Investment advice
There is a strong demand in the new energy market, and there is a good opportunity for domestic substitution of thin film capacitors. New energy vehicles and photovoltaic wind power have become the main incremental markets of thin-film capacitors. In the next three years, the market scale of thin-film capacitors in these two fields will increase by about 38% and 16% respectively. In addition, there are also industrial control, charging pile (the value of super charging pile thin-film capacitor has increased significantly), energy storage and other fields. China has obvious advantages in the field of new energy (electric vehicles and Fengguang storage). Local thin-film capacitor manufacturers have initially achieved a double breakthrough in technology + production capacity, continuously increased their share in the field of new energy, strong demand for new energy + domestic substitution, and Chinese thin-film capacitor manufacturers have ushered in a new round of development opportunities.
Industry perspective
It is predicted that the CAGR of the global thin film capacitor market from 2021 to 2025 will be 13%. Thin film capacitors have the advantages of high withstand voltage, high current carrying, high temperature resistance, non polarity, self-healing, long life and strong surge resistance. They are widely used in industrial control, new energy, electric power, rail transit and other fields. In 2021, the scale of global thin film capacitor market is about 3.2 billion US dollars, which is expected to increase to 5.2 billion US dollars by 2025, and the CAGR will reach 13% from 2021 to 2025. On the demand side, the new and old kinetic energy of the thin-film capacitor market will be transformed, the lighting market will decline, industrial control and household appliances will rise steadily, the new energy field will become the main incremental market, and the global thin-film capacitors for new energy vehicles, photovoltaic, wind power, energy storage and charging piles will maintain high growth in the next three years.
The barrier of thin-film capacitor industry is high and the competition pattern is relatively stable: thin-film capacitor is difficult in technology, production process control, tooling and fixture equipment. It requires long-term technical accumulation and precipitation to have a good yield and gross profit margin. In addition, there are strong barriers in customer certification, such as electric vehicle, photovoltaic wind power and industrial control. On the one hand, it has high requirements for product reliability and service life, On the other hand, the certification cycle is also long. In 2018, the global film capacitor Market Cr5 reached 40%, of which Panasonic, Jimei, Xiamen Faratronic Co.Ltd(600563) , nikikon and tdk-epcos accounted for 9%, 8%, 8% and 7% respectively.
Local manufacturers began to achieve double breakthroughs in high-end market technology + production capacity. Panasonic, Jimei (acquired by Guoju) and nikikon have a large share in the high-end market of thin-film capacitors. In recent years, Chinese manufacturers’ automotive and industrial control product lines have basically caught up with the technical level of Japanese and American manufacturers. Xiamen Faratronic Co.Ltd(600563) as the leader of Chinese thin film capacitors, it ranks among the top three in the world, and its market share exceeds that of overseas manufacturers in some fields such as automotive, industrial control and photovoltaic. Overseas thin-film capacitor manufacturers are cautious in expanding their production. Chinese manufacturers have expanded their production on a large scale. Xiamen Faratronic Co.Ltd(600563) vehicle thin-film capacitors will expand their production by 100% in 2021 and plan to expand their production by 100% in 2022. Photovoltaic thin-film capacitors will also maintain an annual expansion rate of more than 50%. The revenue from new energy accounted for 64% in the first quarter of Xiamen Faratronic Co.Ltd(600563) 2022. Jianghai thin film capacitors have not only entered a large number of application stages in consumer electronics and industrial equipment, but also started batch delivery in the field of new energy electric vehicles and military industry, entering a rapid growth period. The production of automotive thin film capacitors will also be expanded by 70-80% in 2022. It is predicted that local manufacturers are expected to further expand their share in the high-end market in the future.
Recommended combination: Xiamen Faratronic Co.Ltd(600563) , Nantong Jianghai Capacitor Co.Ltd(002484)
Risk tips
Price fluctuation risk of main raw materials of thin film capacitors; The development of downstream application industries is less than expected; Affected by the epidemic and lack of core, the output of electric vehicles did not meet expectations.
