capacitor is the earliest business to be engaged in and the highest proportion. In 2021, the company has three main products: aluminum electrolytic capacitors, film capacitors, and supercapacitors. In the first half of 2021, it achieved revenue of 1.354 billion yuan, 99 million yuan and 101 million yuan respectively. The company seized the development opportunities brought by new energy and electric vehicles, and gradually released the production capacity of high-end capacitors and . In the third quarter of 2021, it achieved operating income of 2.583 billion yuan, an increase of 47.59% over the same period last year, and its non-net profit was 314 million yuan, an increase of 58.47% over the same period last year. The increase in revenue mainly comes from high-end products with high gross profit. The company's net profit growth rate is higher than the revenue growth rate, and the profit quality has been significantly improved.
aluminum electrolytic capacitor is the company's main source of income at present, and the company's industrial capacitors have a competitive advantage around the world. In the high industry prosperity environment, the company has quickly increased the production capacity of oxhorn aluminum electrolytic capacitors. In 2021, the trial production of MLPC, solid-liquid hybrid capacitors and other products was smooth, laying the foundation for large-scale technical transformation and expansion, and the construction of the on-board aluminum electrolytic capacitor project started. The company's aluminum electrolytic capacitors have a high market share in industrial frequency conversion and UPS, and their main customers are spread all over the world, including Siemens, Huawei , Huichuan Technology , Bosch , UMC, Eaton and other companies. The research and development and production of
company's film capacitor started in 2011. It has been certified by users in many application fields and sold in batches. The company seized the rapid development opportunities of new energy, electric vehicle and other industries. Film capacitors have achieved positive results in improving technical performance, expanding production capacity, market development, internal integration and coordination.
The third product that the company's strategic development is supercapacitors. The company's lithium-ion supercapacitors have reached the international advanced level. In 2021, the company's supercapacitor filling and filling transformation and new production line construction projects were successfully promoted, and the applications of wind power, smart meters, rail transit, and smart grid side were further consolidated, and the applications of new energy buses, high-power energy storage, grid frequency regulation, mining and other fields were successfully launched.
Starting from 2019, the company's production capacity expansion strategy has achieved a bumper harvest. Supercapacitors, film capacitors, solid-state chip aluminum electrolytic (MLPC) and solid-liquid hybrid aluminum electrolytic capacitors have all been recognized by downstream customers and entered a period of rapid development. Comparing the operating income and book value of machinery and equipment of Aihua Group and Fala Electronics, it can be seen that the company's production line can be quickly converted into effective production capacity after it is put into production, and operating income grows simultaneously in the current period when machinery and equipment assets grow.
1.2 The industrial chain layout is becoming more and more complete. The cost of capacitors is mainly raw materials. According to the company's financial report in the past three years, the proportion of direct material costs of electronic components to operating costs remains above 85%. Through independent research and development and acquisition of upstream enterprises, the company has mastered the production technology of key raw materials.
Company’s aluminum electrolytic capacitors have a raw material self-supply rate of 75%. According to the prospectus of Aihua Group, in 2014, the cost of anode foil, cathode foil and electrolytic paper accounted for 38%, 4%, and 3.75% respectively.Chemical technology is one of the core technologies of electrode foil manufacturing, which is directly related to key factors such as the performance of chemical foil , chemical foil production cost, and the loss of corrosion foil specific capacity. Chemical liquid is one of the determinants of the quality of chemical foils, and the formulation and production process control of chemical liquid are important business secrets for various manufacturers. The company's industrial chain development began in 2007, and started to invest in the construction of 20 high-performance foil production lines in Inner Mongolia Haili Electronic Materials Co., Ltd., and invested in the construction of the "Medium-High Pressure foil Project" in 2010. In 2013, it acquired Rongsheng Electronics' layout corrosion foil and developed domestic high-voltage, high-strength, and high consistency high-pressure corrosion foil and solid polymer coating foil, which solved the corrosion and chemical wastewater treatment technology. The main raw materials of the film capacitor are electronic films, metal materials, resin materials, lead wires and lead materials, and shell materials. About 50% of the cost of film capacitor materials comes from metallized films. Xinjianghai, a subsidiary of the company, independently produces metallized films, and the raw material cost of the product has been significantly reduced. The company's metal coating technology has improved through learning and grown through research and development, and the metal coating of thin-film capacitors has been achieved mostly independent production.
