With strong official support and an environment full of hot money in the capital market, the PCB industry chain has been slowly catching up to the level of the leading group in terms of production scale or technical capabilities in recent years.
The industry pointed out that domestic PCB factories have a large capital advantage, and the capital market has a lot of hot money. In recent years, as the global PCB market conditions have improved, it has been easier to raise funds by listing than in the past. Many leading manufacturers such as Shennan, Shenghong, Jing Wang and so on, the amount of capital has clearly exploded, and the cash in hand makes them relentless in expanding production capacity. For example, Shennan Circuits went public in 2017 and raised RMB 1.268 billion of funds. In addition to investing in HDI board production capacity expansion, it also focused on IC substrates. Jingwang announced a few days ago that it will publicly issue 978 million yuan of convertible corporate bonds, which were also formally approved by the China Securities Regulatory Commission in June. It is expected that the funds will also be used to continue production.
In addition to continuing to expand the scale of production, domestic industry players are also rushing to catch up with their industrial technology, actively seeking orders and cooperation opportunities from major international manufacturers. As one of Huawei's main suppliers, Shennan Circuits, which focuses on communication-related products, is also following up on the development of 5G-related products driven by the good development of domestic communication brands. Eaton Electronics has been working on automotive electronics for many years, and has gradually obtained certifications from international manufacturers such as Bosch and Continental. Its production capacity will gradually increase this year, which is expected to drive further growth in the company's revenue.
Domestic companies have always been good at expanding the market through mergers and acquisitions of overseas companies. This is the same in the PCB industry. After the acquisition of MFLX (Multi-Fineline Electronix), a manufacturer of precision electronic products in 2016, Dongshan Precision officially entered the Apple supply chain. , The profitability has been substantially reversed. In 2017, net profit reached RMB 519 million, which was a 16-fold increase from RMB 31 million in 2015. Dongshan Precision announced in June that it plans to buy Multek, a PCB business group of Flextronics (FLEX), for US$29.25 million, which is expected to enable the company to obtain high-end PCB technology. The subsequent growth of market competitiveness cannot be underestimated.
The complete industrial settlement is also one of the reasons for the rapid development of domestic PCB factories. It has everything from the upstream copper foil substrate factory to the downstream assembly factory, such as the upstream copper foil substrate factory Shengyi Technology, the glass fiber cloth factory Jinan Guoji, equipment Factory Han's CNC, etc., are all excellent manufacturers with a single-quarter revenue of more than 1 billion yuan. With the upcoming launch of new technical specifications such as 5G, the upstream technical capabilities and capacity performance are highly valued. This is nothing more than a good opportunity for domestic upstream manufacturers to cut into the competition.
In addition, the tightening of environmental protection policies in various parts of the country is also beneficial to the development of the entire industry. As the emission restriction policy reduces the living space of small factories and eliminates low-quality production capacity, market supply and demand will be more stable, and at the same time, brand owners’ The evaluation of the overall manufacturer improves the ability to win orders.
As for the recent trade war issues, as the latest tariff list contains many electronic products, it is still uncertain whether Huawei will become the next target of the US government. Therefore, the outside world is also very curious whether the operating conditions of domestic PCB factories will be affected. At present, most manufacturers are still holding a cautious and neutral attitude. Shennan Circuit said that at least the company's operations have not changed significantly at this stage, but the follow-up development still needs to be observed.
5G outlet leads another wave of PCB
With the formulation of 5G standards and the acceleration of 5G commercialization, it will have extraordinary potential to drive the future growth of the PCB industry.
From 1G to 5G, the upgrade of communication technology: Each generation of communication technology upgrades has brought revolutionary changes to terminal products, redefining products, and driving the reconstruction and tremendous changes of the entire industrial chain.
5G: The user experience rate, connection density, end-to-end delay, peak rate, etc. are comprehensively improved. It is expected to redefine terminal products in combination with VR and AR technologies, which will fundamentally improve the dimensions and bring people into the 3D era.
