PCB industry topic report

- Apr 20, 2019-

                The high certainty of PCB industry growth in China will be the core driving force for the growth of domestic PCB enterprises With the continuous development of global electronics, the future demand for 5G, cloud servers, automotive electronics and so on will continue. 

            PCB industry as the "lifeblood" of electronic products is expected to grow steadily with CAGR3.1%.At present, under the global competition pattern, PCB output value in China accounts for 50%.However, from the analysis of enterprise ownership, foreign-funded PCB manufacturers (taiwan-funded, japanese-funded) are still in the leading position, and the future opportunity for mainland PCB manufacturers lies in the large replacement space. 

                The core logic for domestic PCB enterprises to surpass foreign PCB companies in the future: based on the strong demand of China's own brands, take advantage of the cost advantage, have a more firm belief, and continue to "research and development investment" + "capacity expansion".At the same time, foreign enterprises have been in a conservative situation, so the domestic PCB enterprises are expected to achieve replacement and reverse.

            In the following part, we focus on how to compare and evaluate the main business characteristics and competitive advantages of domestic PCB industry core enterprises from the perspective of financial indicators. Horizontal analysis of profitability efficiency index of PCB industry companies To return on net assets, sales, gross margin, sales net interest rates as the main reference index, and assisted by revenue per capita, per capita net income of the listed company profitability analysis of PCB, and with reference to their historical financial index score mechanism, under the profit efficiency index weight: 40 standard, according to the latest annual data, fonda circuit company on profit efficiency has a certain advantage. Horizontal analysis of operating quality index of PCB industry companies The ratio of earnings to cash, accounts receivable to revenue, accounts payable to revenue and inventory to revenue.

           Based on the comprehensive analysis of the company's operating quality and the establishment of a scoring mechanism with reference to its historical financial indicators, under the standard of 40 points for the weight of operating quality indicators, according to the latest annual data, it can be seen that the operating quality of major PCB companies is relatively good and the score difference is relatively small.Chongda technology ranked first, reflecting the company's leading edge in operating quality. 


                 Horizontal analysis of the indicators of risk resistance of PCB industry companies From stock loan-to-value ratio, asset-liability ratio, cash to total assets ratio to measure the company's ability to resist risks, the ability to resist risk index weight 20 points, according to the latest annual data, main PCB industry company has a better ability to resist risks, including eton electronic index scores highest, mainly due to the company in hand holding more cash and asset-liability ratio is low.