On March 16, Avary Holding (Shenzhen) Co.Limited(002938) ( Avary Holding (Shenzhen) Co.Limited(002938) , SZ) released the annual report of 2021. In 2021, the company achieved an operating revenue of about 33.315 billion yuan, an increase of 11.6% year-on-year; The net profit attributable to the shareholders of the listed company was about 3.317 billion yuan, a year-on-year increase of 16.75%.
The reporter of the daily economic news noted that from the perspective of specific business, the operating revenue of Avary Holding (Shenzhen) Co.Limited(002938) the communication board products decreased slightly in 2021; The operating revenue of consumer electronics and computer boards increased by about 43.57%.
In addition, the gross profit margin of Avary Holding (Shenzhen) Co.Limited(002938) decreased slightly in 2021. According to the 2021 annual report previously released by Shennan Circuits Co.Ltd(002916) ( Shennan Circuits Co.Ltd(002916) , SZ), another company in the industry, the company also experienced a decline in gross profit margin in 2021.
“The impact of the epidemic on the supply side still exists, the supply chain circulation of the industrial chain is not smooth, and the supply shortage and price rise of bulk commodities, raw materials, chips and various electronic components have formed a certain cost pressure on middle and lower reaches enterprises.” Shennan Circuits Co.Ltd(002916) means.
consumer electronics and computer boards drive revenue growth
Avary Holding (Shenzhen) Co.Limited(002938) 2021 annual report shows that the operating revenue of the company’s communication board in 2021 was about 21.983 billion yuan, a slight decrease of 0.03% year-on-year; The operating revenue of consumer electronics and computer boards was about 11.08 billion yuan, a year-on-year increase of 43.57%; Other businesses achieved an operating income of about 260 million yuan, a year-on-year increase of 74.12%.
“In 2021, the company’s communication board business achieved a sales revenue of 21.983 billion yuan, basically the same as that of the previous year. Under the condition of maintaining stable revenue, the company increased the proportion of high value-added products by optimizing the product structure, and the gross profit margin of communication board business increased by 0.16% over the previous year.” Avary Holding (Shenzhen) Co.Limited(002938) means.
In view of the reasons for the growth of consumer electronics and computer boards, Avary Holding (Shenzhen) Co.Limited(002938) said that it was mainly due to “the impact of the rise of remote economy brought by the epidemic and the mass production of the company’s new product Huai’an ultra-thin circuit board”. Other businesses mainly contribute to the revenue of automotive servers and boards for other products.
The reporter of the daily economic news noted that on the whole, the gross profit margin of Avary Holding (Shenzhen) Co.Limited(002938) in 2021 decreased compared with the previous year. According to the data, the gross profit margin of Avary Holding (Shenzhen) Co.Limited(002938) in 2021 was 20.39%, while that in 2020 was 21.26%. Among them, the decline of gross profit margin of consumer electronics and computer boards is an important reason for the decline of Avary Holding (Shenzhen) Co.Limited(002938) overall gross profit margin.
\u3000\u3000 “The company’s PCB products are mainly made of electronic parts, copper foil substrate, steel sheet, back glue, covering film, gold salt, semi solidified film, ink, copper ball and copper powder. The fluctuation of raw material price will directly affect the gross profit margin of the company’s products; at the same time, the company needs a lot of power in production, and the power supply and power price are also affected by the fluctuation of energy supply and energy price.” Avary Holding (Shenzhen) Co.Limited(002938) means.
Avary Holding (Shenzhen) Co.Limited(002938) means: “Since 2021, global energy and bulk commodity prices have continued to rise. At the same time, the supply chain of electronic components represented by chips has continued to be in short supply. The company has avoided the impact of this supply chain shortage by establishing close contacts with suppliers. However, the Russian Ukrainian war in early 2022 once again triggered sharp fluctuations in the global energy and bulk commodity market prices, including the shortage of raw materials And energy prices are very uncertain, and the company faces the risk of shortage of raw materials and energy and rising prices. “
rapid capacity expansion
According to the report of prismark in the fourth quarter of 2021 quoted in Shennan Circuits Co.Ltd(002916) 2021 annual report, the output value of global PCB industry denominated in US dollars increased by 23.4% year-on-year in 2021 due to the rise of commodity prices, the depreciation of US dollars and the increase of terminal demand.
Prismark predicts that in the medium and long term, the industry will maintain a stable growth trend. From 2021 to 2026, the global PCB output value is expected to grow at a CAGR of 4.8%. From a regional perspective, the PCB industry in all regions of the world shows a sustained growth trend. Among them, when the base number of the mainland is high in 2021, the compound growth rate will still reach 4.6%, and the growth will remain stable. From the perspective of product structure, packaging substrate, 8-16 layer high-rise multi-layer board and HDI board will still maintain a relatively high growth rate, and the compound growth rate in the next five years will be 8.6%, 4.4% and 4.9% respectively.
“In the face of the rapid development of the industry, in addition to keeping up with the market trend in technology research and development, the company also actively expands production capacity, so as to grasp the development opportunities of the industry and continuously increase the driving force for the development of the company.” Avary Holding (Shenzhen) Co.Limited(002938) means.
In 2021, Avary Holding (Shenzhen) Co.Limited(002938) ‘s capacity expanded rapidly. In terms of flexible board, the Avary Holding (Shenzhen) Co.Limited(002938) raised investment project Huai’an flexible multilayer printed circuit board expansion project has been invested; The soft board expansion investment plan planned at the beginning of 2021 has also been put into operation, and the phase I investment plan of Taiwan Kaohsiung FPC project is also being continuously promoted. In terms of module assembly, the Indian park has been put into production in the second half of 2021, and the second phase of Shenzhen Second Park is also being promoted as planned. In terms of hard board, Huai’an ultra-thin circuit board investment plan has been mass produced, and the production capacity is planned to be 93000 square meters / month.
Previously, in investor research, some investors also asked whether the company would have depreciation pressure due to the large expansion of production in recent years Avary Holding (Shenzhen) Co.Limited(002938) said that whether there is depreciation pressure is related to the level of capacity utilization. Low capacity utilization will face depreciation pressure, otherwise there will be good performance elasticity.
For the layout of future production capacity, Avary Holding (Shenzhen) Co.Limited(002938) said that it would continue to cultivate PCB and related industries, further improve the product layout of one avery (one-stop supply), and enhance the global market share of high-end HDI and hard board products, so as to consolidate and enhance the company’s position in the PCB industry.
