In June, the traditional inventory factors will affect the revenue. We are optimistic that the traditional peak season will come in the second half of the year. The raw material factories of the upper reaches of soft and hard printed circuit boards such as xinyang technology (3144) and dehong industry will grasp the new equipment and expand production capacity, and the benefit will emerge at the end of the month.
Xinyangke produces flexible printed circuit board (FPC) upstream soft copper foil substrate (FCCL), benefiting from smart phones and tablets to drive downstream FPC demand. In may, the revenue of the company bucked the trend to a record high.
The company said it expects to have new capacity by the end of the month as it buys new machines, equipment and clean rooms from factories in Taiwan, which are taking a day off from work to maintain equipment.
Looking ahead to the second half of the year and future FPC prospects, xinyangke started to expand the glue-free (2L) FCCL capacity, estimated to increase capacity by 15% quarterly, and will grow by 50% from now in the first quarter of next year.
Demand from non-apple groups, such as Japan, South Korea and the mainland, was better than expected in the second quarter, he said, especially for smartphones on the mainland.
Compared with the first half of FPC operation has reached the annual peak, the field of Rigid PCB is still weak. For dehong, the upstream electronic glass fiber cloth factory of PCB, we are optimistic that the traditional second half of the year will lead the operation.
Dehong said that the electronic glass fiber cloth steady profit, dexing loss gradually improved, the first quarter has turned to profit from the previous quarter, dexing new capacity after the end of the month of production, is expected to show a single month of profit this season, in the PCB season approaching, operation will turn around, product prices have increased opportunities.