Walter (002886): High-frequency substrate 杭州桑拿网 PCB board substrate leader welcomes 5G terminal possibility
The market for ALCP substrate projects is broad, and breakthroughs have been made in localization.
LCP is a new type of high-performance special engineering plastic. Its main application areas include electronics, automotive, medical and so on.
According to Zion Market Research forecast, the global LCP market size will reach 14 in 2023.
500 million US dollars, compound growth is expected to be 6 from 2016 to 2023.
The company’s LCP materials and products participate in global technological competitiveness. Since acquiring all of Samsung’s LCP business in 2014, it has continued to conduct market research and development and develop production lines.
In 2018, the company’s products were successfully approved by the Foxconn system. Through the accelerated commercialization of 5G equipment, the company’s LCP products are expected to usher in new breakthroughs and achieve import substitution.
Acquired some equity in Deqing Kosai, further consolidating the replacement of leading companies in natural special polymer materials.
The company acquired a 51% stake in Zhejiang Deqing Kosai Plastic Products Co., Ltd. in early March 2019. Deqing Kosai is a leading fluoropolymer material PTFE company, and its high-frequency equipment films have been mass-produced, which will enhance the company’sMarket share of materials for high-frequency and 5G equipment products.
In addition, Deqing Kesai’s chlorine-containing polymer resin materials will provide raw material support for the company’s high-temperature equipment polymer materials, which will help the company integrate the industrial chain resources, enhance the innovation capability of the industrial chain, and form product companions with other special polymer materials laid out by the companyAnd industry synergy.
Falling prices of raw materials are expected to improve performance, and traditional businesses are growing steadily.
The average cost of raw materials of the company’s main products accounted for more than 90% of the total production costs. Due to the poor bargaining power of the modified 杭州夜生活网 plastics industry, the gross profit margin has dropped sharply since the price of raw materials rose sharply in the second half of 2016.
With the drop in raw material prices in Q4 2018 and the lock-in of product prices, the company’s gross profit margin will increase, and its profit is expected to usher in improvement.
Profit forecast: The company is a leading domestic LCP and PTFE material company. By increasing the demand for substrates and converting PCBs, 5G drives mobile terminal antennas.
55 billion, 0.
86 billion, 1.
3.5 billion, the current expected corresponding dynamic PE is 47 times, 30 times, 19 times, the first coverage, given the “overweight” rating.
Risk warning: downstream demand is less than expected; LCP production expansion is less than expected.