Contemporary Amperex Technology Co.Limited(300750) Jinlu electronics, the largest PCB supplier, successfully passed the gem IPO on February 18 and is about to land in a shares. Jinlu electronics is mainly engaged in the R & D, production and sales of printed circuit boards (PCBs). Its products are used in automotive electronics, communication electronics, industrial control, consumer electronics, medical devices and other fields. Jinlu electronics plans to raise 785 million yuan in this IPO, mainly for the construction of PCB supporting new energy vehicles.
advantages in the field of new energy vehicles
Jinlu electronics focuses on the R & D, production and sales of PCB. The company focuses on the Automotive PCB market, especially in the PCB application field of new energy vehicles. Its products cover core components and supporting facilities such as battery management system (BMS), motor controller, DC / DC converter, on-board charger, Adas, charging pile and so on, It is the largest PCB supplier of Contemporary Amperex Technology Co.Limited(300750) the world’s largest battery manufacturer of new energy vehicles, and has a strong competitive advantage in the field of BMS of new energy vehicles.
Jinlu electronics has two major production bases in Qingyuan, Guangdong and Anlu, Hubei, covering a total area of about 450 mu. The planned annual PCB production capacity is 5.2 million m2. At present, it has an annual production capacity of 2.2 million m2. At the same time, Jinlu electronics is a national high-tech enterprise and Guangdong circuit board engineering technology research and development center.
In terms of performance, from 2018 to the first half of 2021, Jinlu electronics achieved revenue of 528 million yuan, 609 million yuan, 792 million yuan and 576 million yuan, and the net profit attributable to the parent company was 39.6865 million yuan, 49.1482 million yuan, 67.3951 million yuan and 46.4446 million yuan respectively. The profitability of the company continued to improve.
In terms of products, the main business income sources of Jinlu electronics include three items: single / double-sided board, multilayer board and processing services. During the period, the income proportion of single / double-sided board remained at about 40%, while multilayer board has always been the largest income source of the company, accounting for about 60%.
Jinlu electronics expects the revenue to be 1.3 billion yuan to 1.33 billion yuan in 2021, with a year-on-year increase of 64.12% to 67.90%, and the net profit attributable to the parent company is expected to be 94 million yuan to 99 million yuan, with a year-on-year increase of 39.48% to 46.89%. The performance of Jinlu electronics is rising year by year, mainly due to the strong demand of downstream customers and the release of new production capacity in the second half of 2020. The company’s operating revenue and net profit have increased greatly.
The prospectus shows that the actual controllers of Jinlu electronics are Li Jilin and Zhou min. Among them, Li Jilin directly holds 28.87% of the shares of the company and indirectly holds 3.62% of the shares of the company through kaimeilu investment, which is the largest shareholder of the company; Zhou Min, Li Jilin’s spouse, holds 6.87% of the shares of the company. They jointly control 39.36% of the shares of the company and are the actual controllers of the company.
fierce competition in China
PCB is the basic component of electronic products. Almost all electronic equipment should use PCB, so that the PCB manufacturing industry can develop stably for a long time.
China is the world’s largest PCB producer and one of the regions in the world that can provide the largest PCB production capacity and the most complete product types. In 2019, the overall output value of China’s PCB industry reached 32.9 billion US dollars, accounting for 53.73% of the total output value of the global PCB industry. It is estimated that by 2024, the output value of China’s PCB industry will reach US $41.8 billion, accounting for 55.07% of the total output value of the global PCB industry.
There are about 1500 PCB manufacturers in China, and the market competition is fierce. The competition mainly focuses on technical strength, product stability, product delivery date, price and so on. By the end of 2020, there were 29 PCB listed companies listed in China. Although Jinlu electronics has developed into the largest PCB supplier of Contemporary Amperex Technology Co.Limited(300750) , its operating revenue and net profit in 2020 ranked 26th and 26th respectively compared with listed companies in the same industry.
Jinlu electronics focuses on the Automotive PCB market, especially in the PCB application field of new energy vehicles. In the first half of 2021, the revenue of automotive electronics accounted for 45.85% of the total revenue. In the field of automotive electronics, Jinlu electronics has accumulated high-quality customers in the field of new energy vehicles such as Contemporary Amperex Technology Co.Limited(300750) , Gotion High-Tech Co.Ltd(002074) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , Qingdao Tgood Electric Co.Ltd(300001) , Yutong Bus Co.Ltd(600066) , Geely Automobile, Shinry Technologies Co.Ltd(300745) , Zhuhai Enpower Electric Co.Ltd(300681) . In the field of communication, Jinlu electronics has direct or terminal well-known customers such as Huawei, Zte Corporation(000063) , Fiberhome Telecommunication Technologies Co.Ltd(600498) , Cig Shanghai Co.Ltd(603083) ; In the field of industrial control, it has direct or terminal well-known customers such as Honeywell, abb, Qingdao Topscomm Communication Inc(603421) , Wuhan Jingce Electronic Group Co.Ltd(300567) .
