Today (January 13), Xiamen Daily reported that Liang Kangdi, deputy general manager of Xiamen Hongxin Electronics Technology Group Inc(300657) R & D center, said that at present, there are too many orders for on-board flexible circuit boards (FPC), and its products have been used in many well-known new energy vehicle brands. Chairman Li Qiang disclosed that the company’s production capacity is continuously expanding, and will increase the R & D and production capacity expansion of new energy vehicle soft board and consumer electronics soft board in the future.
FPC is a kind of printed circuit board (PCB), which is widely used in the fields of communication, consumer electronics and automobile. On traditional fuel vehicles, FPC is required for vehicle lights, instrument panel and steering wheel, vehicle electrification and intelligence open up a broader market space for FPC, and FPC is required for power batteries, sensors and cameras.
Take the battery as an example. Previously, the power battery collection line of new energy vehicles adopted the traditional copper wire harness scheme. Compared with the traditional harness, FPC flexible circuit board has many advantages, such as high integration, automatic assembly, assembly accuracy, ultra-thin thickness, ultra flexibility, lightweight and so on. Especially in terms of automation and lightweight, it improves the production efficiency The unit production cost is saved and the price is cheap.
Minmetals securities analyst Wang shaonan said that with the gradual popularity of new energy vehicles, under the background of declining subsidies and falling battery prices, battery enterprises need to introduce and apply new materials in power batteries in order to reduce costs. In recent years, through continuous process improvement, FPC manufacturers have further reduced the price of FPC for power battery. With the joint promotion of power battery and FPC manufacturers, the introduction environment of FPC in the field of power battery in China has been greatly improved and is gradually widely adopted by power battery manufacturers. FPC is expected to be introduced in large quantities.
On the other hand, among FPC’s raw materials, the cost of copper clad laminate accounts for a high proportion, China Merchants Securities Co.Ltd(600999) analyst Yan Fan said that the pressure of copper clad laminate price rise in 2022 is expected to be eliminated.
From the perspective of investment, new energy vehicle power battery FPC products need a certain verification cycle, and manufacturers that have entered the supply chain of vehicle factories and battery factories have the first mover advantage. In addition, FPC manufacturers who first layout the downstream integrated product CCS can further improve the value of single vehicle, which deserves special attention.
Among the above companies, Guangzhou Goaland Energy Conservation Tech Co.Ltd(300499) has the first mover advantage and is currently in a leading position in business scale; Shenzhen Kinwong Electronic Co.Ltd(603228) has shifted the strategic focus of the soft board business to the power battery market. In 2021, the automobile board accounts for about 30% of the revenue. The orders of downstream mainstream customers have been initially large. From 2022, the corresponding production capacity will accelerate the expansion, and it is planned to set up a special factory in Zhuhai to vigorously develop the business. Yidong electronics is about to be listed on the Shenzhen Stock Exchange, and Xiaomi appears as the top ten shareholders.
In addition, material and equipment suppliers are also expected to benefit from it. Guangzhou Fangbang Electronics Co.Ltd(688020) is the first enterprise in China that integrates the R & D, production, sales and service of new materials such as electromagnetic shielding film, conductive adhesive, extremely thin flexible copper clad laminate and extremely thin peelable copper foil. Xiamen Hongxin Electronics Technology Group Inc(300657) , Shenzhen Kinwong Electronic Co.Ltd(603228) are its customers; Shenzhen Yanmade Technology Inc(688312) has provided customers with FPC testing equipment eventually applied to automotive electronics.
