By Real | 16 July 2021 | 0 Comments

The total IPO funds raised by Chinese mainland PCB manufacturers in 2020 reached 12.4 billion yuan

In recent years, under the influence of many factors such as international trade frictions, weak terminal market demand, and high pressure on environmental protection, the development of the PCB industry has also experienced many fluctuations. In addition to the uncontrollable global epidemic situation and the price increase of PCB raw materials,there are also uncertainties in the development of the PCB industry.

In contrast, with the development of 5G communication technology, in the PCB industry, which is facing internal and external troubles, many manufacturers are still standing after the industry reshuffle, and they are also ushering in opportunities for development. In particular, 5G technology has given birth to base station construction and upgrading and consumer electronics continue to evolve towards high integration. The demand for mid-to-high-end PCB products continues to increase, and mainland PCB manufacturers are also accelerating the deployment of HDI products. At the same time, PCB products such as automotive electronics and servers, driven by industrial policies and market demand, have also helped relevant manufacturers to accelerate their growth.
Under this circumstance, based on the policy assistance of the capital market, PCB companies will also be rushing for IPOs in 2020. Shengyi Electronics, Aohong Electronics, Xiehe Electronics, Sihui Fushi, Kingshine Electronics, Nanya New Materials, etc. have successively started to go on the market. Among them, Sihui Fushi, Nanya New Materials, Kingshine Technology, Aohong Electronics, Xiehe Electronics, Allfavor Intelligent and Xunjiexing successfully went public.

Throughout the entire PCB industry, there are about 1,500 PCB manufacturers, but most of them are small and medium-sized manufacturers. Especially in terms of technical strength, product stability, product delivery and price, etc., coupled with the continuous reshuffle of the industry in recent years, there are currently not many competitive PCB companies.

Data shows that as of the end of 2019, there were 24 domestic listed PCB companies, which shows that the proportion of listed companies is relatively low.

However, this situation ushered in a change last year. With the opening of the registration system for the Science and Technology Innovation Board and the ChiNext, coupled with the driving forces of 5G technology, big data, and artificial intelligence, it has also boosted the development of companies related to the industry chain. With the continuous expansion of segmented application fields, the huge market space spawned brings dividends to industry chain companies. In response to this demand, many companies that are relatively prominent in segmented applications seek to go public to raise funds to focus on the development of their main businesses.

According to incomplete statistics from Jiwei, there are 16 PCB companies that are planning to go public or have gone public in 2020, with a total fund-raising of 12.384 billion yuan.

From the perspective of the listing sector, since the establishment of the Sci-tech Innovation Board and the ChiNext registration system, companies have also had more channels and opportunities for IPO. Among the companies sorted out above, the companies listed on the Science and Technology Innovation Board and the ChiNext are half and half. Judging from the progress of the IPO, there have been 7 companies that have passed on the Sci-tech Innovation Board and ChiNext respectively, and the pass rate is relatively high.

From the perspective of fund-raising purposes, the application market demand for consumer electronics, automotive electronics, and servers is the main focus. Fund-raising projects are mostly related to the main business. Representatives of Camelot Electronic, Delton Technology, Wuzhu Technology etc., continue to expand Competitive strength in segmented application fields.


Multi-fields go hand in hand, the rise of automotive PCBs

According to industry analysis, due to unresolved Sino-US trade issues, there are also many uncertainties in the global communications market. PCB manufacturers believe that the overall demand in the communications market is still weak at this stage, but 5G, automotive electronics, cloud computing and artificial intelligence and other technology applications The growth trend will continue in the future.

Among the IPO companies sorted out above, the Wuzhu Technology, who is PCB supplier of Huawei and Samsung, have products in the fields of multilayer boards, HDI boards, and FPC. In order to achieve the optimization and upgrade of product structure, strengthen cost control and increase capacity utilization, Wuzhu Technology raised 1 billion yuan to build high-precision PCB products, and strengthened the product layout in the high-end field.

At the same time, since the second half of 2020, the automotive PCB market demand has begun to pick up. Driven by national policy support and the intelligent trend of the automotive industry, automotive electronics demand for high-end PCB applications continues to grow.

Among them, the layout of PCB head manufacturers has more advantages, such as WUS, Shengyi Technology, Shennan Circuit and so on. It is true that the current proportion of the business of some top manufacturers in the automotive electronics field is not high, but with their advantages in technology and capital, more and more manufacturers are focusing on this field to enhance the power supply of new energy vehicles. PCB research and development of controller (BCM), 48V start controller (BSG), automatic driving (ADAS) main controller, etc., and gradually introduce infrastructure construction to increase customer and market development.

However, what cannot be ignored is that due to the current overcapacity of low-end automotive PCBs, price competition will also become more intense, and investment in high-end products has also attracted many manufacturers to increase their capital.

Therefore, among the IPO companies sorted out above, Camelot Electronic, the largest PCB supplier of CATL, belongs to the automotive electronics sector. Compared with the layout of the above-mentioned top manufacturers in automotive electronics, the main business of Camelot Electronic focuses on Products in the field of new energy vehicles cover battery management systems (BMS), motor controllers, DC/DC converters, on-board chargers, ADAS, charging piles and other core components and supporting facilities, and have accumulated many customers in the automotive industry.

In the IPO fundraising, Camelot Electronic intends to increase the project of supporting high-end printed circuit boards for new energy vehicles, and invest in the construction of "4 million m² annual output of high-density interconnection and rigid-flex combination-high-end printed circuit boards for new energy vehicles The second phase of the construction project will further expand its market share in the PCB field of new energy vehicles.

In addition, the server market was also a hot PCB application market last year. As the number one server PCB supplier among Chinese domestic-funded PCB companies, Delton Technology’s server PCB products accounted for about 60%, and its customer system includes Inspur, DELL, Foxconn, Quanta Computer, etc., and also cooperate with well-known domestic customers such as Huawei, ZTE and Lenovo.

This time, Delton Technology plans to raise 1.46 billion yuan, of which 1.1 billion yuan will be used to invest in the construction of multi-high-level precision circuit board projects, and continue to expand cloud computing-related high-speed multi-layer precision PCB products for servers, as well as communication equipment and consumer products. Expand on related PCB products such as electronics and automotive electronics.



Overall, as the foundation of the electronics industry, driven by new technologies and new demands, the PCB industry's recovery trend is still continuing. Especially after the end of the epidemic, "a hundred wastes waiting to be developed". In the case of rapid growth in terminal demand, "active expansion" is still the main theme of PCB manufacturers. In this context, some relatively high-quality PCB manufacturers are also accelerating the pace of IPOs while expanding production, and are expected to achieve new performance growth with the help of the capital market.(News Source: jiwei)
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