The output value of flexible circuit boards continues to grow steadily: flexible circuit boards have the advantages of high wiring density, thin and light, flexible, and three-dimensional assembly. They are suitable for electronic products that require miniaturization, light weight, and mobility. A smart phone requires about 10-15 flexible circuit boards, and almost all modules are involved. This year's new iPhone is expected to continue to increase the use of flexible circuit boards to 18-20. In addition, a car requires more than 100 flexible circuit boards, and the amount of flexible circuit boards used in other electronic products varies from 2-15. In the future, as consumer mobile electronic products, mainly smart phones and wearable devices, continue to develop toward miniaturization, thinness and thinness, as well as the development of automotive automation, networking and electrification, flexible circuit boards will develop rapidly. According to Prismark, the annual output value of flexible circuit boards will exceed US $ 12.5 billion in 2021, accounting for more than 20% of printed circuit boards.
End product innovations have created new demands for flexible circuit boards: 1) The innovative features of smart phones have pushed the use of flexible circuit boards to a new height: the arrival of the era of full-screen display is expected to promote the re-layout of flexible circuit boards in the entire industry chain of mobile phone modules, and the widespread use of flexible OLED screen The application will greatly stimulate the demand for flexible circuit boards with flexible characteristics. The comprehensive penetration of fingerprint recognition will drive the demand for flexible circuit boards. The fingerprint recognition scheme under the screen is expected to promote the development of flexible circuit boards towards ultra-thin and ultra-narrow double-layer boards, while wireless charging The demand for flexible circuit board coils will also increase significantly. 2) The trends of automotive automation, networking and electrification have created new opportunities for the flexible circuit board market: the proportion of automotive electronics costs continues to increase, bringing new growth momentum to the flexible circuit board and promoting the significant increase in the output value of the flexible circuit board. 3) The rapid expansion of wearable devices has created a demand for thin and light flexible circuit boards: flexible circuit boards are highly compatible with wearable devices. The rise of the wearable market, especially VR and AR technologies, will make flexible circuit boards one of the biggest beneficiaries.
Domestic flexible circuit board manufacturers are accelerating the rise: the output value of flexible circuit boards in mainland China continues to rise, accounting for 50% of the global proportion. From the perspective of competition, Korean, American and Japanese companies occupy the leading position in the industry, and Dongshan Precision merges and acquires American flexible circuit board manufacturers MFLX has become the only domestic flexible circuit board manufacturer in the first-class echelon. We believe that market demand superimposes the positive impact of industrial transfer. With the support of sufficient funds, local companies are gradually moving closer to high-end flexible circuit board products, which is expected to quickly reach the international first-class level. From the upstream point of view, flexible copper clad laminates account for about 40-50% of the cost of the entire flexible circuit board product. Mainland China ranks third in the world with a 21% output value. At the same time, the flexible circuit board processing process is complex and requires many equipment. It is high and basically monopolized by foreign countries. China's local material and equipment companies are seeking breakthroughs in international competition. In the future, with the localization of the upstream chain of the flexible circuit board upstream industry chain, it will greatly enhance the competitiveness of local flexible circuit board companies on the cost side. From the downstream point of view, iPhone8 has great innovation and optimistic shipment prospects. Local flexible circuit board manufacturers in the industry chain will directly benefit. At the same time, the continuous increase in the market share of domestic smart phones will also be positively transmitted to domestic flexible circuit board companies.
Investment advice and investment target
Consumer electronics innovation and the rapid development of the automotive electronics market have bred broad development opportunities for flexible circuit boards. The layout of domestic flexible circuit board companies has gradually matured and their competitiveness has continued to increase. At the same time, with the deepening of the localization of the industrial chain, we are optimistic about domestic flexible circuits Investment opportunities in the board industry.
It is recommended to pay attention to domestic companies that vigorously lay out and occupy a leading position in the field of flexible circuit boards, such as Dongshan Precision, Helitai, Hongxin Electronics, Jingwang Electronics. At the same time, it is recommended to pay attention to the domestic flexible circuit board upstream materials and equipment related companies Guangyunda, Shengyi Technology, Danbang Technology.