5G base station PCB amount doubled increase

5G base station PCB amount doubled increase

2019 is the beginning year of the 5G industry, and the explosive growth of the 5G industry has also brought new momentum to the PCB field. With the iteration of 5G technology, the product structure of PCBs has also diverged. In the current PCB market, multilayer boards still occupy the mainstream position. With the rapid development of technology in the electronic circuit industry, the integrated functions of components are becoming more and more extensive. The high-density requirements of PCBs for electronic products are more prominent, and high-end PCB products such as high multilayer boards gradually occupy the dominant position in the market. If estimated from the demand, the price and quantity of PCBs for 5G base stations will double, which will strongly boost the demand for PCB use. Well-known PCB listed companies such as Shanghai Electric Power Co., Ltd., Shennan Circuit, Shengyi Technology and others are worthy of attention.

5G substrates have fully exploded, PCB usher in new growth momentum

The Chinese name of PCB is printed circuit board, also known as printed circuit board. It is an important electronic component, a support for electronic components, and a carrier for the electrical connection of electronic components.

The downstream of the PCB industry covers almost all electrical circuit products. The most core and largest output applications include communication equipment, computers, consumer electronics and automotive electronics. With the development of human society towards electrification and automation, the application scope of PCB is becoming wider and wider, and there is no other alternative for the time being.

      According to NTI data, in 2016, the number of global PCB companies reached as many as 2,800, and mainland China accounted for half of them. In addition, local raw material suppliers and special equipment manufacturers reached as many as 2,300. However, the largest number of the top ten manufacturers in the world is Taiwan-funded enterprises. Although there are many mainland PCB manufacturers, they are small in scale and low in concentration.

Previously, for the domestic PCB industry, the number of companies was large but the revenue share was not the world's first. Specific data shows that in 2016, mainland China entered the top 100 most, with 45 companies, accounting for 39.8% of the world's total; but the total revenue was only 10.362 billion US dollars, accounting for only 20.4%. With the new wave of global electronic industry capacity transfer represented by the industrial transfer of the PCB and integrated circuit industries, mainland manufacturers are ushering in growth opportunities. As of August 31, the publication of the electronics industry mid-end report ended. The revenue of the 19H1 industry was 976.376 billion yuan, an increase of 13.73% year-on-year, which was the same as the growth rate of the same period last year. . The comprehensive layout of 5G base materials such as flexible boards, high-end high-speed materials, PCBs, etc., benefit from the flexibility of 5G and the certainty of domestic substitution. 5G base station PCB price doubled

    In recent years, 5G has become the new main force driving the growth of PCB business. From the perspective of product structure, multilayer boards still dominate the current PCB market. With the rapid development of technology in the electronic circuit industry, the integrated functions of components are becoming more and more extensive, and the high density requirements of PCBs for electronic products are more prominent. High-end PCB products such as high multilayer boards, flexible boards, HDI boards and packaging substrates are gradually occupying Market dominance.

From the perspective of downstream application fields, due to the wide range of applications of PCB products, its periodicity is less affected by a single industry, which mainly changes with the fluctuation of the macro economy and the overall development status of the electronic information industry. The overall growth rate of PCB follows the macro economy. If estimated from the demand, the price and quantity of PCBs for 5G base stations will double, which will strongly boost the demand for PCB use. Guosheng Securities expects that based on the comparison of 4G and 5G, the number of base stations will be 1.1 to 1.5 times that of the current 4G base stations, and the construction of the number of micro-stations will exceed 9 million. At the same time, the PCB value of the 5G base station is expected to be about 12,500 yuan, which is about 3 times that of the 4G base station used in the past.

Haitong Securities (15.080, -0.08, -0.53%) electronics industry research judges that in the future, the market share of multilayer boards will remain the first in the market, providing important support for the overall development of the PCB industry; flexible boards, HDI The proportion of high-tech PCBs such as boards and packaging substrates will continue to increase and become the mainstream of market development.

 PCB leader this year's performance is gratifying

Many A-share PCB leaders have accelerated their performance growth this year. Hudian mainly produces PCB boards for Huawei's base stations and other products. Since the construction of 5G infrastructure has not been fully carried out, 2018 was originally a year for operators to invest less. In 2019, the first year of 5G, the performance of Hudian shares was gradually realized. According to the 2019 first quarter report, the company's communications market board business revenue in the first quarter was approximately 970 million yuan, an increase of approximately 25-30% year-on-year, and a gross profit margin of 27.50%, an increase of more than 5 percentage points year-on-year.

In addition to Huawei, in fact, Shanghai Electric has another big customer that cannot be ignored, that is Cisco. As one of the world's largest suppliers of communications products, Cisco is Huawei's largest competitor in the communications field.

Shennan Circuit is an old revolution newly listed in 2017, and is now one of the leading companies in PCB. According to the 2018 first quarter report of Prismark, Shennan Circuit ranked 21st among global PCB companies.

According to the 2018 annual report, the optimization of the PCB product structure offset the negative impact of the ramping of the production capacity of the Nantong plant, and the gross profit margin increased by 0.71 percentage points year-on-year. Revenue of packaging substrates increased by 25.52% year-on-year, and gross profit margin was 29.69%, an increase of 3.5 percentage points year-on-year, mainly benefiting from the rapid growth and proportion increase of fingerprint and RF module products. The increase in the demand for products in the communications sector has contributed to a 27.08% year-on-year increase in the combined revenue of electronic equipment.

 Shennan Circuit's 2019 interim report released in August showed that its operating income was 4.79 billion yuan, an increase of 47.9% year-on-year; the net profit attributable to shareholders of listed companies was 471 million yuan, an increase of 68.02% year-on-year. Customer recognition has been further improved. The top five customers of Shennan Circuits accounted for 40.77%, and they have also won Huawei's "Golden Core Supplier" for six consecutive years. There is also Shengyi Technology. In the first half of 2019, the number of copper clad laminates sold by Shengyi Technology increased by 4.02% year-on-year, and the number of prepregs sold increased by 2.13% year-on-year. However, the total sales revenue of these two products fell by 2.32% year-on-year. The phenomenon of rising product prices and falling prices. It is worth noting that although the unit price of the product has declined, the gross profit margin of Shengyi Technology's copper clad laminate and adhesive sheet business has increased, increasing by 4.4 percentage points year-on-year to 22.96%. The main reason for the increase in gross profit margin is the reduction in raw material costs and proper control of unit manufacturing costs, and some 5G high-frequency copper clad laminate products were shipped in the first half of the year.

      Oneseine Technology Co., Ltd., since its establishment in 2008, has been focusing on positioning high-precision multilayer circuit boards and HDI circuit boards, express prototypes and mass production. Products are widely used in high-tech fields such as communications, medical, aerospace, industrial control, automotive electronics, computer peripheral products, and professional colleges. With strong strength, stable quality and fast delivery time, it has been widely recognized by customers and the same industry. It successfully established the "ONE" brand and became an excellent manufacturing enterprise for domestic and foreign PCB circuit board Allegro and multilayer circuit board mass production. The company has been selected as "Shenzhen High-tech Enterprise" and "National High-tech Enterprise"a