S A Listed Company Of Foxconn, Pengding Holdings (002938) Continues To Maintain A Leading Position in The World

　From 2017 to 2020, the operating revenue of Pengding Holdings (002938.SZ) increased from 23.921 billion yuan to 29.851 billion yuan. According to the statistics of some institutions, in the past four years, Pengding Holding has maintained the No.1 position in the PCB industry in the world

    At present, Pengding Holdings produces printed circuit board products with a minimum aperture of 0.025mm and a minimum line width of 0.025mm, and has formed the mass production capacity of the next generation PCB SLP, which represents the higher order process requirements.
     The United States is the largest market of Pengding Holdings, and its revenue in the country has increased from 10.551 billion yuan in 2016 to 20.6 billion yuan in 2020, a 95.24% increase in 5 years and almost double.

　As the company continues to push forward the construction of investment projects, Pengding Holdings expects its main performance indicators, such as operating income and net profit, to grow by 10% to 20% in 2021.

1.Its revenue has exceeded 20 billion yuan for four consecutive years

Pengding holdings, formerly known as fukui precision components (shenzhen) co., LTD., was established in April 1999. In 2011, its parent company, Zhending Technology Holdings, a subsidiary of Foxconn, went public in Taiwan, China. In September 2018, Pengding Holdings was officially listed on the Shenzhen Stock Exchange.

　　Peng ding holding company is mainly engaged in all kinds of printed circuit board design, development, manufacture and sales of professional services company, focused on products and services for industry leading provide comprehensive PCB, according to different downstream end products for PCB customization requirements, providing customers with products cover PCB design, research and development, manufacture and after-sale each link of the overall solution

According to different downstream application fields, PCB products of Pengding Holdings can be divided into communication boards, consumer electronics boards, computer boards and other boards, and are widely used in mobile phones, network devices, tablet computers, wearable devices, notebook computers, server/storage and automotive electronics and other downstream products

　　Among them, the communication boards produced by Pengding Holding include flexible circuit printed boards, rigid printed circuit boards, high-density connection boards, SLP and other products, and the customers served include Apple, Google, Sony, Huawei, OPPO, Vivo and other leading domestic and foreign brand customers.

In the early days of its establishment, Pengding Holdings has been involved in the field of consumer electronics boards. Its main downstream customers include leading domestic and foreign brands such as Apple Inc., Google, Facebook, Amazon, Microsoft and Huawei.

　　According to the statistics of Prismark, a famous research institute on the electronic market, the total output value of the global PCB industry is estimated to reach 65.219 billion US dollars in 2020, with a year-on-year growth of 6.4%

Prismark predicts that the global PCB market will continue to grow in the next five years, with 5G, artificial intelligence, Internet of Things, Industry 4.0, cloud servers, storage devices, etc., becoming new directions to drive the growth of PCB demand

Among them, China, as the largest producer of the global PCB industry, will account for 53.7% of the total output value of the global PCB industry in 2020

   According to Prismark's ranking of global PCB companies by revenue from 2018 to 2020, Pengding Holdings has ranked as the world's largest PCB producer for three consecutive years from 2017 to 2019

　According to Prismark's February 2021 revenue forecast for global PCB companies, Pengding Holdings will remain the world's No. 1 company in 2020

2.Research and development expenses accounted for 4.57% of revenue

Being able to hold the top position of global PCB enterprises for a long time, Pengding Holding has outstanding technology

　Pengding Holdings has been focusing on and deepening PCB technology research and development for a long time, producing printed circuit board products with a minimum aperture up to 0.025mm and a minimum line width up to 0.025mm. At present, it has formed the mass production capacity of next-generation PCB SLP, which represents the requirements of higher order manufacturing process.

     At the same time, Pengding Holding has made a reserve of 5G-related product research and development technology in advance, and has gained the technical strength to produce 5G antenna and other key products. The company is also one of the few manufacturers in the industry that master MINILED backlight circuit board technology　　From 2017 to 2020, the R&D expenditure of Pengding Holding is 1.022 billion yuan, 1.223 billion yuan, 1.352 billion yuan and 1.259 billion yuan respectively, with a total of 4.856 billion yuan in four years, accounting for 4.57% of the operating revenue.

