[Industry] PCB industry will usher in the peak season in the second and third quarters

PCB, the industry's steady growth, concentration, and the peak season in the second and third quarters.

PCB is the mother of electronic products, widely used, the global PCB industry grows steadily, increasing by 8.6% in 2017, and forecasting a growth of 7.3% in 2018. The global PCB market will reach US$68.8 billion in 2022 and a compound growth of 4.0% in 2017-2022. Communication base stations, automobiles and consumer electronics will grow rapidly. The average annual compound growth rate will reach 4.9%, 4.8% and 4.7% in 2017-2022. The advent of the 5G era will drive a new round of development in the electronics industry and benefit from the demand of emerging industries. The global PCB industry will continue to shift to mainland China and the industry concentration will be further enhanced. We are optimistic about the leading companies in the PCB industry.

Emerging demand-driven, PCB industry growth momentum is sufficient: 5G base station structure upgrade, base station PCB demand area is expected to increase by 4-5 times, predicting 2017-2021 PCB base station PCB compound growth rate will reach 6.9%; electric vehicle PCB bicycle value several times For traditional fuel vehicles, the traditional fuel vehicle bicycle PCB value is 60 US dollars, while the electric vehicle PCB bicycle value reaches 400 US dollars. It is predicted that the global electric vehicle production will reach 6 million units in 2022; smart phone innovation will promote the value of single-machine PCB continuously, iPhone Xs Max The board uses up to 27 pieces, including 3 SLP motherboards and 24 soft boards, with a predicted value of more than 70 US dollars; mobile phone 3/4, 5G mobile phones, folding mobile phones, wearable devices, etc., the number of PCBs will be significantly improved. The industry's future growth momentum is sufficient.

The market concentration has further improved. The larger ones are Evergrande and the strong ones are Hengqiang: According to Prismark data, the world's top 30 PCB companies in 2011 accounted for 49.8% of the global total, and increased to 60.5% in 2017. The market concentration is significantly improved. . China's PCB leading companies' market share increased significantly, Pengding Holdings increased from 2.7% in 2011 to 6.1% in 2017, and Shennan Circuit increased from 0.6% in 2011 to 1.4% in 2017. Shennan Circuit from 2011 The 0.37% increase to 1.06% in 2017. The advantages of the PCB industry are obvious. The new production line has high automation, few users, advanced technology and high production efficiency. The production capacity of the old production line will be eliminated naturally. We believe that with the tightening of environmental protection policies and financial pressures in the future, the living environment of SMEs will become more and more difficult, resources will be tilted to leading companies in the industry, and market concentration will be further enhanced.

The global PCB industry continues to shift to mainland China: As the largest producer of the global PCB industry, China's share of the global PCB industry's total output has increased from 31.18% in 2008 to 50.53% in 2017. It is predicted that the future will be further transferred to China. It is estimated that China's PCB output value will reach 35.6 billion US dollars in 2022, the global proportion will reach 51.9%, and the output value of the Americas, Europe and Japan will continue to decline.

We believe that although the PCB industry's compound growth rate is only 4% in the next few years, the market space is large. In 2018, the global scale is 63 billion US dollars. In addition, the industry is further shifting to China. Foreign companies gradually give up, while domestic SMEs are environmentally friendly. And capital pressure, will be acquired to integrate or withdraw from the market: excellent management, advanced technology, competitive landscape in the application field, and leading companies that continue to develop high-end products will continue to benefit.