The key materials for the production of supercapacitors are electrodes, separators and electrolytes. In 2016, the electrode materials of supercapacitors were produced independently by the company, while electrolyte , diaphragm, etc. need to be purchased from outside. In 2020, the company signed an agreement to acquire Hitachi Chemical's capacitor business, which has advantages in high-voltage large-capacity aluminum electrolytic capacitors, powder gold-treated foils, perforated foils, capacitor design and electrolyte formulation. (Report source: Future Think Tank)
2. Aluminum electrolytic capacitors are constantly innovating, reshaping the competitive landscape
2.1 Breaking the monopoly of Japanese companies, the company's market share increases
According to the Huajing Industry Research Institute, the global aluminum electrolytic capacitor market size in 2020 was US$6.27 billion, an increase of 0.97% year-on-year. It is expected that the market size will reach US$6.33 billion in 2021. In 2020, my country's sales of aluminum electrolytic capacitors were 29.6 billion yuan, and increased by 11.7% year-on-year, faster than global growth.
Global aluminum electrolytic capacitor manufacturers are mainly concentrated in China, Japan and Taiwan, and their backbone companies include NCC (Nippon Chemi-con), NICHICON, RUBYCON, Aihua Group, Jianghai Co., Ltd. , etc. Among them, the market share of Japanese manufacturers NCC, NICHICON and RUBYCON accounted for a total of 33% in 2020. According to the 2018 announcement of Aihua Group, my country's aluminum electrolytic capacitor production is the world's largest, but it is concentrated in mid- and low-end products. High-end aluminum electrolytic capacitor products (including horn capacitors and laminated chip solid-state aluminum electrolytic capacitors (MLPCs)) in global electronic components are mainly dominated by Japanese manufacturers. Jianghai Co., Ltd. has shown initial results in the expansion of production in the Niuhorn Type and MLPC, opening up space for future growth.
Due to insufficient momentum for demand for traditional consumer capacitors, leading Japanese companies began to turn to high-end capacitor production capacity, and their performance declined slightly in 2020. From 2019 to 2020, NCC's aluminum electrolytic capacitor revenue fell from 97.2 billion yen to 95.29 billion yen, a year-on-year decrease of 1.97%. NICHICON's revenue from aluminum electrolytic capacitors fell from 79.05 billion yen to 78.86 billion yen, a year-on-year decrease of 0.25%. Jianghai Co., Ltd. has aggressively expanded production, and its production capacity responded fully on the performance side. It achieved revenue of 2.583 billion yuan in the third quarter of 2021. It is expected that the company will surpass RUBYCON in 2021 and will have a third largest market share in the world. The current market structure is relatively scattered. Compared with the two leading manufacturers, the company's production capacity growth has not diminished and is still in an upward stage.
From the perspective of capital expenditure, Jianghai shares' capital expenditure is significantly higher than that of domestic companies, and gradually rushes to the investment scale of foreign companies in Shanghai . From the perspective of capital expenditure to revenue ratio, the company's capital expenditure to revenue ratio has remained above 7% for a long time, significantly higher than the industry level. We believe that the company attaches importance to fixed asset investment. Adequate capital expenditure lays a solid foundation for capacity expansion and continued profit growth.
2.2 The supply and demand relationship is tense, and the expansion of production of horn capacitors increases the new energy track
According to China Electronic Components Industry Association , affected by the supply and demand relationship, aluminum electrolytic capacitor manufacturers have had at least three rounds of price increases in 2021. NCC raised the contract price of aluminum capacitors on December 1, and rose by 10%. In 2021, the markets of new energy vehicles, , photovoltaics, etc. will be hot, becoming the main driving force for the growth of the aluminum electrolytic capacitor market. According to EV Volumes, the global sales of new energy vehicles in 2021 were 6.94 million, and increased by 106.37% year-on-year. According to National Energy Administration , the new installed capacity of photovoltaic power generation nationwide in 2021 was about 54.93GW, a year-on-year increase of 13.96%.