Communication technology upgrade schedule
Just recently, the 3GPP plenary meeting of the international standardization agency officially approved the freezing of the fifth-generation mobile communication technology standard (5G NR) independent networking (SA) function. The 5G industry has begun the full sprint stage, which also provides a first-mover advantage for China's PCB industry to win the world. . In September 2017, my country has already started the test of the third phase of testing, and fully launched the construction of the 5G test environment. It is expected that the transmission construction will be completed by the end of the year. China Unicom plans to conduct 5G trial commercial deployment nationwide in 2019.
Source: Google, Essence Securities
In the 5G era, communication PCB boards have extraordinary potential
Prismark data shows that from 2009 to 2016, the proportion of communications in the field of communications increased significantly from 22% to 29%, and gradually replaced computers as the largest field of PCB applications. With the rapid development of communications technology and the future commercialization of 5G, PCB The application in the communication field will be further deepened. The future growth point of the PCB industry, in addition to automotive electronics and new energy vehicle catalysts, 5G applications also have extraordinary potential. The 5G era will affect the future development trajectory of the entire communications industry and the consumer electronics industry. With the advancement of 5G, the increase in frequency bands requires more radio frequency components. The increase in the number of radio frequency front-end components increases the demand for PCBs. At the same time, high-speed and large-capacity have become the development trend of the PCB industry. More stringent requirements are put forward on frequency and number of layers. Core equipment The number of high-speed PCB layers reaches more than 40, and the industry technology will be further differentiated and refined. OFweek predicts that by 2019 at the latest, the PCB industry will usher in revolutionary innovation, and the entire industry chain will undergo tremendous changes.
Analysis of E PCB Application Fields from 2009 to 2016
(Source: Prismark, Essence Securities)
PCB products for wireless communication base stations
(Source: Shennan Circuit)
We review the past two communication technology upgrades, the capital expenditures of the three major operators, and the output of mobile communication base station equipment: In 2009, the reorganization of China’s telecommunications industry completed the successful construction of 3G networks, wireless base stations, transmission equipment, network equipment and other communication equipment Production increased significantly, and total capital expenditure increased significantly to 318 billion yuan; 4G licenses were issued at the end of 2013; 4G networks were gradually popularized in 2014; 2015 was the peak of 4G investment and capital expenditure reached 438.6 billion yuan, which greatly boosted base station antennas and filters Market: 2016 and 2017 are in the late 4G peak investment period, and the capital expenditure of operators has declined. In 2018, we maintained a relatively optimistic attitude. China Mobile announced the 2017-2018 cellular IoT base station investment budget of 39.5 billion yuan. At the same time, China Unicom raised 70 billion yuan in funds raised by the mixed reform. The 5G era is expected to start a new round of investment boom, when base station antennas and filters are expected to usher in rapid growth again.
2006-2017E annual capital expenditure of the three major operators (100 million yuan)
(Source: Wind, Essence Securities)
PCB requirements in the communication field are divided into sub-fields such as communication equipment and mobile terminals. Communication equipment is mainly used for communication infrastructure for wired or wireless network transmission, including communication base stations, routers, and switches. Communication equipment mainly uses high-layer PCB boards, of which layers 8-16 account for about 42%, and mobile terminals are mainly HDI and flexible boards. Domestic telecommunications PCB board manufacturers are dominated by Hudian and Shennan Circuits. In the first half of 2016, Shennan Circuits achieved a main business income of 1.354 billion yuan, with a gross profit margin of 18.59%. Hudian’s revenue was 1.394 billion in the first half of 2017. With a gross profit margin of 17.86%, Hudian said that although the peak period of 4G construction has passed and 5G is not yet mature, the company’s corporate communications board business still maintains steady growth. In the future, with the gradual maturity of 5G technology and China's leading position, domestic leading PCB board companies are expected to usher in a new wave of development peaks.
The proportion of various PCB applications in the field of communication equipment and mobile terminals
2013-2016H1 average price of PCB board (yuan/square meter)
5V 2.4A Usb Charger,5V2.4A Adapter Usb Charger,Ul Usb Wall Charger,Ul 60950 Usb Wall Charger
Guangdong Mingxin Power Technologies Co.,Ltd. , https://www.mxpowersupply.com