Established in 1984, the company has been building itself into a world-class electronic circuit integrator and a leading domestic PCB company for more than 30 years.From the console board business, thanks to the rise of China's communications equipment manufacturers, the company's communications sector PCB quickly become bigger and stronger.In 2017, the company's revenue was about 5.7 billion yuan, accounting for 1.28% of the global market share, ranking 21st, accounting for 2.55% of the Chinese market share, and ranking 1st among domestic enterprises.The company has significant advantages in high-density and high-multi-layer PCB products, which can realize products of up to 100 layers and thickness diameter ratio of 30:1, which is much higher than the average technical capacity of the industry.
How can shennan electric circuit create "China first" and deeply analyze the three core capabilities of the company
The company is the first in domestic PCB, and in-depth analysis of its three core advantages: 1) the "national team" in the PCB field has advantages in policy, capital, talent and other aspects, helping the company to become the leader of China's PCB.2) years of deep cooperation with key communication equipment suppliers in China, with a revenue ratio of more than 40%, high customer stickiness, and developed 5G products years in advance, with the first-mover advantage of "5G track".3) the company's strategic positioning is to "drive profit improvement with advanced technology". Over the years, the company has continued to make high proportion of research and development investment, which helps the company obtain numerous "technology commanding heights", thus obtaining high product prices and excellent financial indicators.
Hold the industry moving east, shennan circuit has "5G+ package base board" two high quality track
With the acceleration of global PCB industry transfer to China, China's PCB output value accounted for more than 50% globally in 2017.The company adheres to the eastward trend of the industry and accelerates production capacity construction.
In order to meet the explosion of demand for 5G high-end boards such as commercial high frequency and high speed, and drive the demand for encapsulated substrates driven by the domestic substitution trend of China's semiconductor industry, the company has built production bases in wuxi and nantong through fund-raising projects, and added the production capacity of 340,000 square meters per year for general circuit boards and 600,000 square meters per year for encapsulated substrates.At the same time, the company continued to upgrade equipment in the longgang factory to improve production output. It is estimated that the company's total production capacity will reach 2.9 million square meters in 2020, with a compound growth rate of 22%.
The layout of 5G ushered in the space for growth, with capacity matching with demand entering the boom-upcycle and giving an "overweight" rating
As the environmental protection requirements become stricter, the concentration degree of behind production capacity clearing PCB industry keeps increasing.With the commercialization of 5G and the demand for high-speed and high-frequency products increased along with the new application demand of downstream PCB, the capacity of the company's fund-raising project is gradually released, with a large space for growth.It is estimated that the company's revenue in 2018-2020 will be 68/87/11 billion yuan, and the net profit will be 6.06/7.89/1.057 billion yuan, and the company will be rated as overweight, corresponding to the high-quality company with an upward business cycle and sustained and steady growth in 2018.