According to , the price of aluminum electrolytic capacitors in Japan was 12.27 yen/piece in January 2021, and rose to 13.62 yen/piece in December 2021, with an increase of about 11% in 2021. According to the China Electronic Components Industry Association, China's power restrictions have caused unstable supply of raw materials. The long-term expansion policies of the three major Japanese aluminum power plants, NCC, NICHICON and RUBYCON, are relatively cautious. With the rapid increase in market demand, supply and demand tend to become tight, and high-end products are even short of shortages, and it is expected that it will be difficult to relieve in the short term. Nippon Trade said that the market predicts that the overall electronics industry will continue to grow significantly next year, but supply problems continue to exist. The current order situation is good, but supply problems restrict production, resulting in a backlog. There is a continued shortage of supply of key components and raw materials, and some aluminum electrolytic capacitors and passive component products may be out of stock until the first half of 2022.
Company adapts to the rapid growth of new energy market and continues to expand the production capacity of horn capacitors. Niuke type aluminum electrolytic capacitors are mainly used in new energy vehicles, photovoltaics, inverters, , inverters and other fields. The company's 2020 horn capacitor production capacity is 14.5 million pieces per month. Aihua's Niuke Capacitor capacity in 2018 was 650,000 pieces per month, and the fundraising and expansion project plans to increase the production capacity to 4 million pieces per month. The completion rate of Aihua Group's Niuke Capacitor expansion project reached 53% in the first half of 2021. The monthly production capacity of 4 million units is approximately 400/1450=27.8% of Jianghai Stock Exchange's existing production capacity, and the company has scale advantages and first-mover advantages. In
photovoltaic inverter , the cost of the bullhorn capacitor accounts for about 4%. According to the prospectus of Jinlang Technology and Hemai Co., Ltd., the average cost of photovoltaic inverter is around 0.4 yuan/watt. According to the forecast of China Photovoltaic Industry Association, the global photovoltaic new installed capacity in 2021 is expected to be approximately 170GW, corresponding to the market demand of 1.9 billion yuan for bullhorn capacitors.
Company and Elna, a subsidiary of Sunsuodian , formed a joint venture subsidiary Jiangsu Elna. Vehicle products have a 1-2-year certification cycle. After completing the certification, the product can truly enter users. The company's automotive aluminum electrolytic capacitors have a promising future.
2.3 Promote the development of small capacitors and improve the layout of high-end MLPC
According to the company's 2016 announcement, in the global aluminum electrolytic capacitor market of US$5-6 billion, small capacitors account for about 52%, and large capacitors account for about 48%. In the field of consumer electronics , the main ones are miniaturized aluminum electrolytic capacitors, and the applications in the industrial field are mainly large electrolytics, horns and bolts. The two have different scopes of application in capacitance, voltage, etc. Small capacitors have smaller volumes and less materials, and the unit cost of is lower. Although the unit price of the product has also decreased, the gross profit margin is higher, especially in the fields of automotive electronics and smart devices.
The gross profit margins of aluminum electrolytic capacitors in different application fields vary greatly. According to the prospectus of Aihua Group, the downstream of small aluminum electrolytic capacitors mainly include lighting, industry, consumer electronics, and power supply. Among them, lighting capacitors are basically monopolized by Japanese companies and have high technical barriers. Aihua has achieved a high gross profit margin through technological breakthroughs; Dongyangguang mainly operates the power supply market, and the gross profit margin is relatively high; Jianghai Co., Ltd.'s products are mainly concentrated in the industrial market, and its capacitors are characterized by large specifications, high unit price, high unit material cost, and low labor cost, so the gross profit margin is relatively low; Wanyu Technology and Kepusong products are mainly concentrated in home appliances, consumer electronics and computer-related markets. This market belongs to the traditional consumer electronics industry, and the competition in consumer electronics industries such as home appliances has fierce competition, resulting in a low gross interest rate .
Jianghai Co., Ltd.'s main domestic competitor of small aluminum electrolytic capacitors is Aihua Group. Aihua Group's main products are small aluminum electrolytic capacitors. The two companies are the main domestic aluminum electrolytic capacitor manufacturers. Jianghai is developing small aluminum electrolytic capacitors, aiming at the differentiated market, supplementing products in the fields of communication equipment , fast charging power supply, UPS power supply, etc., which are other than lighting capacitors, to achieve coordinated development, and lay the foundation for the expansion of production with a focus on MLPC.
According to Liding Industry Research Center, MLPC products are mainly used in mobile phones, notebook motherboards and other fields. In 2018, the MLPC market space exceeded 3 billion yuan. A smartphone requires 1 MLPC, 8 MLPCs, and 32 server motherboards, with an average annual demand of more than 2.5 billion yuan, an average price of 1.0-1.2 yuan per unit, and a market space of more than 3 billion yuan. In the industry, Panasonic is the dominant player, with a gross profit margin of up to 70-80%. Only Panasonic Sanyo and SAMYOUNG (Samyoung, South Korea) can be produced in series, among which Sanyo is mainly used for large-scale commercial supply, with a market share of about 90%.
