PCB Industry Interim Report

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Time of issue:2020-09-14 12:00
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(Summary description)As of August 17, 7 A-share printed circuit board (PCB) industry companies including Pengding Holdings and Shengyi Technology have issued mid-year reports for 2020. In the first half of the year, the net profit attributable to the parent has increased year-on-year. In addition, 9 companies have disclosed their performance forecasts for the first half of 2020, and more than 60% of their performances are positive.

PCB Industry Interim Report

(Summary description)As of August 17, 7 A-share printed circuit board (PCB) industry companies including Pengding Holdings and Shengyi Technology have issued mid-year reports for 2020. In the first half of the year, the net profit attributable to the parent has increased year-on-year. In addition, 9 companies have disclosed their performance forecasts for the first half of 2020, and more than 60% of their performances are positive.

Categories:Industry News
Author:
Origin:
Time of issue:2020-09-14 12:00
Views:

As of August 17, 7 A-share printed circuit board (PCB) industry companies including Pengding Holdings and Shengyi Technology have issued mid-year reports for 2020. In the first half of the year, the net profit attributable to the parent has increased year-on-year. In addition, 9 companies have disclosed their performance forecasts for the first half of 2020, and more than 60% of their performances are positive.

On the whole, consumer electronic boards such as automotive electronics, home appliances, and mobile phones have received a greater impact. "New infrastructure" areas such as 5G communications, base stations, and data centers are the main development directions in the future.

Low- and mid-end PCB manufacturers are greatly affected, and liquidity risks and demand for technological iteration accelerate the industry reshuffle. The industry concentration is expected to increase, and leading companies may benefit.

Performance is generally good

In the PCB industry, Pengding Holdings, Shengyi Technology, Suntak Technology, Bomin Electronics, Huazheng New Materials, Guangdong Junya, and Tianjin Purin have disclosed in the 2020 mid-year report. The above-mentioned seven companies all achieved profitability in the first half of 2020, and their net profit attributable to their parents increased year-on-year.

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Figure 1: The PCB industry has released the company's performance in the 2020 interim report

According to the scale of revenue, Pengding Holdings is the world's largest PCB manufacturer, and its customers include Apple, Google, Facebook, SONY, Huawei, OPPO, VIVO, etc.

In the first half of 2020, Pengding Holdings' revenue and net profit attributable to its parent were 10.115 billion yuan and 792 million yuan, an increase of 8.31% and 29.92% year-on-year, respectively. Among them, in the second quarter of 2020, Pengding Holdings' revenue and net profit attributable to its parent were 6.145 billion yuan and 484 million yuan, an increase of 20.46% and 14.05% year-on-year respectively.

Significant growth in shipments of tablets, notebook computers and other products promoted the performance of Pengding Holdings. In the first half of 2020, Pengding Holdings achieved sales revenue of 3.647 billion yuan in consumer electronics and computer board products including tablets and other products, a year-on-year increase of 23.12%.

Shengyi Technology has disclosed the highest profit among the PCB industry companies in the 2020 mid-year report.

In the first half of 2020, Shengyi Technology's revenue increased by 15.16% year-on-year to 6.879 billion yuan; net profit attributable to the parent increased by 31.33% year-on-year to 826 million yuan. Among them, the revenue of Shengyi Technology in the second quarter was 3.807 billion yuan, a year-on-year increase of 17.58%; the net profit attributable to the parent was 487 million yuan, a year-on-year increase of 28.20%.

Shengyi Technology stated in the interim report that the electronics industry has been affected by the macro economy, and demand has fallen, especially automotive electronics and home appliances. However, the communications sector driven by 5G commercial applications has performed better.

Among the PCB industry chain companies that have not yet announced the 2020 mid-year report, 9 companies have disclosed their performance forecasts for the first half of 2020, of which over 60% have good performance, including Shennan Circuits, Dongshan Precision, Xingsen Technology, Shenghong Technology, Sihui Fushi and Mingyang Circuit.

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Figure 2: PCB industry company performance forecast for the first half of 2020 (total market value as of August 17, 2020)

Chaohua Technology expects a net profit loss of 38 million yuan to 43 million yuan in the first half of 2020. The company's industrial chain has suffered a certain impact. The downstream demand, especially the customer demand for copper clad laminates and printed circuit boards, is less than expected. The company's operating income The year-on-year decline was relatively large.

Danbang Technology expects the net profit attributable to the parent in the first half of 2020 to be 600,000-6.6 million, a year-on-year decrease of 50%-96%. Performance changes have resulted in a decline in operating income due to global impacts. On the whole, the performance of the top companies is improving. The total market value of the two companies whose performance has been affected is less than 10 billion yuan. Small and medium-sized companies face greater challenges in the epidemic.

According to the prospectus disclosed by Concord Electronics in January 2020, there are currently more than 2,800 PCB companies in the world and about 1,500 in mainland China. The overall industry concentration is at a low level. According to data from Prismark, a professional consulting organization in the electronic information industry, the market share of the top 30 PCB manufacturers in global output value in 2018 was 60.8%, which may promote the increase in industry concentration.

Five years later, the output value of the PCB industry is expected to exceed 75 billion US dollars. China is the largest production base of PCB, accounting for more than 50% of the global output value.

According to Prismark data, the global PCB output value in 2019 was 61.311 billion US dollars, a year-on-year decrease of 1.7%. Among them, the PCB output value of mainland China reached 32.942 billion US dollars, a slight increase of 0.7%, and it was the only region to increase in 2019.

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Figure 3: 2014-2019 output value scale of the global PCB industry (data source: Prismark)

Prismark predicts that the global PCB output value will grow to 75.846 billion U.S. dollars by 2025. The compound growth rate of global PCB output value from 2019 to 2024 is about 4.3%, and that of mainland China PCB output value is about 4.9%; the global PCB market will maintain in the next five years Moderate growth, Internet of Things, automotive electronics, Industry 4.0, cloud servers, storage devices, etc. will become new directions driving the growth of PCB demand.

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