Last week’s economic work conference was held, and it was clearly stated in the meeting to accelerate the pace of 5G commercialization. Opening today, the 5G sector immediately became the leading market for the market. However, the promotion of 5G commercial is currently only in the construction of infrastructure, and there are not many beneficiary companies. Most of the stocks are only using the good speculation or follow-up, and the risks are high. As an investor, you should keep your eyes open and do not blindly chase high. You should choose stocks that benefit in nature to pay attention. Among them, one sector has performed well today, and business development is inseparable from the construction of 5G communication – the PCB industry.
PCB Chinese name is printed circuit board, also known as printed circuit board. It is an important electronic component, a support for electronic components, and a carrier for electrical connection of electronic components. According to previous experience, the construction of 5G network, the first thing to solve is the base station.
The upgrade of the base station will definitely bring about a round of original base station transformation and new base station construction tide. On the one hand, because of the high transmission speed of 5G, its transmission requires a higher frequency band, but the electromagnetic wave coverage of the higher frequency band is smaller and the signal penetration is weaker. On the one hand, because the performance parameters of 5G are more stringent, operators in the 5G era need to deploy more. More base stations. In the future, 5G will adopt a multi-level ultra-tight networking mode. According to relevant industry forecasts, the future 5G macro base station will be 1.25 times that of 4G, and the average cost of a single base station will be 1.25 times that of 4G. The main reason is that 5G base stations will greatly increase the use of RF devices and antennas. From the perspective of a single base station, the increase in the number of antennas will increase the amount of PCB used; from the total amount, the increase in the number of base stations will double the demand for PCBs. In addition, because 5G has higher requirements on the frequency and speed of transmission, the demand for PCB products that can support high-frequency and high-speed transmission will increase accordingly. The laying of 5G base stations will increase the price and price of communication PCB products.
In fact, the PCB industry has developed to the present, and the application field covers almost all electronic products, mainly including communications, aerospace, industrial-controlled medical, consumer electronics, automotive electronics and other industries. Among them, communications, computers and consumer electronics have become the three major application areas of PCB. Not only communications, but also the rapid development of consumer electronics, especially automotive electronics, has driven demand in the PCB market, while downstream computer demand has remained stable. PCBs are expected to remain in a high-profile phase in the next few years.
Moreover, the overall trend of the global PCB industry is shifting to Asia. As a major electronics manufacturing country, China has attracted a large number of foreign and local PCB companies to invest in a huge domestic demand market and relatively low production costs, and promoted the explosive growth of China’s PCB industry in just a few years. At present, China has become the world’s largest PCB producer and one of the regions in the world that can provide the largest PCB capacity and the most complete product types. From 2008 to 2016, the output value of China’s PCB industry increased from US$15.037 billion to US$27.123 billion, with a compound annual growth rate of 7.65%, far exceeding the global growth rate of 1.47%.
In the first three quarters of 2018, China’s 23 A-share printed circuit board companies achieved a total operating income of 68.543 billion yuan, a year-on-year increase of 20.16%, and a net profit of 6.623 billion yuan, a year-on-year increase of 32.52%. In terms of distribution, except for a small number of companies whose performance has declined, most companies have maintained a good growth rate.
Today, at the time of the rise of the 5G sector, PCB-related stocks did not show weakness, and the increase far exceeded the broader market. Investors can keep an eye on it.