According to the 2018 announcement of Aihua Group, Panasonic's production in the MLPC field reaches about 200 million pieces per month, while MLPC is only a few companies such as Aihua and Guoguang in China, and the output is not high, and it can only reach the level of two or three million pieces per month. More than 90% of the entire MLPC industry still relies on Japanese companies to import.
According to the announcement of Jianghai Co., Ltd. in 2016, the company invested 50 million yuan to establish a wholly-owned subsidiary of Hubei Haicheng , and developed small capacitors and MLPC. In 2018, the company added an additional 220 million yuan to Hubei Haicheng to further promote the development of small capacitors.
Company's 2020 liquid, solid and solid laminated polymer capacitors (MLPC) trial certification and market development were comprehensively promoted. Customer evaluation was good. In the first half of 2021, the trial production of MLPC, solid-liquid hybrid capacitors and other products was smooth, laying the foundation for large-scale technical transformation and expansion. The company will focus on promoting the MLPC expansion plan, with production capacity expected to expand from 8 million pieces per month in 2021 to 100 million pieces per month in 2024. The completion progress of Aihua Group's MLPC production project in the first half of 2021 was 2.86%, with a designed production capacity of 26 million per piece. The company's MLPC production capacity construction progress is leading in China. (Report source: Future Think Tank)
3. Anchoring new energy, film capacitor starts at the high-end market
3.1 The market competition is sufficient, and the high-end market has room for growth
film capacitors are widely used in many industries such as home appliances, communications, power grids, industrial control, lighting and new energy (photovoltaic, wind energy, automobiles). Due to market changes and technological advancements, the demand for film capacitors in the lighting field has decreased and competition has intensified. In the next few years, with the country's increasing investment in smart grid construction, electrified railway construction, new energy (photovoltaic, wind energy, automobile), and the upgrade of consumer electronics product , and industrial control technology advances, it is expected that the high-end film capacitor market will continue to grow steadily.
Global market, thin film capacitor manufacturers such as Panasonic, TDK and Fara Electronics have a long history of development, strong capital and technical strength, and are in a leading position in the industry. In China, market participants include subsidiaries of multinational corporations and locally grown manufacturers. Japanese companies dominate the market of high-voltage large-capacity capacitors such as electric vehicles, new energy, industrial control, and rail transit. Chinese manufacturers are concentrated in the medium and low voltage fields (home appliances, electronic components). Fara Electronics has a high market share in the domestic automotive and photovoltaic fields, and Jianghai Co., Ltd.'s film capacitors are mainly used in the automotive, photovoltaic and wind power fields.
In the international market, due to the weak overall profitability of film capacitors, many manufacturers have gradually faded out of the traditional field, leaving only a few high-end suppliers. The scale of traditional products has gradually shrunk, releasing a certain market space. The focus of competition mainly shifts to the development of power electronic capacitors such as new energy and power grids.
film capacitors have the characteristics of self-healing, can withstand a large range of AC and DC voltages and high currents, and are suitable for many uses in the range of hundreds of watts to several megawatts.In the field of automotive and new energy, thin film capacitors supplement application scenarios that ceramic capacitors cannot be covered by .
on-board film capacitors are mainly used for smoothing, absorbing and noise suppression of frequency conversion circuits. According to TDK and Panasonic's application guide, the bicycle value of thin film capacitor is about 337 yuan. Global electric vehicle sales are growing rapidly and the degree of electronicization of automobiles is becoming increasingly high, the automotive thin film capacitor market is expected to reach 6.922 billion yuan in 2025 at an average annual growth rate of 44%. In
photovoltaic inverter, thin film capacitors are mainly used in AC-Link, DC-Link, etc. The cost proportion of film capacitors in photovoltaic inverters is comparable to that of aluminum electrolytic capacitors. According to the previous calculation, the market space of film capacitors in photovoltaics reached 1.9 billion yuan in 2021, and then it maintains an average annual growth rate of 15.7%-18.7%.
