5G Most Benefit Industry PCB, Excellent Listed Companies To Share 60 Billion Cakes
5G startup has the exact eyebrows: On the evening of the 22nd, Xiaomi President Lin Bin sent the first Weibo under the 5G network. Huawei recently announced the future 5G folding mobile phone and sunk the company's 22 global 5G orders. The technology giants announced the 5G patent charging standard, and the official has clearly proposed to ensure the launch of 5G commercial, boots landing, to dispel market doubts.
Huachuang Securities uses the "long night, 5G is still the main line of layout" to explain the current 5G investment status and opportunities. The electronic team believes that through the in-depth research of the industry chain, with the 5G base station and other equipment replacement upgrades, upstream components The medium PCB is the most beneficial, and the application increment is significant. Shengyi Technology has been recommended by many organizations for its deep-frequency circuit with high-frequency PCB material production capacity and leading advantages. Zhengye Technology (300410) has also received attention as a supplier of both.
5G brings 60 billion PCB incremental opportunities
It is estimated that the incremental opportunity brought by 5G for PCB board exceeds 60 billion. Caitong Securities Research Report pointed out that the evolution of communication technology brought about by 5G will ultimately be reflected in the replacement and reconstruction of communication facilities, which will inevitably bring growth opportunities to related electronic components industry.
PCB board as the "mother of electronic products", the deep changes in the downstream will benefit the PCB industry, 5G construction will undoubtedly become an important driving force for the growth of the PCB industry in the next 2-3 years.
In terms of the total amount, the first 5G-induced replacement tide will drive the demand for PCB board shipments. The Ministry of Industry and Information Technology expects that 5G mobile phones will be launched in the second half of 2019. Considering that 5G mobile phones still need to be compatible with 4G in the early stage, the difficulty is greater than that of 4G mobile phones. Therefore, it is expected that domestic mobile phone shipments are expected to reach 574 million units in 2022, and 5G mobile phone shipments will reach 144 million units.
In addition, since 5G uses high frequency bands for signal transmission, the number of base stations will increase significantly. There are two ways to increase the base station: macro base station and small base station. According to the "White Paper on China's 5G Industry and Application Development in 2018" issued by CCID Consulting, it is estimated that the number of 5G macro stations will reach 360-500 million, and the number of small base stations will reach 720-10 million. The total number of base stations will be 4G. The base station's 3.3-4.6 times has laid a lot of room for growth.
From the perspective of unit usage, due to the explosion of information volume and high transmission rate in the 5G era, the large-scale application of Massive MIMO leads to an increase in antennas, which will generate greater demand for PCB boards, and the PCB area will increase and open wider. space.
Also, since the high frequency band of 5G forces the PCB board to be high frequency, the current mainstream scheme of the base station antenna is a PCB board using hydrocarbon materials, and the price is about 3000-6000 yuan/square meter, and the ordinary PCB price is about 1900 yuan/square. Meters, the unit value increased by 1.5-3 times, the value of the board increased significantly.
In addition, from the commercial start in 2020, China's 5G connection will reach 428 million by 2025, and the five-year compound growth rate will reach 155.61%. The data demand blows down the communication equipment to increase the data processing capacity, and the corresponding PCB sheet is expected to be multi-layered and the price will increase accordingly.
Caitong Securities said that the changes in base station construction brought about by technological innovation in the 5G era will create a new incremental market for electronic products, and PCB as a component carrier will benefit deeply. According to conservative estimates, the incremental space created by 5G for PCBs will reach 61.8 billion in five years. China's PCB industry is expected to usher in massive growth opportunities.
Zhengye Technology's two-line layout PCB follows the industry's growing
High-frequency PCB is a sector with rigid demand opportunities in the 5G era. Domestic developers of high-frequency materials are embarrassed, and Shengyi Technology gradually has production capacity due to the acquisition of ZTE Chemicals' complete formulation of PTFE products; China's downstream manufacturers have strong cost management capabilities. With high-end PCB manufacturing capabilities, backed by Huawei, the leading global communications equipment manufacturer, the opportunity is relatively certain, it is recommended to focus on the downstream communications PCB leader Shennan circuit.
Zhao Minghui, chief engineer of Zhengye Technology, said that the company is a two-line layout 5G application: after the layout of PCB materials, it began to do testing equipment and achieved a large market share, and then focused on PCB production equipment to provide the industry with overall technical solutions. Due to the rising cost of materials due to high frequency, manufacturers pay more attention to improving the fineness and precision of material processing, which also makes the company's future product sales space wider. Zhengye Technology (300410), a supplier of two leading PCB companies, which is strongly promoted by the organization, is naturally benefiting. The company's R&D, production and sales of PCB precision processing and testing equipment and PCB precision processing auxiliary materials are widely used in the middle and upper reaches of the PCB industry. They have Shengyi Technology, Shennan Circuit, Ultrasonic Technology, Mingyang Circuit, Bomin Electronics, Jialianyi, Xingsen Express, Schindler Technology, Wuzhu Technology, Chongda Circuit, Jingwang Electronics, Qingding Precision and other well-known customers.
Judging from the semi-annual report issued by the company, the technical upgrading of the company's laser cutting machines and other intelligent equipment has enhanced the company's recognition and market competitiveness in the PCB industry, which has brought about an increase in the company's performance. 2.4 billion yuan, an increase of 11.56%. Huachuang Securities said that the PCB industry continues to pick up, the company keeps up with the market demand to expand production capacity, and actively develop new products, which will continue to grow with the industry.