Consumer Electronics &PCB: Consumer Electronics Structural Innovation Continues To Benefit From PCB 5G Trend Remains

Huawei has become a bright spot in the global mobile phone market, with 5G readily available, structural innovation continuing and the rf industry benefiting. According to IDC's latest report statistics,19Q1 global smart phone shipments were 310 million units, down 6.6% year on year, down 17.2% month on month. Huawei's smart phone shipments in the first quarter were 59.1 million units, up 50% year on year. It is after the second quarter of last year, it surpassed apple again, and its share in the global smart phone market reached 19%, a record high. In April, 2014, domestic smart phone shipments reached 34.791 million, up by 6.5% year on year, recovering after five consecutive months of decline. Despite the global smartphone shipments still grow at an annual rate of decline, but China's smartphone components manufacturers to obtain a higher market share continuously in the existing product line, continue to implement the product upgrading and innovation, also makes the components value increases, and each big manufacturers also expanding downstream applications, to enter the automotive electronic, Internet and other fields, looking for new growth momentum. As such, we remain bullish on the opportunities for leading consumer electronics companies in the second half of 2019.  

Large-size LCD panel price recovery,OLED continued penetration, panel industry inflection point approaching. In terms of LCD, from the perspective of cost, there is not much room for the price to continue to go down, which has shown the momentum of bottoming out. At the same time, some manufacturers' capacity withdrawal plans, the traditional peak season in the second half of the year, and huawei and other domestic terminal brands entering the large-screen market have shown a positive structural improvement trend for the upstream supply chain. In 2019, OLED will permeate from flagship models to mid-end models. At the same time, multiple parties will work together to promote foldable products. Panel factories are looking for a rapidly growing market.  

Benefiting from industry transfer, 5G, as well as the construction and penetration of automotive electronics, the printed circuit board industry will be driven to the next level. In terms of PCB, it benefits from 5G construction and increases both in price and quantity. Meanwhile, with the general trend of industry transfer to mainland China and the positive attitude of PCB production expansion, the projects under construction also reach a new high. Therefore, we are firmly optimistic about the future development of PCB industry in terms of capacity expansion and 5G benefits. For FPC, optimistic about the use of consumer electronic terminals and automotive electronics FPC volume; In terms of IC boards, China has made a breakthrough and achieved true domestic replacement. At the same time, we have benefited from the global fourth cycle of silicon content increase and the large number of IC board supporting demands after the construction and expansion of FAB plants in mainland China. We also focus on the domestic board market and industry.