According to Zhiyan Consulting, the market size of China's film capacitors was 9.04 billion yuan in 2019, and reached 10.2 billion yuan in 2020, an increase of 12.8% year-on-year. The company's film capacitor revenue in 2020 and the first half of 2021 was RMB 194 million and RMB 99 million, respectively, and Fara Electronics was RMB 1.854 billion and 1.15 billion, respectively. Although the company and Fara Electronics have a gap in revenue scale, the domestic market space is sufficient to accommodate two film capacitor manufacturers. The company focuses on the development of film capacitors in industrial fields such as photovoltaics, automotive and wind power, and will benefit from the growth in demand in the new energy industry with Fara Electronics.
3.2 Photovoltaics reached the profit turning point, and the vehicle-mounted momentum was ready to go
Company established its subsidiary Xinjianghai Power in 2011 and began to expand its film capacitor business, mainly engaged in photovoltaic film capacitors. In 2016, Xinjianghai Power acquired Suzhou Youpu Electronics to increase the production capacity of consumer electronic terminal film capacitors; in 2019, through Xinjianghai Power, it jointly established Nantong Haimei Electronics Co., Ltd. with the United States Jimei, to extend its products to on-board film capacitors; in 2021, in order to accelerate technological transformation and improve the production capacity of film capacitors for new energy, the company increased its capital to Youpu Electronics by 130 million yuan. The company's film capacitors entered the mass production stage in 2017, and Xinjianghai Power and UP Electronics turned losses into profits in the first half of 2021 and 2020 respectively.
The company's automotive film capacitors are mainly produced by Haimei Electronics, a joint venture with Jimei Electronics. Some of Jimei's overseas sales business is supplied by Haimei Electronics. Domestic customers include powertrain manufacturers such as Huichuan Technology, and the company has related cooperation with domestic terminal customers Xiaopeng , NIO , etc. After production expansion and material cost control, on-board film capacitors are expected to usher in better returns.
4. Develop supercapacitor potential and grow together with the industry.
4.1 Demand is gradually opening up, and the development pace is the leading domestic
supercapacitor is a general term for a new energy storage device between traditional capacitors and secondary batteries. It is mainly divided into electrical double layer capacitors and lithium ion capacitors. It is an extension of traditional capacitor products in the field of energy storage. It has the characteristics of ultra-large energy storage capacity that previous capacitor products do not have. It can be used alone as an energy storage module. Compared with secondary batteries,
supercapacitor has the advantages of short charging time and long charging and discharging cycle life. Therefore, supercapacitors replace and upgrade traditional capacitors and secondary battery products in areas such as large energy storage and frequent charging and discharging.
double layer capacitors are mainly used in servers, TVs, smart three-meters, ETC and other fields. Lithium ion capacitors have high energy density and fast charging time. There is a lot of room for development in new energy buses, AGV, wind power pitches, elevators, construction machinery, port machinery, subway and other fields, vehicle start-stop systems, steering systems, etc.
According to Mordor Intelligence's forecast, the global supercapacitor market will be US$887 million in 2020 and will reach US$18.69 by 2026, with an annual compound growth rate of 13.5%. The main manufacturers in the market include Aowei Technology, Shanghai Lumi (Siyuan Electric Company), capxx, maxwell, and skeleton technologies. The company's supercapacitors are ahead of the domestic revenue scale and rank as the world's leading position.
4.2 Supercapacitance business is blooming in multiple points
The company's supercapacitor filling and filling transformation project is being carried out smoothly and the construction of new production lines is being carried out.In 2021, the company's supercapacitors entered the fields of smart three meters, automotive ETC, wind power pitch, smart grid transformation, rail transit and other fields. Applications in new energy buses, high-power energy storage, power grid frequency regulation, mining and other fields have been successfully launched.
Since 2000, the company has begun to come into contact with the supercapacitor industry. In 2013, in order to accelerate the development of the supercapacitor project, the company acquired the lithium-ion supercapacitor technology and intellectual property rights of Japan's ACT Company, and hired core technical personnel of ACT Company as consultants to accelerate the digestion of advanced lithium-ion supercapacitor technology. In the field of double layer capacitor , the company has carried out technical cooperation with Japan ELNA Company, and cooperated with relevant Korean technical personnel and companies to introduce the electrode manufacturing technology of Korean double layer capacitors. In April 2015, the company established Nantong Jianghai Energy Storage Technology Co., Ltd., which is responsible for the research and development, production and sales of supercapacitor products. In 2016, the company raised 800 million yuan in private placement for the research and development and production of supercapacitors. The company's supercapacitor industrialization project's investment progress in the first half of 2021 reached 73.5%. We expect to achieve revenue of 250 million yuan in 2021. After the project is completed and full production, it is expected to achieve annual revenue of 1.089 billion yuan.
