In the market downturn, A shares "printed circuit board" board sector is highly sought after by capital, many stocks have hit recent highs.
The price increase is the direct trigger for the outbreak of the PCB sector, and the leading companies in the PCB industry will have greater development opportunities.
Capital pushes the sector into reverse
On the same day of July 18, the concept stocks of printed circuit boards rose by the daily limit. Among the 22 concept stocks, ultrasonic electronics, jin 'an guoji, hua zhengxin materials, tianjin prin, bo min electronics and other stocks rose by the daily limit.
In fact, the printed circuit board sector as early as the second half of June has started gradually, the overall plate is now more than 18 percent higher, far larger.
Analysts at citic securities believe that product price increase is a direct catalyst for the sector, and the deep-seated reasons are the increase of high-end demand in the downstream and the integration opportunity brought by environmental protection, which makes leading companies "strong and strong" and many large PCB factories start the "price increase" mode.
Since July, big PCB factories such as omway electronics and jiantao group have announced price increases, with the price of the entire PCB industry rising by another 10%.
Even as prices continue to rise, factory orders are still too high to make, and delivery times are lengthening.
From the end of 2017, from kunshan city in jiangsu province to zhuhai and Shanghai to shenzhen, strict inspection will lead to production restrictions, which will further push up the price of the entire PCB industry. The overall price increase is expected to exceed 30% by the end of the year.
In addition, since 2017, the listed companies such as chongda technology, xingsen technology, bomin electronics and zhongjing electronics have all carried out plans to acquire and expand their production, gradually increasing their market share.
At present, the market share of the top three domestic domestic top three manufacturers is less than 40%, and the industrial concentration is far lower than that of other countries and regions in the world. In the future, the share of leading companies will have greater room for improvement.
5G commercialized the PCB explosion
As the basic material of electronic products, PCB is the mother of electronic products and has a vast demand market. Its application fields include communication, computer, consumer electronics, automobile electronics, etc.
The current 5G era is getting closer and closer. It will enter initial commercial use in 2019 and be officially commercial in 2020.
It is reported that various application scenarios of 5G require higher connection speed, delay, connection density and so on. 5G radio frequency will introduce Massive MIMO (large-scale antenna array) technology, which needs to use the millimeter wave band with wider spectrum and wider bandwidth for communication.
Compared with the millions of base stations in 4G era, the development of millimeter wave will push the scale of base stations in 5G era to exceed tens of millions.
It can be predicted that with the gradual arrival of the comprehensive commercial era of 5G, the mass construction and upgrading of communication base stations will generate a huge demand for high frequency high-speed boards like PCB, and PCB will meet the need of a new round of upgrading and replacement.
Taking into account the number of base stations and the value of a single base station, 5G base station brings more than 4-5 times more market space for PCB than 4G.
At the same time, 5G network will carry greater bandwidth flow, more investment in routers, switches, IDC and other equipment, and the demand for high-speed PCB/copper clad plates will also increase substantially.
In addition to the increase in demand and consumption, high-performance equipment will adopt higher value-added high frequency (antenna) high-speed (IDC/base station) board materials, which will also bring the increase of added value and consumption of PCB/copper clad plate industry chain.
According to the data, the global PCB industry is accelerating due to the large increase in demand, and the domestic industry is growing faster.
According to prison mark statistics, the global PCB output value in 2017 was 58.843 billion usd, up by 8.6%.
Among them, China's PCB output value reached 29.732 billion us dollars, up 9.9% year on year.
Prismark prediction, benefit from the communications, computer, consumer electronics and automobile electronics field structural upgrade and the outbreak of the incremental demand, 2016-2021 global smartphone PCB and PCB output growth is 5% - 8%, far higher than other areas of PCB production growth, PCB, the date will last seven years, until 2021, China's PCB industry output value will exceed $50 billion.
Pay attention to investment opportunities of leading enterprises
With the relocation of the global electronics manufacturing center to the mainland, domestic PCB enterprises have entered a period of rapid development, and leading domestic enterprises are expected to continue to move towards the tens of billions level.
As the demand for 5G and automotive electronics increases in the future, high-end PCB leading manufacturers can share the growth dividends of emerging downstream areas.
In the 5G era, domestic companies with the production capacity of high-end products are expected to gradually break through the foreign monopoly, dilute the original cycle attribute, and usher in the double improvement of performance and valuation.