Since the beginning of the year, the performance of the electronic components sector far exceeded the expectations of investors. As of September 8 , the entire sector rose by 19.08% , while the Shanghai Composite Index and the Shenzhen Component Index rose by -16.91% and -13.38 respectively over the same period. % , far more than the broader market gains. The once-a-decade boom in the electronic components industry is the best explanation for the performance of the electronic sector. According to the latest semi-annual report, the overall income level and profitability of listed companies in electronic components have reached a record high.
In the third quarter, due to factors such as the European debt crisis and the lower than expected sales of consumer electronics products such as color TVs in the Chinese market, the downstream demand of the electronic components industry was experiencing a prosperous season. The performance of individual stocks also diverged. The stock price of the company with strong demand in the downstream market continued to hit a new high, while the share price of the company that was affected by the weak peak season was sluggish.
Quotes are dangerous ! Retailers should leave as soon as possible ? Which stocks are worth buying in full ? Some stocks are likely to rise by 50% ! Institutional funds have undergone major changes. Looking ahead, we believe that the performance of individual stocks in the electronic components sector continues to show a diversified situation. It is recommended that investors pay attention to LED , power semiconductor and Other sub-industry-related stocks. These sub-sectors have strong demand in the downstream market and their profitability continues to be positive. The stock price of related stocks will continue to perform.
From a global perspective, connector demand is returning to the upward path. Bishop & Associates expects global connector sales to reach US$ 38.271 billion with an annual growth rate of 11.3% . China is the world connector industry's fastest growing market, in 2010 the market size of China connector to $ 8.283 billion, year on year growth rate of 22.4%, far higher than the growth rate of 11.3% of the global market. The company is the professional electronic connector manufacturer with the largest scale and strength in China and will certainly benefit from the growth of the connector industry.
The company's DDR connector has already begun to supply Tyco. It is expected that the company will achieve the target of 8 million pieces / piece of additional capacity in the fourth quarter of this year. The CPU connector is expected to start volume at the end of the third quarter of this year. The company's auto connector and wire harness business shipments are less than 1 million yuan per month, which is in stark contrast to China’s market size of 60 billion yuan. We believe that in the future, as the company’s technical level in this area continues to increase, the company There will be a qualitative leap in revenue for automotive connectors and wiring harnesses. LED connector molds have come out, and production equipment has gradually been put in place. It is optimistic that preliminary production will be available in the fourth quarter of this year.
In the first half, the company's profitability improved significantly, net profit attributable to shareholders of parent company 4,324.23 million, a year earlier loss of 3,762.13 million. Gross margin of product sales was 29.59% , a substantial increase of 22.58 percentage points from the same period of last year. We believe that in the future, the company will continue to reduce the proportion of sales of low profitability products by expanding new product application areas, especially as the operating rate of the company’s 6 -inch power semiconductor production line continues to increase, and the company’s main business sales gross profit margin can also be improved.
The 6 -inch power semiconductor production line is the company's biggest attraction in the future. In the first half of 2010 , the company completed the development of the second-generation T- series VDMOS products and produced 11 products. Of these products, 6 products have been put into the market in batches, and are generally recognized by customers in switching power supplies, chargers, and LCDs . The third-generation JMH technology's VDMOS product has one sample output, and there are 4-5 models under development. The company plans to develop five generations of VDMOS products in the next five years, and on the VDMOS product process platform, it will cooperate with related design companies to develop IGBT products and make significant progress. The company has begun to provide samples for customers. The company's 6 -inch power semiconductor production line has a designed capacity of 30,000 chips per month, and its current output has reached 20,000 chips per month, basically reaching a break-even point. The product is in the promotion stage. We expect that the 6 -inch line will reach the designed capacity by the end of this year.