5. Profit forecast
5.1 Profit forecast
makes profit forecast based on the following main assumptions, and the company's main products sales, unit price, sales revenue, and sales cost :
1) The company's oxhorn aluminum electrolytic capacitors, MLCP, film capacitors, and aluminum electrolytic capacitors have been successfully expanded, and sales volume has increased significantly;
2) In 2022, supply and demand continued to be tight, prices rose, and prices remained stable in 2023;
5.2 Investment analysis
As the country continues to increase its dual carbon policy, photovoltaics, new energy vehicles, energy storage, ultra-high voltage power grids, etc. maintain a high prosperity, The demand for high-end capacitors is increasing, and as the leading company in aluminum electrolytic capacitors, the company will fully benefit from the rise of the industry track. In terms of film capacitors, although the company has entered the industry late, as a mature passive component company, it has advantages over many years of technology and customer accumulation, laying a good and solid foundation for subsequent products to enter the market. The company's supercapacitor scale is comparable to that of international first-class companies. Against the background of rapid growth of the supercapacitor industry, the company's first-mover advantage is obvious. The company's production expansion plans will be put into production in the next few years, which will help the company break through the existing capacity bottleneck, improve its core competitiveness, and open up the company's medium- and long-term growth space in the future.
(This article is for reference only and does not represent any of our investment advice. If you need to use relevant information, please refer to the original text of the report.)
selected report source: [Future Think Tank].
In the field of automotive and new energy, thin film capacitors supplement application scenarios that ceramic capacitors cannot be covered by .on-board film capacitors are mainly used for smoothing, absorbing and noise suppression of frequency conversion circuits. According to TDK and Panasonic's application guide, the bicycle value of thin film capacitor is about 337 yuan. Global electric vehicle sales are growing rapidly and the degree of electronicization of automobiles is becoming increasingly high, the automotive thin film capacitor market is expected to reach 6.922 billion yuan in 2025 at an average annual growth rate of 44%. In
photovoltaic inverter, thin film capacitors are mainly used in AC-Link, DC-Link, etc. The cost proportion of film capacitors in photovoltaic inverters is comparable to that of aluminum electrolytic capacitors. According to the previous calculation, the market space of film capacitors in photovoltaics reached 1.9 billion yuan in 2021, and then it maintains an average annual growth rate of 15.7%-18.7%.
According to Zhiyan Consulting, the market size of China's film capacitors was 9.04 billion yuan in 2019, and reached 10.2 billion yuan in 2020, an increase of 12.8% year-on-year. The company's film capacitor revenue in 2020 and the first half of 2021 was RMB 194 million and RMB 99 million, respectively, and Fara Electronics was RMB 1.854 billion and 1.15 billion, respectively. Although the company and Fara Electronics have a gap in revenue scale, the domestic market space is sufficient to accommodate two film capacitor manufacturers. The company focuses on the development of film capacitors in industrial fields such as photovoltaics, automotive and wind power, and will benefit from the growth in demand in the new energy industry with Fara Electronics.
3.2 Photovoltaics reached the profit turning point, and the vehicle-mounted momentum was ready to go
Company established its subsidiary Xinjianghai Power in 2011 and began to expand its film capacitor business, mainly engaged in photovoltaic film capacitors. In 2016, Xinjianghai Power acquired Suzhou Youpu Electronics to increase the production capacity of consumer electronic terminal film capacitors; in 2019, through Xinjianghai Power, it jointly established Nantong Haimei Electronics Co., Ltd. with the United States Jimei, to extend its products to on-board film capacitors; in 2021, in order to accelerate technological transformation and improve the production capacity of film capacitors for new energy, the company increased its capital to Youpu Electronics by 130 million yuan. The company's film capacitors entered the mass production stage in 2017, and Xinjianghai Power and UP Electronics turned losses into profits in the first half of 2021 and 2020 respectively.
The company's automotive film capacitors are mainly produced by Haimei Electronics, a joint venture with Jimei Electronics. Some of Jimei's overseas sales business is supplied by Haimei Electronics. Domestic customers include powertrain manufacturers such as Huichuan Technology, and the company has related cooperation with domestic terminal customers Xiaopeng , NIO , etc. After production expansion and material cost control, on-board film capacitors are expected to usher in better returns.
