Among domestic Apple suppliers, PCB maker Eton Electronics is quite low-key. Eton's electronic PCB business has been developed in the fields of consumer electronics and automotive electronics. The company's performance in recent years has shown a steady growth trend.
However, from the first half of the A-share 31 PCB concept stocks, the net profit of Eton Electronics is not outstanding; instead, the dividends in the first half of the year exceeded 700 million yuan, and the dividends for the five-year period of the listing exceeded 2.6 billion yuan. Up to 277.78%, Yiyton Electronics has become the focus of the industry and investors. However, why the performance of the general Eton Electronics is so "generous", the reasons behind it are worth exploring.
Consumer electronics PCB indirect supply of apples
From 2014 to the first half of 2019, the distribution rate of Eton Electronics surged from 28% to 278%. Among the listed companies in the mobile phone industry chain, there are not many manufacturers with such dividends.
From the perspective of Eton's shareholding structure, the high degree of “right” means high dividends, and the high-light effect of dividends returns to the product itself. Eton Electronics enters the supply chain system such as Apple Huawei, which is also a major attraction. .
It is reported that the main product circuit board of Yidun Electronics can be divided into double-panel, four-layer board, six-layer board, eight-layer board and above according to the number of layers. The products are widely used in automotive electronics, communication equipment, consumer electronics, computer, industrial control. And other downstream industry products.
In 2012, Eton Electronics set the number one multi-layer board production in China and became a major supplier such as Huawei, Flextronics and Jabil.
Then, in 2014, Eton Electronics successfully listed on Apple's Top200 supplier list and became one of Apple's main PCB suppliers. The main products are the supporting boards for iPhone and iPad, and there are also a small number of applications on the Mac.
In the same year, Eton Electronics was listed on the Shanghai Stock Exchange and intends to publicly issue no more than 120 million ordinary shares to the public. The proceeds raised after deducting the issuance expenses will be used for “annual production of 1.1 million square meters of multi-layer printed circuit board project” and “year Production of 450,000 square meters of HDI printed circuit board project."
It is worth noting that in 2018, Eton Electronics changed the HDI project to “a multi-layer printed circuit board project with an annual output of 700,000 square meters”, and the “multi-layer printed circuit board project with an annual output of 1.1 million square meters” has been put into production. At this point, Eton Electronics has rapidly expanded its multi-layer printed circuit boards of four and eight layers to accelerate the deep-growing of automotive circuit boards and other product areas.
Automotive PCB business
The industry is well aware that in the first half of 2019, due to the shrinking influence of Sino-US trade wars and downstream terminal electronic products, the global PCB industry growth rate slowed down, and Eton Electronics was not spared.
According to Yideng’s first-half financial report, revenue was 1.45 billion yuan, down 4.05% year-on-year; net profit attributable to listed company shareholders was 259 million, an increase of 2.52% year-on-year.
It is worth noting that, thanks to the high value-added product structure, Eton Electronics' net profit margin in the first half of the year reached 17.2%.
Among them, the high value-added products of automotive electronics and communication customers have gradually become the "top pillar" of Yideng Electronics' performance in the fierce market competition, and it is also an important business of Yidun Electronics.
It is worth mentioning that Huawei is also targeting the automotive industry, driven by new technologies such as artificial intelligence and 5G. In April this year, Huawei and Dongfeng Motor cooperated to create an intelligent car at the Shanghai International Auto Show. Huawei's entry into the high-tech configuration of its in-vehicle communications, 5G and cloud data centers will also strengthen the strength of the smart car supply chain.
At the same time, since 2014, Eton Electronics, which has deployed automotive electronics, has maintained its automotive PCB business as an average annual revenue of 20%. In 2018, it accounted for 39% of total revenue, becoming Valeo and Delphi. , Bosch, the mainland and other first-tier international Tier1 manufacturers.
Yideng Electronics, which is deeply involved in the automotive electronics business, relies on the supply strength of international first-tier auto manufacturers, and it has successfully entered the Huawei auto business supply system at the right time.
Although the current automotive electronics market is not optimistic, driven by new technologies such as artificial intelligence and driverless driving, the demand for automotive PCBs such as automotive power systems and DAS systems has increased significantly due to the demand for intelligent electronics. . Compared with the traditional single-car application, the PCB area is 0.5-2 square meters, the luxury car is 2-3 square meters, and the PCB area of the new energy vehicle application is 2-4 square meters, and the automotive PCB application area is greatly improved. .
According to the report of Guojin Securities, with the improvement of the intelligentization of automobile electrification, the value of automobile bicycle PCB is expected to increase from 60 US dollars for fuel vehicles to 800 US dollars for high-end electric vehicles. Automotive PCBs will also be the fastest growing PCB industry. Fine molecular industry. The data shows that the estimated size in 2018 is $5.5 billion, an increase of 3.8% year-on-year. By 2020, it is expected to grow to a compound annual growth rate of 3% to $59 trillion.
In this context, as a deep-rooted automotive electronic PCB field for many years, Eton Electronics also coincided with this wave of dividends. However, it should not be overlooked that one side is a large dividend, while the major shareholder “Yidun Investment” continues to reduce its holdings. How Yideng Electronics stabilizes its position in the PCB field and continues to expand its advantages in the automotive PCB field is worthy of attention.