Suntec Technology (002815): Enjoy 5GPCB Orders Overlap Bonus, Suntec’s Best Fourth Person

Suntec Technology (002815): Enjoy 5GPCB Orders Overlap Bonus, Suntec’s Best Fourth Person

The 5G base station construction process is accelerating, which has led to the demand for the 5G PCB industry.

The 5G substrate PCB increase mainly comes from AAU. The PCB value of a single substrate AAU is 10,000-11,000 yuan, which corresponds to an average PCB price of 4500-4600 yuan / square meter. We estimate that the global 5G substrate PCB scale in 2019-2021 will be 25/102/156.USD 5 million, corresponding to the global new demand of USD 25/77 / 5.4 billion; the domestic 5G AAUPCB market size is USD 1/68 / 10.4 billion, and the corresponding domestic new demand is USD 1/53 / 3.6 billion.

Marginal supply and demand in the industry has tightened, supporting product prices.

Domestic-funded equipment manufacturers are seeking domestic PCB suppliers. It is predicted that in 2020, the top five domestic high-speed PCB suppliers for 5G business will increase their output value to 36.

300 million yuan, less than the domestic 5G increase in demand53.

0 ppm, coupled with some overseas 5G equipment vendors delivering orders to domestic PCB suppliers, marginal supply and demand tightened.

There is no doubt that the high-end US-funded manufacturers that were originally known for the communications board business are in trouble. The transfer of downstream customers to domestic manufacturers has exacerbated the tight form of communications high-speed board capacity and supported the price of 5G communications high-speed boards.

Suntec has cut into ZTE’s supply chain system, contributing to domestic marginal production capacity and enjoying overlapping dividends from orders.

The company’s technology and product stability and other indicators have crossed the core equipment business biology, supplying AAU PCB system boards with a higher level of technology, and the technical capabilities can be consistent with those of head suppliers.

The average price of AAU products is much higher than the company’s average unit price of 1200-1300 yuan / square meter. The adjustment of the product structure will increase the company’s 苏州夜网论坛 profit.

If the connector manufacturer Shennan Circuit (002916.

Shenzhen), Hudian shares (002463.

SZ) squeezed out orders with an average price of 1500-2000 yuan / square meter, profitability will also improve.

Investment suggestion: We expect the company to return to its mother net profit for 2019/2020/20216.

40/8.

02/11.

Taking into account the company’s accelerated 5G high-speed PCB business, the company will give the company a target price-earnings ratio of 30 times 2020 and a target price of 28.

80 yuan, the first coverage, given a “buy” rating.

Risk warning: competition in the high-frequency and high-speed PCB industry is intensifying, downstream equipment manufacturers adopt standardized solutions, and Zhuhai ‘s first phase of production expansion is not up to expectations, the risk of major shareholders 成都桑拿网 lifting the ban, and trade dispute risks.