4. Develop supercapacitor potential and grow together with the industry.
4.1 Demand is gradually opening up, and the development pace is the leading domestic
supercapacitor is a general term for a new energy storage device between traditional capacitors and secondary batteries. It is mainly divided into electrical double layer capacitors and lithium ion capacitors. It is an extension of traditional capacitor products in the field of energy storage. It has the characteristics of ultra-large energy storage capacity that previous capacitor products do not have. It can be used alone as an energy storage module. Compared with secondary batteries,
supercapacitor has the advantages of short charging time and long charging and discharging cycle life. Therefore, supercapacitors replace and upgrade traditional capacitors and secondary battery products in areas such as large energy storage and frequent charging and discharging.
double layer capacitors are mainly used in servers, TVs, smart three-meters, ETC and other fields. Lithium ion capacitors have high energy density and fast charging time. There is a lot of room for development in new energy buses, AGV, wind power pitches, elevators, construction machinery, port machinery, subway and other fields, vehicle start-stop systems, steering systems, etc.
According to Mordor Intelligence's forecast, the global supercapacitor market will be US$887 million in 2020 and will reach US$18.69 by 2026, with an annual compound growth rate of 13.5%. The main manufacturers in the market include Aowei Technology, Shanghai Lumi (Siyuan Electric Company), capxx, maxwell, and skeleton technologies. The company's supercapacitors are ahead of the domestic revenue scale and rank as the world's leading position.
4.2 Supercapacitance business is blooming in multiple points
The company's supercapacitor filling and filling transformation project is being carried out smoothly and the construction of new production lines is being carried out.In 2021, the company's supercapacitors entered the fields of smart three meters, automotive ETC, wind power pitch, smart grid transformation, rail transit and other fields. Applications in new energy buses, high-power energy storage, power grid frequency regulation, mining and other fields have been successfully launched.
Since 2000, the company has begun to come into contact with the supercapacitor industry. In 2013, in order to accelerate the development of the supercapacitor project, the company acquired the lithium-ion supercapacitor technology and intellectual property rights of Japan's ACT Company, and hired core technical personnel of ACT Company as consultants to accelerate the digestion of advanced lithium-ion supercapacitor technology. In the field of double layer capacitor , the company has carried out technical cooperation with Japan ELNA Company, and cooperated with relevant Korean technical personnel and companies to introduce the electrode manufacturing technology of Korean double layer capacitors. In April 2015, the company established Nantong Jianghai Energy Storage Technology Co., Ltd., which is responsible for the research and development, production and sales of supercapacitor products. In 2016, the company raised 800 million yuan in private placement for the research and development and production of supercapacitors. The company's supercapacitor industrialization project's investment progress in the first half of 2021 reached 73.5%. We expect to achieve revenue of 250 million yuan in 2021. After the project is completed and full production, it is expected to achieve annual revenue of 1.089 billion yuan.
5. Profit forecast
5.1 Profit forecast
makes profit forecast based on the following main assumptions, and the company's main products sales, unit price, sales revenue, and sales cost :
1) The company's oxhorn aluminum electrolytic capacitors, MLCP, film capacitors, and aluminum electrolytic capacitors have been successfully expanded, and sales volume has increased significantly;
2) In 2022, supply and demand continued to be tight, prices rose, and prices remained stable in 2023;
5.2 Investment analysis
As the country continues to increase its dual carbon policy, photovoltaics, new energy vehicles, energy storage, ultra-high voltage power grids, etc. maintain a high prosperity, The demand for high-end capacitors is increasing, and as the leading company in aluminum electrolytic capacitors, the company will fully benefit from the rise of the industry track. In terms of film capacitors, although the company has entered the industry late, as a mature passive component company, it has advantages over many years of technology and customer accumulation, laying a good and solid foundation for subsequent products to enter the market. The company's supercapacitor scale is comparable to that of international first-class companies. Against the background of rapid growth of the supercapacitor industry, the company's first-mover advantage is obvious. The company's production expansion plans will be put into production in the next few years, which will help the company break through the existing capacity bottleneck, improve its core competitiveness, and open up the company's medium- and long-term growth space in the future.
(This article is for reference only and does not represent any of our investment advice. If you need to use relevant information, please refer to the original text of the report.)
selected report source: [Future Think Tank].