In the first half of this year, the company's gross profit margin increased, and its cost rate decreased during the period. The gross profit rate of the company's main business was 25.47% , an increase of 7.89 percentage points from the same period of last year. The supply of products was in short supply, and the company’s gradual increase in product prices was the main reason for the sharp increase in gross profit margin in the first half of the year. We believe that as the international IDM manufacturers expand their order transfer and the company's advanced packaging technology products are shipped on a scale, the gross margin of the company's products will remain stable in the future, and there is a possibility of improvement. During the period, the cost rate was 16.89% , which was a decrease of 2.4 percentage points from the same period of last year. The scale effect of the company will become more and more obvious in the future, and there will be room for reduction in the cost rate during the period.
The company is led by advanced semiconductor packaging and testing business, focusing on the development of SiP , WLCSP , extension products of copper pillar bumps, TSV , MIS and other packaging technologies. In the first half of this year, the company continued to increase the research and development of New Products and technologies. The company successfully developed products such as SiP RF module packaging products and MIS , and entered the customer sample stage. The company's holding subsidiary Changdian Advanced has already produced an annual production capacity of 1.2 billion WLCSPs . In the first half of this year, Changzhou's advanced WLCSP sales volume increased by 133% , satisfying customer needs. New products are the core competitiveness of the company. The company continuously develops new products to form new profit growth points.
The company is specialized in the production and sales of film capacitors and metallized films in China. The production scale ranks the largest in China and the third largest in the world. Downstream of the company's products are widely used in lighting, home appliances, communications, power supplies, automotive electronics and other fields, has become a major supplier of TCL , Konka, Alcatel, Huawei, ZTE, GE Lighting, Philips and other famous companies. In the field of downstream applications, the lighting field is the main application field of the company's products. About 45% of the company's revenue comes from the field of lighting, namely energy-saving lamps. Therefore, the market situation of energy-saving lamps has a significant impact on the company's performance. With the increasing demand for energy saving in the world, the replacement of incandescent lamps with energy-saving lamps has become a trend.
Layout new energy fields and open up new markets. The company's development in the field of new energy is mainly concentrated in the areas of new energy vehicles, wind power generation and locomotive power, among which the field of new energy vehicles has begun to be sold externally. The company's new energy automotive products are high-power thin-film capacitors and have now officially been supplied to BYD. We believe that with the promotion of new energy vehicles, the sales revenue of the company's high-power film capacitors may grow explosively in the future, making high-power film capacitors a new driving force for the company's rapid development.
In the first half of this year, the gross sales margin of products was 52.94% , a significant increase of 15.01 percentage points from the same period of last year. We believe that there are two main reasons for the significant increase in the profitability of the company's products: First, last year due to the financial crisis, the operating rate of the company was reduced, especially the operating rate of the TFT-LCD empty box production line was seriously insufficient, but the company's sales in the first half of the year Significant improvement, in which ITO conductive glass and color filter production equipment operating rate of more than 90% , TFT-LCD empty box production line production capacity to reach the designed capacity, touch screen production line at the end of the reporting period also reached the design capacity; Second, the company's product structure In response to changes, high-value touch-screen products began to contribute revenue. In the first half of this year, touch-screen products increased sales revenue by 10,458.4 billion yuan, which accounted for 22% of total sales. Sales revenue was zero during the same period last year, and TFT-LCD empty-box products achieved sales. Revenue was RMB 677.1 million, an increase of 41.19% over the same period of last year
The touch screen business is expected to become the company’s major source of revenue and profits in the future. The company continues to increase its investment in capacitive touch screen products and plans to invest RMB 161.37 million to build large-size capacitive touch screen projects. The company’s target market for large-size touch screen products is mainly emerging consumer electronics products such as tablet PCs, GPS navigators, and mobile information terminals. The project is expected to be completed and put into production in the fourth quarter of 2011. After the project reaches capacity, it will achieve an annual output of 4 million capacitive touch screens ( measured in 10 inches ) . We believe that the company will increase its investment in capacitive touch screen products in line with future market demand. The downstream demand of the company's large-capacity capacitive touch screen project is guaranteed.
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