Production capacity rises in the East and falls in the west, and the proportion of Chinese players continues to increase: in 2008, China’s PCB output value accounted for 31% of the world; Since 2017, PCB output value in China (mainland and Taiwan) has accounted for more than 50% of the global output value. The global PCB output value is gradually moving to China, and the pace of localization is gradually accelerating. According to PRNewswire data, Chinese mainland PCB market share remained above 50% in 2020, and steadily increased to 53.80% in 2020.
PCB has a wide range of downstream applications. It is recommended to pay attention to the high boom sub track: as the main support of electronic components, PCB has a wide range of downstream applications, mainly including communication equipment, industrial control and medical treatment, aerospace, automotive electronics, computer and other sub fields. We suggest paying attention to the track and technical card position: first of all, in terms of track selection, with the continuous improvement of the penetration rate of new energy vehicles, the demand for automobile PCB boards has increased steadily, and the high prosperity can be expected in the future. Secondly, in terms of technology card position, we continue to be optimistic about HDI, SLP and IC carrier sectors. It is recommended to pay attention to Chinese players with production capacity, technology and product layout.
Cost pressure, demand improvement, and the business performance of PCB Factory gradually improved: in the first three quarters of 2021, the performance of PCB players significantly improved. Driven by the demand for IC carrier board and automobile board, the performance of Chongda, XINGSEN, Shennan and other players steadily increased. We believe that with the gradual easing of raw material cost pressure, the demand for automobiles, servers and IC carrier boards will drive the performance of PCB manufacturers to rise steadily.
Risk warning: the risk of upstream raw material price rise, capacity release and less than expected risk.
