After Eaton Electronics Entered The Apple Supply Chain, The Automotive PCB Business Started On Huawei.

Among Apple's domestic suppliers, PCB maker Eaton Electronics is quite low-key. Eaton’s electronic PCB business has grown into consumer electronics and automotive electronics. The company's performance in recent years shows a steady growth trend.

 

However, from the first half of the A-share 31 PCB concept stocks, Eaton’s net profit was not good; this is because Eton Electronics’ net profit is not high. On the contrary, the dividends in the first half of the year exceeded 700 million yuan, and the dividends for the five-year period of listing exceeded 2.6 billion yuan. Up to 277.78% of Yitong Electronics has become the focus of attention of the industry and investors. However, why the performance of ordinary Eton Electronics is so "generous", the reason behind it is worth exploring.

Consumer electronics PCB indirect supply of apples

From 2014 to the first half of 2019, Eaton’s distribution rate jumped from 28% to 278%. Among the listed companies in the mobile phone industry chain, there are not many manufacturers of dividends.

From the perspective of Eaton’s share structure, a high degree of “correctness” means high dividends, and the high-light effect of dividends returns to the product itself. Eton Electronics has entered a supply chain system, such as Apple Huawei, which is also a major attraction. .

It is reported that the main product circuit board of Yidun Electronics can be divided into two-layer board, four-layer board, six-layer board, eight-layer board and above according to the number of layers. This product is widely used in automotive electronics, communications equipment, consumer electronics, computers, industrial control. And other downstream industry products.

In 2012, Eaton Electronics ranked first in China's multi-layer board production and became a major supplier to Huawei, Flextronics and Jabil.

Then, in 2014, Eton Electronics successfully listed Apple's Top200 supplier list and became one of Apple's main PCB suppliers. The main products are support boards for iPhones and iPads, and there are a handful of apps on the Mac.

In the same year, Eaton Electronics was listed on the Shanghai Stock Exchange and intends to publicly issue no more than 120 million shares of common stock to the public. The proceeds after deducting the issuance expenses will be used for “multi-layer printed circuit board project with an annual output of 1.1 million square meters” and “HDI printed circuit board project with an annual output of 450,000 square meters”.

It is worth noting that in 2018, Eaton Electronics changed the HDI project to “multi-layer printed circuit board project with an annual output of 700,000 square meters” and “multi-layer printed circuit board project with an annual output of 1.1 layers”. Put into production. At this time, Eaton Electronics has rapidly expanded its four- and eight-layer multilayer printed circuit boards to accelerate the development of automotive circuit boards and other products.

Automotive PCB business

Industry insiders know that in the first half of 2019, Eaton Electronics was not spared due to the decline in the influence of Sino-US trade wars and downstream terminal electronic products, and the slowdown in the global PCB industry.

According to the financial report of Yideng in the first half of the year, the operating income was 1.45 billion yuan, down 4.05% year-on-year; the net profit attributable to shareholders of listed companies was 259 million yuan, a year-on-year increase of 2.52%.

It is worth noting that thanks to the high value-added product structure, Eaton’s net profit margin in the first half of the year reached 17.2%.

Among them, the high value-added products of automotive electronics and communication customers have gradually become the "highest pillar" of Yideng Electronics in the fierce market competition, and also an important business of Eton Electronics.

It is worth mentioning that Huawei is also targeting the automotive industry, driven by new technologies such as artificial intelligence and 5G. In April this year, Huawei and Dongfeng Motor cooperated to build a smart car at the Shanghai International Auto Show. Huawei's high-tech configuration of its in-vehicle communications, 5G and cloud data centers will also enhance the strength of the smart car supply chain.

At the same time, since 2014, Eton Electronics, which has deployed automotive electronics, has maintained an average annual revenue of 20% for its automotive PCB business. In 2018, it accounted for 39% of total income and became Valeo and Delphi. , Bosch, mainland and other first-class international Tier1 manufacturers.

Yideng Electronics, which is deeply engaged in the automotive electronics business, has successfully entered China by relying on the supply strength of world-class automobile manufacturers.

Although the current automotive electronics market is not optimistic driven by new technologies such as artificial intelligence and driverlessness, the demand for automotive PCBs (such as automotive powertrains and DAS systems) has increased significantly due to the demand for smart electronics. . Compared with traditional bicycle applications, the PCB area is 0.5-2 square meters, the luxury car is 2-3 square meters, and the PCB area of new energy vehicle applications is 2-4 square meters. The application field of automotive PCB has been greatly improved. improve. .

According to the report of Guojin Securities, with the improvement of the intelligentization of automobile electrification, the value of automobile bicycle PCB is expected to increase from 60 US dollars for fuel vehicles to 800 US dollars for high-end electric vehicles. Automotive PCBs will also be the fastest growing PCB industry. Fine molecular industry. The data shows that the estimated size in 2018 is $5.5 billion, a year-on-year increase of 3.8%. By 2020, the compound annual growth rate is expected to reach 3%, reaching 59 trillion US dollars.

In this context, as a long-established field of automotive electronics PCB, Eaton Electronics also coincides with this red tide. However, it should not be overlooked that one party is a high dividend, while the major shareholder “Yi Dun Investment” continues to reduce its shareholding. How Yideng Electronics stabilizes its position in the PCB field and continues to expand its advantages in the automotive PCB field is worthy of attention.