chinafastprint's profit increased sharply in the first quarter! Become Samsung's only mainland IC carrier pcb board supplier

chinafastprint's profit increased sharply in the first quarter! Become Samsung's only mainland IC carrier pcb board supplier

On April 26, chinafastprint (002436) released its first quarter 2019 performance report. During the reporting period, the company's operating income was 852 million yuan, a year-on-year increase of 6.09%; net profit attributable to shareholders of listed companies was 37.03 million yuan, a year-on-year increase of 79.84%, and earnings per share were 0.02 yuan.

Judging from the quarterly report, the company has achieved a substantial increase in net profit attributable to shareholders of listed companies by nearly 80%. The main reason for the growth was due to improved operations of subsidiaries and significant year-on-year growth in sales revenue from IC packaging substrate business.

Beginning in 2018, chinafastprint, while focusing on the development of its main business, strengthened internal management, fully implemented cost reduction and efficiency enhancement, and vigorously promoted the improvement of subsidiary operations. Finally, in the first quarter of 2019, some subsidiaries turned losses into profits. .

In 2018, chinafastprint’s IC carrier board business achieved a sales scale of 236 million and passed Samsung's certification, becoming the only mainland supplier of IC carrier boards for Samsung storage. In the major segment of IC substrate industry, chinafastprint currently has a production capacity of 120,000 square meters per year. The expansion of IC substrate production capacity initiated in 2018 will help the company further expand its production capacity to approximately 220,000 square meters per year. It is worth mentioning that chinafastprint is currently one of the few domestic-funded companies that can mass produce IC substrates. It focuses on storage and is also the first manufacturer to make breakthroughs in the storage field for international customers.

Due to the complex process of IC packaging substrates and the high barriers to entry, chinafastprint’s IC substrate business has always been the focus of the organization’s attention. Guohai Securities believes that chinafastprint has established a firm foothold in the high-end business field of IC substrates, and has truly entered the positive track of growth, and is no longer just staying in the stage of anticipation or "story". Everbright Securities believes that due to the relatively high technical difficulty of IC substrates, it will take a long time for other manufacturers to enter this field for technical reserves and capacity ramping. chinafastprint will have a first-mover advantage for a relatively long period of time.

In 2019, 5G large-scale construction is approaching. As a leading enterprise in the design and manufacturing of domestic printed circuit board prototypes, express shipments, and small-batch boards, chinafastprint will usher in new growth opportunities for its PCB business. Coupled with the continuous R&D investment and personnel introduction in the military products business of chinafastprint, the product line has been continuously enriched, the productization capability has been significantly improved, and the operating conditions have continued to improve. The beautiful performance in the first quarter gave chinafastprint a good start. It is believed that chinafastprint will usher in more performance growth in 2019.