Benefiting from the tide of automotive electronics, the price of raw materials has fallen at a high level. Is this sector ushered in a high time?——En Qianzhan Report

Source: WeChat public account "Daida" (WeChat public account ID: daoda1997)

Lao Tie, good weekend! I am Qian Yanjun, and today I released the latest research results on the public account "Daida" -Qian Zhan Report.

In "Five -year compound growth rate is as high as 160%! This industry chain has doubled and above -the 3rd issue of Qian Zhan Report 2022 ", Qian Yanjun shared the investment logic of the integrated die -casting industry chain, and focused company. The performance of related companies in the past two months can be described as amazing! Taking Guangdong Hongtu as an example, if it starts at the end of April, the maximum increase will increase by more than three times!

Many old iron commented, do you have any investment opportunities in the car sector? After a lot of search and reading research reports, Qian Yanjun really found a possible opportunity -the car PCB industry. Next, Qian Yanjun will share the investment logic of the car PCB industry.

In this issue of Qianzhan Report, the platinum version was launched to introduce five key listed companies in the car PCB industry. Pay attention to the WeChat public account "Daeda" and read it.

Disclaimer: This article and Qianzhan Research Report Platinum Edition is the main point of view of the most hot research newspaper from the industry's forward -looking version. The information provided by the article is for reference only and does not involve operating suggestions. Based on this, the risk is responsible!

Car -use PCB industry chain combing

PCB (Printed Circuit Board, printing circuit board) is an important electronic component, a supporting body of electronic components, and a carrier of electronic component electrical connection. The upstream of PCB includes raw materials such as copper -covering plates, resin, and dry membranes. The midstream is made of PCB, and the downstream includes many application scenarios such as computers, automotive electronics, consumer electronics, aerospace, etc.

According to the data from the Foresight Industry Research Institute, the downstream application scenarios in PCB in 2020 are broad, including almost all electrical circuit products. Among them, communication electronics is the largest application of PCB downstream, accounting for 35%of its application share, while automotive electronics applications currently account for 16%.

The industry threshold for the PCB of the car is relatively high. Different from the requirements for the manufacturing process of consumer electronics, due to the higher requirements for safety factor and reliability, cars need to ensure that the road is unprecedented. The requirements of the other have different needs according to different installation positions, but are generally greater than the consumption level.

From 2010 to 2020, the value of bicycle PCB increased from $ 39 to about $ 94, driving the global car PCB output value from $ 2.8 billion to $ 7.3 billion, with a compound growth rate of 10.1%.

Increased car electronic penetration rate promotes PCB demand significantly increased

The proportion of car electronics in the cost of vehicle is different. Among them, the proportion of compact passenger cars reached 15%, the proportion of mid -to -high -end passenger cars accounted for 28%, and hybrid passenger vehicles accounted for 47 %, Pure electric passenger cars account for 65%.

Tianfeng Securities pointed out that the electronic penetration rate of automobiles has continued to increase and the trend of electronicization is obvious. It is expected to reach about 50%of the penetration rate in 2030. The continuous improvement of automotive electronic applications will increase the demand for its basic components -PCB.

For example, in traditional cars, the PCB dosage of each ordinary car is 0.6-1 square meters, and the dosage of high-end models is 2-3 square meters. Based on the different design schemes, the vehicles use the area of ​​about 5-8 square meters, which is 5-8 times that of traditional cars. Among them, the value of the bicycle of the electronic control system alone exceeds 2,000 yuan.

According to Verify Market Research, the automotive PCB market will maintain growth from 2021-2028, the compound growth rate of interval is 5.30%, and the market size in 2028 will reach US $ 12.48 billion.

(Picture source: Screenshot from Tianfeng Securities Research Report)

In terms of area, the PCB market size in the Asia -Pacific region ranks first in the world, accounting for 38%of the world's market share. At the same time, according to Mordor Intelligence's forecast, the Asia -Pacific market will become the highest growth market in the future. Tianfeng Securities believes that the Chinese market will also become a fast -growing and opportunity market.

The industry concentration is low, and domestic manufacturers are fighting hard to catch up

In PCB upstream materials, the price of copper and epoxy resin is an important factor affecting the cost of raw material. Beginning in 2020, the price of copper prices and epoxy resin rose rapidly, resulting in the rapid increase in PCB costs. At present, the trend of copper prices in the past three months has stabilized and showed a decline in the future. The future may continue; and epoxy resin has significantly presented the price decline in the last three months of 2021.

Tianfeng Securities believes that the price of raw materials is expected to show a high level of stability/decline, which will reduce the cost of PCB, alleviate the cost pressure of PCB manufacturers, increase the profitability of PCB manufacturers, and increase their willingness to increase production.

At present, the industry concentration of car PCB is low, and overseas manufacturers occupy the top three shares. In 2020, the top three manufacturers of the car PCB market share are overseas manufacturers, and the number one share of CMK accounts for 8.2%of the market share. Tianfeng Securities pointed out that domestic manufacturers' share is still small, but they are struggling to catch up.

According to statistics from Sisi Steam Research, many car PCB related enterprises currently conduct fund -raising and expansion plans to meet the continuous improvement of downstream demand. In addition, domestic automobile PCB manufacturers are actively developing high -end PCB products. After the successful development, the added value of PCB manufacturers will increase, and its profitability is expected to rise. So, what kind of company is expected to stand out in this industry?

Tianfeng Securities believes that the automotive electronics industry is very important for the development of downstream terminal customer resources. The lower reaches of the automotive electronic industry chain is Tier1 (first -level supplier) manufacturer/car company. Expanding end customers will provide strong sales support for products. At present, globally, the downstream customers of the PCB of the car are strong, and the recognition of leading end customers may significantly improve manufacturers' performance.

In this issue of Qianzhan Report, the platinum version was launched to introduce five key listed companies in the car PCB industry. Pay attention to the WeChat public account "Daeda" and read it.

Disclaimer: This article and Qianzhan Research Report Platinum Edition is the main point of view of the most hot research newspaper from the industry's forward -looking version. The information provided by the article is for reference only and does not involve operating suggestions. Based on this, the risk is responsible!

Risk tips: 1. The sales of cars/new energy vehicles are less than expected; 2. The price of raw materials remains high or recovered; 3. The penetration rate of the "new fourizations" of the automobile and the promotion rhythm is not as good as expected; 4. Industry competition intensifies.

The reference report of Qian Zhanyan in this issue is as follows:

Tianfeng Securities-Communication Industry: Electrification+Intelligent Networking Correspondence has spawned new opportunities for car PCB investment!

Debon Securities-Auto PCB industry depth: intellectual electric driving accelerate growth, ecological change bred giants

(The content of this article is only used as a reference and the basis for investment. Based on this, the risk is on its own)

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