PCB is widely used. Customization and cost control are important industry features:
The main function of PCB is to connect all kinds of electronic components.Due to the large number of downstream industries and huge differences, PCB industry has a very strong customization characteristics, which also leads to a large number of PCB participating manufacturers, the supply pattern is very scattered.At the same time, although there are many PCB production processes, most of them are mature. Technology is not the key to win in the PCB industry, and cost control ability is the core factor that determines profitability.
Overall demand grew steadily, and 5G significantly boosted communication demand:
Prismark estimated that the global PCB industry will grow at a compound annual rate of about 3.2 percent from 2017 to 2022, and that it will reach $68.8 billion in 2022.Communication is the most important downstream application field of PCB. As 5G construction will start from 2019, the total number of acer stations will be about 1.5 times that of 4G, and a large number of supporting micro-base stations will be built, which will significantly increase the overall use of PCB.At the same time, the new demand of high frequency and high speed transmission will bring about a significant increase in the number of PCB layers, materials and processes, and the value of communication board will also be greatly increased.
With the rapid development of domestic PCB, the leading edge is more obvious:
The global PCB industry continues to shift its focus to the Chinese mainland. At present, the output value of the mainland accounts for more than 50%, but it is still mainly the factories set up by foreign companies in the mainland, and domestic enterprises have a large space for development.Domestic enterprises have achieved rapid development through endogenous development and extended merger and acquisition. On the one hand, they have actively raised funds to expand production capacity through IPO, convertible bonds and other means; on the other hand, they have actively acquired poorly managed factories with foreign capital.In the 16th China electronic circuit industry ranking released by CPCA, the revenue of 87 domestic PCB enterprises in 2016 reached 62.074 billion yuan, up 15.93% year on year, and the growth rate was significantly higher than the average level of foreign PCB enterprises.
Investment advice: focus on companies with strong cost control ability and outstanding technical strength
PCB industry has a large market space and rapid growth in 5G and other segmented areas. Mainland funded PCB enterprises are expected to achieve rapid development by using endogenous development and extensional merger and acquisition. For the first time, we have covered the PCB industry and given a "buy" rating.Dongshan precision is the core supplier of apple's soft board, with outstanding technical ability and "buy" rating.Jingwang electronic has outstanding cost control ability, and at the same time develops new categories and expands new production capacity, and gives "buy" rating for the first time;Shennan circuit has been deeply involved in the communication field and actively participated in 5G experiments. It is expected to take the lead in benefiting from 5G construction in the future and give "buy" rating to shennan circuit for the first time.
Macroeconomic downturn affects the prosperity of the industry;Raw material prices erode profitability;Emerging demand, such as 5G, has fallen short of expectations.