[HOT]Good Prospects For PCB Equipment Vendors During Peak Season

[HOT]Good prospects for PCB equipment vendors during peak season

The operating results of the printed circuit board industry in the first quarter have been released one after another, affected by various factors such as trade war interference, global economic downturn, conservative customer stocking, long lunar holiday and other factors. In addition, it is also the low season of the traditional electronics industry. most manufacturers have a mediocre performance in the first quarter. the growth rate is not too great.

However, the performance of PCB equipment vendors is relatively bright. In terms of consolidated revenue in the first quarter, Mude (3563) and Qunyi Industrial (6664) both set a new high in the same period in history, while Zhisheng Industrial (2467) reached the second highest in the same period in history. Industry operators have expressed that the unstable factors of the general environment are slowing down. Seeing the peak season is approaching, the market trend is also very clearly, and they are optimistic about the market outlook.

       Mude’s revenue and profit in the first quarter reached new higher, with an after-tax profit of 6.13 yuan per share (NTD, the same below), an annual growth rate of nearly 30%. In terms of monthly revenue, even though the market is in the off-season, it is still maintained Even though it is growing in February, the revenue in March has also been a YOY growth for 34 consecutive months since June 2016. Mude believes that the seasonal off-season has passed, and the team will go all out to welcome the peak season.

        Qunyi's performance has grown steadily after winning index orders for FPC, COF, and automotive interior glass. The company pointed out at the Fasuo meeting that this year's market trend is nothing more than 5G, AI (artificial intelligence) / ML (machine learning) , Vehicles, there are many processes and materials involved, including 5G base floor, antenna/RF transmission, MSAP, fan-out packaging, COF packaging, ABF out-of-stock tide, etc. The entire market has been moving gradually, and many devices have also been stimulated. When demand is generated, the company also plans to expand its production capacity at the same time as the demand is clearly visible. The instability factors that are optimistic about the overall environment are slowing down, and the development trend of the electronics industry and market demand are clear. The visibility of orders is now in the third quarter, and the operation in the second half of the year is optimistic

         ZhiSheng said that the current feedback received from the client, although the market is conservative and the pace of plant expansion has slow down, the order has not been cancel, but it will come later. It is expected to be supported by orders for alternative purchase equipment, as well as in the mainland market. The demand for the chemical copper process (DSM - PTH) is expected to increase again, and the operations in the second quarter will gradually recover, and the full-year operating efforts will be the same as last year and strive to grow slightly.