Pcb electronic products demand: Affected by the increase in raw material prices, PCB (printed circuit board) companies are expected to increase prices strongly. Shennan Circuit released an investor activity record sheet on June 4 to disclose that the price of some raw materials has risen recently. The company will strengthen communication and negotiation with suppliers and customers to jointly face the pressure of rising material prices. The price of PCB products will be adjusted according to the fluctuation of raw material prices.
PCB upstream raw materials have continued to rise from the end of 2020 to now, overbooking, rushing production capacity, and rushing for raw materials are the norm. The terminal demand remains high, and the supply of raw materials upstream is difficult to solve in the short term. Seeing that the traditional peak season for electronic products is coming, if the demand continues to remain unchanged, it cannot be ruled out that there will be a continued increase in the third quarter.
The basic material of PCB manufacturing is CCL (copper clad laminate), and its upstream is mainly copper foil, glass fiber cloth, epoxy resin and other raw materials. The prices of various raw materials upstream of CCL have continued to rise since 2020, and the prices of the industry chain have risen across the board. For example, copper prices continued to rise, the LME copper price broke the $10,000 mark in May 2021, and the electronic copper foil price rebounded rapidly from the third quarter of 2020, reaching a nearly four-year high in January 2021, from a low The latest price has risen by more than 50%. Commonly used epoxy resin prices have also been on the rise from the third quarter of 2020, with prices surpassing the 2018 price highs in January 2021.
Printed circuit board electronics demand rebounds
Rapid growth of PCBs
PCB is the support of electronic components and is an indispensable part of various electronic products. Since the global epidemic has gradually recovered, the suppressed consumer demand in 2020 has rebounded rapidly, and the PCB industry as a whole has ushered in rapid growth. In the downstream industry, the shipments of notebooks and mobile phones have soared. Among them, the global notebook shipments will reach 200 million units in 2020, a year-on-year increase of 22.5%; A year-on-year increase of 38.4%.
Shipments of downstream products increased, driving PCB electronics demand. Following a year-on-year increase of 6.4% in 2020, the industry research institute raised the PCB industry output value in 2021 to 14% from a previous forecast of an 8.6% year-on-year increase, and the total revenue of the top 40 PCB suppliers increased by 29% year-on-year to $17.8 billion. The market growth drivers in 2021 will mainly come from robust market demand (telecommunications, consumer electronics, electric vehicles, etc.), technology upgrades and supply chain recovery.
PCB demand of communication electronics
Among the subdivided products of PCB, the PCB demand of communication electronics accounts for the largest proportion, reaching 35%; the proportion of PCB demand in LED and medical equipment is the least, accounting for 2% and 5% respectively.
In terms of subdivisions, 5G commercial use has become a new growth point for smartphones. The increase in 5G mobile phone shipments will drive the demand for high-end PCB boards. At the same time, 5G construction will further expand server demand and promote server product upgrades. The server PCB market is expected to continue to expand.
According to the data, after the rapid development before 2017, smartphone shipments declined from 2017 to 2019, but new functions and new models of smartphones are still emerging, and the global and Chinese smartphone industry shipments The volume of smartphones still maintains a relatively large scale, and smartphones still have a high market position in the field of smart terminals. China’s smartphone shipments are expected to be 300 million units in 2021, and global smartphone shipments are expected to be 1.251 billion units in 2021.
Vehicle PCB is also expected to usher in sustained and rapid growth. PCBs have a variety of application scenarios in automobiles. Driven by the trend of electrification, intelligence and light weight, even compared with traditional advanced fuel vehicles, the amount of PCBs used in a single vehicle will be greatly increased. The safety of the car is closely related to the driving process. The impact of the driving process has extremely strict requirements on the pressure bearing capacity of the PCB. In addition, car companies are more sensitive to product performance than price sensitivity. These factors make the average value of vehicle PCBs high.
The performance of 6 concept stocks(pcb electronic products)
It is expected to increase by more than 50%
Statistics show that there are 29 concept stocks in the PCB sector. From the perspective of performance, most of the PCB concept stocks’ operating income in the first quarter of 2021 achieved double-digit growth. Among them, Chaohua Technology’s total operating income doubled year-on-year, and Lihewei , Sino-British Technology, Hongxin Electronics, and Oxycon have all achieved revenue growth of more than 80%.
According to the annual report of Shennan Circuits, the PCB business revenue in 2020 was 8.311 billion yuan, a year-on-year increase of 7.56%, of which data center orders exceeded 1 billion yuan. In the recent survey minutes, Shennan Circuit revealed that the current capacity utilization rate is close to the average level of the overall capacity utilization rate of the company’s PCB business.
In the first quarter of 2021, Pengding Holdings achieved a net profit of 351 million yuan attributable to the parent, a year-on-year increase of 14.14%. According to the ranking data of global PCB companies, the company ranked the world’s largest PCB manufacturer for three consecutive years from 2017 to 2019.
Judging from the consensus forecast of institutions, a total of 16 institutions have given performance forecasts for 2021. Chaohua Technology, Hongxin Electronics, and Guangdong Junya Agency predict that their net profit will double in 2021; Victory Giant Technology, Oxcom, and Sihui Fushi predict an increase of over 50%.