PCB News - PCB component manufacturing urgently needs a breakthrough

PCB componentmanufacturing urgently needs a breakthrough

The emergence of new computing devices such as tablet computers is a challenge for traditional PC manufacturers, but it is an opportunity for component manufacturers. For example, the emergence of the touch screen concept plate is due to the rapid development of tablets and smartphones.
As a major manufacturer of information and communication technology-related PCB products, Chinese local component companies generally start late, but they face better opportunities. For equipment manufacturers, on the one hand, additional costs such as tariffs and transportation costs for local procurement of components are relatively low. On the other hand, local component companies respond quickly and actively to small-scale customization and other procurement methods.
Among the components, there are two most important categories: new flat panel display devices and high-performance integrated circuits. These two industries have another feature in common, that is, they have higher requirements for capital. Therefore, going public is also a very important node in the development of such enterprises.
LCD panels look forward to industry recovery

Since 2008, continuous price declines have overwhelmed panel companies, and even the $1 increase in the price of large-size LCD panels in April this year can be the highlight.
The news that LCD panel prices have rebounded has the greatest impact on the domestic LCD panel leader BOE. As the domestic LCD panel company with the most production lines, BOE struggled to achieve profitability through a series of capital operations in 2011. In 2011, BOE’s main business income was 12,741,413,600 yuan, with a floating loss of 6,989,115,300 yuan. The company's recovery from losses mainly relied on the investment income of 460,475,100 yuan, of which a large part was obtained from the transfer of the equity of Ordos BOE Energy Investment Co., Ltd.
In order to turn losses, BOE made a series of measures in 2011, among which the adjustment of the company's fifth-generation TFT-LCD production line product structure is one of the measures. It can be seen from the 2011 interim report that the small and medium-sized TFT-LCD business performed much better than the large-sized TFT-LCD business. In the first half of 2011, the company's small and medium-sized TFT-LCD business revenue was 1,0818 million yuan, with a gross profit margin of 10.00%; while the large-size TFT-LCD business revenue was 3,0857 million yuan, with a gross profit margin of -19.56%. Throughout the year, the company's LCD panel business gross profit margin was -7.10%. The reason why the company's large-size business has a low gross profit margin is that, on the one hand, the company's 8.5-generation line is in a ramp-up period. On the other hand, the price of large-size LCD panels has been hovering at a low level is also an important reason.
Compared with BOE, the situation of Shentianma, which mainly deals in small and medium-sized LCD panels, is much better. In 2011, Shenzhen Tianma maintained a relatively high gross profit margin of 11.87%, with annual revenue of 4,649.6672 million yuan and a net profit of 101,133,300 yuan.
In the first half of 2012, BOE's product structure adjustments have achieved initial results. The launch of a series of new products may help the main business to achieve better performance. For example, in April, BOE launched a 5.0-inch ultra-high-pixel display with a resolution of 720*1280 and a pixel density of 294PPI, reaching the highest standard of high-end smartphone resolution. The launch of such products will help increase the company's main business gross profit margin, thereby improving the company's financial status.
In addition to LCD panels, my country's supply capacity of peripheral components surrounding LCD panels is also constantly improving. For example, in addition to companies with LCD panel production capabilities such as BOE and Shenzhen Tianma, companies that provide LED backlight modules such as Silan Micro and Sanan Optoelectronics, and companies that provide capacitive touch screen technology such as Leybao Hi-Tech and Changxin Technology, and even Rainbow shares, which initially possesses the ability to supply flat glass for LCD panels, is also an important part of the LCD panel-related companies in the A-share market.