Pengding Holdings (002938): Advanced Process Helps Pengfei Nine Days

Pengding Holdings (002938): Advanced Process Helps Pengfei Nine Days
Born from Taiwan-owned A-share printed circuit board leader.The company’s predecessor was Fu Kui Precision, a wholly-owned grandson of Zhending Holdings, which was established in Shenzhen in 1999. In 2016, Hong Qisheng (Qinhuangdao), Qingding Precision (Huai’an), Fubai Industrial (Shenzhen) were exchanged.Hongqunsheng (Yingkou), Honghengsheng (Huai’an), Yuding Precision (Huai’an) and other subsidiaries established in China by Zhending Holdings, and also established overseas subsidiaries Hong Kong Pengding and Taiwan Pengding to take over IRIS andThe entire PCB business of Zhending and Yiding International Taiwan Branch has 杭州桑拿网 since topped the global PCB company output value rankings until 2017, and topped the rankings in 2018. The downstream and downstream dividends dissipated again.Among the company’s revenue, communication boards (mainly corresponding to smartphones) account for a very high proportion (in 2015, the communication boards accounted for more than 60% of the company’s total revenue). Before 2016, it benefited from the main downstream application areasBooming, the company has achieved steady growth.After the downstream smartphone mobile dividend has dissipated, product technology upgrades have become the main factor that continues to increase the value of the single PCB.The momentum for further growth. In 2018, the company’s revenue and net profit reached 258, respectively.55 ppm and 27.7.1 billion yuan.At the same time, leading technology 北京桑拿洗浴保健 has become an important reliance for the company to expand other core customers. 5G gives birth to the possibility of flexible board transformation.In the past few years, the FPC has been updated mainly in terms of technological processes. With the trend of thinner and lighter smart terminals, FPC has developed towards higher-density wiring, finer line width and spacing, and more layers.The improvement is relatively relative, and it is still mainly polyimide (PI) and polyester film (PET). In the 5G cycle, in order to reduce the signal loss during high-frequency and high-speed communication transmission, low Dk and DfCircuit board substrate materials have become an important research direction for various manufacturers.At present, there are two alternatives to low-loss substrate materials for flexible boards (especially those used for antennas) —liquid crystal polymer (LCP) and heterogeneous PI (MPI). The use of LCP and MPI will further improve the softThe stand-alone value of the board in terminals such as smart phones is also the reason why Taiwan-based Japanese soft board manufacturers such as Peng Ding continue to maintain better profitability in a highly competitive market. The heroes may compete for SLP, and the company’s first-mover advantage is obvious.Improving the integration of the motherboard is one of the effective paths to realize the reconfiguration of multiple components within a limited space. Apple’s first release of a SLP motherboard in the iPhone X is the best evidence. Even Apple and SamsungLarge smartphone brand manufacturers use SLP motherboards in their flagship phones, but serial smartphones (especially 5G mobile phones) continue to increase their internal space integration requirements. Other domestic first-tier smartphone brand manufacturers (such as Huawei, OPPO, vivo, etc.)) It is also possible to follow up SLP applications in high-end flagship products; according to Yole’s prediction, 2017?In 2023, the global SLP market size will grow at a compound annual growth rate of 64% and reach 22 in 2023.$ 400 million. The yield rate of the company’s existing SLP production line has been stabilized. In the company’s 2018 revenue, SLP accounted for about 5%.At this stage, the company is actively building new production lines to expand SLP production capacity. While increasing the company’s future performance flexibility, it can further reduce its technological leadership in the field of SLP. Earnings forecast and investment rating: Covered for the first time with a buy rating.Thanks to the relying relationship of the parent company Hon Hai, the company is a major supplier of internationally important customers FPC and SLP. Under the current trend, the value and usage of FPC and SLP in mobile phones are still constantly increasing, and the important international customers’The demonstration effect will make the company do more with less in the development of domestic first-tier brand manufacturers.For example, the current highest price is due to cost constraints and the progress on FPC and SLP is slower than Apple’s internal brands. Driven by the need to increase the internal integration of mobile phones, it has also gradually increased the use of FPC and dating SLP.Further advanced, the company is expected to achieve net profit of 31 in 2019-2021.9.1 billion, 37.09 billion and 42.540,000 yuan, currently corresponding to PE 36.12, 31.08 and 27.10 times, taking into account the company’s technological leadership in the field of FPC and SLP is expected to help the company in the future to achieve the possibility of higher-than-expected growth in performance, the first coverage, give a buy rating. Risk reminders: (1) The value of the FPC single machine in the customer’s product is less than expected; (2) The progress of the domestic first-tier brand manufacturers to introduce SLP is less than expected; (3) The company’s IPO project construction is less than expected.