　In 2020, Pengding Holdings will continue to promote the construction of investment projects, and plans to invest in the third Huaian Park, Taiwan Kaohsiung soft plate and other major projects

　Up to now, the first phase of Shenzhen Plant No. 2 project has been completed and accepted, and has been partially put into production, the second phase of the project is accelerating construction; The raised projects "Expansion Project of Flexible Multilayer Printed Circuit Board of Qingding Precision Electronics (Huai 'an) Co., Ltd.", "High-level HDI Printed Circuit Board Expansion Project of Hongqisheng Precision Electronics (Qinhuangdao) Co., Ltd." and the Upgrade and Expansion Project of Huai 'an Comprehensive Protection Factory have been continuously promoted as planned. Among them, the "Hongqisheng Precision Electronics (Qinhuangdao) Co., Ltd. High-level HDI Printed Circuit Board Production Expanding Project" has been mostly put into production by the end of 2020, which further improves the company's market competitiveness in the field of High-level HDI (SLP).

     At the same time, the transformation and upgrading plan of Huai 'an No.1 Park has been smoothly promoted. After completion, the production technology level of the Park will be greatly improved. Construction of the third Huaian Park has officially started, and advanced SLP and high-order HDI plants will be built in the future

     In addition, Pengding Holdings has laid out a flexible board production line in Kaohsiung, Taiwan, China, which has started construction. The company's Indian campus will also be put into production in the first half of 2021. The company will determine its follow-up investment strategy in India and improve its global layout according to the economic and market environment

3.US. market revenue increased 95.24% over 5 years

After further release of domestic and foreign production capacity, the export volume of Pengding Holdings will also increase.

In terms of regions, in 2020, the operating income of Pengding Holding in the United States, Greater China, other Asian countries and Europe will be 20.6 billion yuan, 8.148 billion yuan, 110 million yuan and 5.8157 million yuan respectively, with year-on-year growth of 17.74%, 0.07%, 12.79% and 132.79% respectively

As long as we pay attention to, the operating income of Pengding Holding in the United States grows rapidly, from 2016 to 2019, it is 10.551 billion yuan, 15.132 billion yuan, 18.175 billion yuan and 17.497 billion yuan respectively, which increases by 95.24% and almost doubles in the five years to 2020

The PCB industry is projected to grow by 8.6% in 2021 and at a compound annual growth rate of 5.8% between 2020 and 2025, bringing the global PCB industry value to $86.325 billion by 2025

　　Pengding Holding said that the company layout in the global market, both localization and internationalization, continue to cooperate with the world's first-class customers and suppliers, to provide high value-added products and services. At the same time, the company has built a perfect Industry 4.0 manufacturing base, aiming to become the world's most competitive PCB enterprise and the most valuable listed company for investment as the development goal

Pengding Holding announced that in the first quarter of 2021, the company achieved operating revenue of 5.688 billion yuan, a year-on-year growth of 43.30%; Net profit was 351 million yuan, up 14.14 percent year on year.

At present, Pengding Holding has started the certification of radar board in the hardboard factory of Huaian No.1 Park, and the soft board has started to be supplied in small quantities by the mould factory of Tier 1. Automotive electronics needs to cultivate cycle. With the continuous improvement of the electronic and intelligent degree of automobiles, there will be a broad space for the demand of automotive electronic products in the future

Pengding has been in the automotive business for a short time and currently only supplies Tier 1 modules, the company said. At present, this business accounts for a small proportion of the company's revenue, but the company is optimistic about the future intelligent driving on the soft board and high-end hard board demand, is actively layout

According to the plan of Pengding Holding, the company will achieve operating revenue of 32.836 billion yuan to 35.822 billion yuan in 2021, total profit of 3.617 billion yuan to 3.946 billion yuan and net profit of 3.124 billion yuan to 3.408 billion yuan, all of which will increase by 10% to 20% compared with 2020.