Source: e company
This week, the concept of printed circuit board (PCB) continued to be active, and several stocks continued to rise, attracting market attention. Data shows that the PCB concept plate rose 6.6% this week, with individual stocks Weiergao, Yihao New Materials and Chenfeng Technology leading the way.
PCB is the base plate loaded with electronic product parts, which provides support and electrical connection for electronic components and is the basic necessity of almost all electronic equipment. Therefore, PCB is also known as the "mother of electronic products". At present, PCB products are widely used in many fields such as consumer electronics, computers, communication equipment, automobile, industrial medical treatment, aviation, etc. Especially under the wave of rapid iteration of AI large model, and automobile intelligence, servers and automobile PCBs will usher in the opportunity of both quantity and price rising.
Since this year, the PCB sector has performed well, with Shengyi Electronics, Shenghong Technology, Shanghai Electric Power Co., Ltd., Shennan Circuit, Pengding Co., Ltd. and other companies increasing by more than 50% this year. Among them, Shengyi Electronics has gained 251% since its low point in February this year.
Recently, the popularity of PCB concept has also been driven by Nvidia. Last week, a market view said that Nvidia GB200 servers were officially scaled up in the second half of the year, and AI server PCBs were mainly added to the GPU board group. At the same time, the AI server has high requirements for transmission rate, requiring 20~30 layers of HDI boards. In addition, ultra-low loss materials will be used in material selection, and its value will be further improved.
Affected by this, the concept of A-share rose significantly. On June 14, Weiergao gained a 20% limit increase, which has risen more than 35% since last week. In addition, Yingkerui and Chenfeng Technology gained a limit increase, and Yihao New Materials, Shengyi Electronics, Shenghong Technology and other stocks rose sharply. Shares of Shanghai Electric Power Co., Ltd. soared 7.67%, hitting a new record high. The share price has risen 71.42% since the beginning of the year. At present, the company's market value has exceeded 70 billion yuan.
From the perspective of the industry, the PCB industry chain is greatly affected by the cyclical fluctuations of the macro economy. After the performance of the previous two years was under pressure, the industry is showing a trend of recovery. It is reported that the scale of the global PCB market will shrink in 2023 due to the pressure of destocking and the interest rate hike to curb inflation. In 2023, the global PCB output will total $69.517 billion. However, as market inventory adjustment, weak demand for consumer electronics and other issues enter the final stage, and driven by artificial intelligence, the demand for multi link PCB within the server is strong, PCB is expected to enter a new growth cycle.
Soochow Securities pointed out in the research paper that the prosperity of the global PCB industry showed an upward trend from the perspective of the monthly changes in order expectations and shipments. Data shows that the order shipment ratio of PCB in North America has exceeded 1 for three consecutive months, and the order amount and shipment volume in April 2024 achieved positive growth at the same time on a year-on-year basis.
BOC International said that in 2024, with the recovery of the global semiconductor cycle and the introduction of terminal innovation represented by Apple XR, AI PC, etc., the dual logic of "cycle+growth" in the industry is expected to continue to resonate.
According to statistics, there are 42 listed enterprises in the A-share printed circuit board sector. In the first quarter of this year, Shanghai Electric Power Co., Ltd. achieved a revenue of 2.58 billion yuan, up 38.3% year on year; The net profit was 515 million yuan, up 157.0% year on year. Shennan Circuit achieved a revenue of 3.96 billion yuan, up 42.2% year on year; The net profit was 380 million yuan, up 84% year on year. Jingwang Electronics achieved a revenue of 2.743 billion yuan, up 17.16% year on year; The net profit was 318 million yuan, up 50.3% year on year.
With the high attention of the market, many companies have responded to the operation progress in recent years. Shengyi Electronics said that at present, the company has successfully developed a number of server customers, and the AI supporting motherboard and accelerator card projects have entered the mass production stage. In the future, as the demand for AI products continues to rise, the company's AI server project is expected to continue to grow in 2024. Shenghong Technology said that the company has launched a number of AI server related products such as high-order HDI, high-frequency high-speed PCB, and some products have been supplied in batches.
It was mentioned in the recent survey of Shanghai Electric Power Co., Ltd. that the company's Huli Microelectronics is targeted to accelerate investment and effectively expand the high-class HDI capacity of automobiles; Huangshi No.2 Plant, on the basis of further optimizing the process capability, accelerated the certification and introduction of new products and customers.
Galaxy Securities believes that the demand for AI in the second quarter is still very strong. Some A-share PCB companies' products have entered the global supply chain system. They are expected to benefit from AI development in the future, and their performance will continue to grow at a high rate. At the same time, they are optimistic about the investment opportunities brought by the localization of AI related links.
Special statement: The above content (including pictures or videos, if any) is uploaded and released by users of "Netease" on our media platform, and this platform only provides information storage services.
Notice: The content above (including the pictures and videos if any) is uploaded and posted by a user of NetEase Hao, which is a social media platform and only provides information storage services.
