The pearl river delta region, the country's largest PCB production base, has been hit by an environmental storm, according to media reports.As of last week, nearly 12,000 environmental law enforcement officers had been deployed in foshan alone, shutting down 793 businesses.
At present, guangdong has over a thousand enterprises ordered rectification, administrative and criminal detention of nearly 100 people.As it involves electroplating, etching and printing, a large number of heavy metal wastewater, solid waste and volatile organic compounds (VOCs) will be produced in PCB manufacturing. The increase of VOCs and the long-term accumulation of VOCs are the "culprits" of frequent smog.Therefore, PCB and related electroplating enterprises become the key areas of environmental supervision.
The industry believes that there are more than 1,500 domestic PCB enterprises, most of which are small and medium-sized enterprises.With the increase of environmental costs and the continuous increase in the price of copper foil for upstream raw materials, small and medium-sized PCB enterprises withdrew due to the shrinking profit margin.With technological and capital advantages, leading enterprises meeting environmental protection standards will gain greater market space and benefit from increased industry concentration.
Related concept stocks:
Shanghai electric power co., LTD. (002463) : as one of the largest PCB manufacturers in China, it grasps the opportunity of emerging in new energy vehicles and 5G industry by improving product structure.
Shenghong technology (300476) : is a leading PCB manufacturer in China, which benefits from the devaluation of RMB due to the high proportion of exports.
Shengyi technology (600183) : capacity release in the second quarter around 4G demand.The company is the leader of upstream copper clad plate, and the contribution rate of 4G business is relatively high. Therefore, it is the most certain variety that benefits from this round of industrial boom.With the completion of the sixth phase expansion of songshan lake in the second quarter, the company's FR4 production capacity is expected to increase by 10%, mainly for 4G base stations. In the second quarter, the withholding of non-eps is expected to reach 0.12-0.15 yuan, highlighting the advantage in valuation.
Chaohua technology (002288) : actively march into flexible circuit board.Taihua meizhou and huizhou hezheng, which were acquired by the company in 2013, will all realize profits, bringing greater growth to the company's endogenous performance.At the same time, huizhou hezheng has already cut into raw materials of flexible circuit boards. The company expects to integrate the downstream into flexible copper clad boards and PCB through industrial chain integration, and acquire and merge related projects.
Hing sen technology (002436) : the IC board cut off the national team, will be conducive to the rapid loading of subsequent boards, and is expected to benefit from the national integrated circuit support policy.Thanks to the expansion of 4G and military products businesses, the company's revenue in the first quarter increased by 57% year-on-year, while its net profit increased by 26% year-on-year. The trend of inflection point is clear, and the growth rate is expected to be above 50% in the second quarter.
Ultrasound electronics (000823) : OGS is progressing well in raising its valuation.PCB still accounts for about 50% of the company's main businesses, and 4G business accounts for a relatively large proportion. In the first quarter, EPS increased by 106% year on year.At the same time, the company OGS business is developing smoothly and is expected to enter the fields such as iwatch and automotive electronics, which will significantly drive the company's valuation.