China's smart phone market recovers, smart speaker demand climbs, PCB plant benefits

The prices of polyimide film on flexible board materials increased, pushing up the unit price of flexible copper foil substrates (FCCL). The soft board factory has been more aggressive in buying goods this year, plus a new generation for 5G communication applications and fine lines. Product capacity expansion plans, including Jia Lianyi and Taichung County, all have market fundraising cases. It is expected that this year, under the blessings of Apple, etc., the soft board factories will include Ding Ding-KY. The performance of Yadian and Xinyangke is expected to climb again.

Taichung County has adopted a plan of capital expenditure of RMB 9.4 billion in response to 5G and soft wiring, and is expected to spend half a year in 2018 and 2019, respectively. It will build a new plant in Kaohsiung City and Kunshan, Jiangsu Province in the Mainland.

Taiwan’s new products, such as the Apple HomePod smart speakers, have increased by 40% to 50% year-on-year. This will be the most prosperous quarter in the calendar year. As of this year and next year, capital expenditure will be used to expand factories. , Investing in new materials, upgrading technology, investment benefits are expected to be presented in 2019, and capacity will be doubled by then.

Last year, Dingding's total revenue was 108.8 billion yuan, 32% year-on-year, exceeded 100 billion yuan, and became the first PCB company in China to achieve 100 billion yuan in revenue, further solidifying the global PCB output value.

Looking forward to this year, the growth of China Mobile's mobile phone customer operation is expected to grow steadily. The type and proportion of iPhone soft board products will continue to increase, and the design and specifications of the iPhone's soft board will continue to be upgraded. The robust production expansion will be 5~10. % In response, the estimated annual growth and revenue of FPC products will be 16.4% and 77% respectively, which will be the main growth momentum for this year's revenue.