Events:
Recently, Mr. Lin Guangwen, Deputy Director of Huazheng New Materials Marketing Department, said in an online interview with PCB007 China that the company has successfully developed a variety of CBF film series, mainly used in FCBGA, ECP (component packaging), Wafer layer addition, chip rewiring, chip plastic packaging and other process fields.
Comments:
Strategic layout of CBF laminated film to enrich the product line of IC carrier board. As the key packaging materials in the advanced packaging field, such as FCBGA high-density packaging substrate, chip rewiring medium layer, chip plastic packaging, chip bonding, chip bump bottom filling and other important application scenarios, CBF laminated insulating film has been monopolized by Japanese companies for a long time, with a market share of more than 95%. The company cooperates with Shenzhen Advanced Institute of Chinese Academy of Sciences and Institute of Electronic Materials to develop CBF insulating films. At present, many kinds of CBF insulating films have been successfully developed, which will effectively break through the current situation monopolized by overseas manufacturers. The company has laid out products such as copper clad laminate, composite materials and aluminum-plastic films for lithium battery packages, and are widely used in 5G communications, data exchange, new energy vehicles, smart home appliances, medical equipment, green logistics and other fields. The company will strengthen the research and development of CBF laminated insulating film, which will further enrich the company's IC carrier business product line and enhance technical capabilities, so as to expand the customer base and stabilize the industry position.
The market space of carrier board is broad, and the demand for insulating film driven by advanced packaging continues to grow. According to the forecast of Prismark, the global market space of carrier board will grow at a compound growth rate of 13.9% to US $19.5 billion in 2020-2025. China as an important global packaging market, the domestic IC package board industry will also maintain a rapid growth rate in the future. According to QYR data, the global laminated insulating film carrier market will reach US $4.368 billion in 2021 and is expected to reach US $6.529 billion in 2028, with a compound annual growth rate of 5.91%. Under the background that the production capacity of domestic advanced process is difficult to grow continuously, advanced packaging is expected to make up for the scarcity of advanced manufacturing in China, and then promote the continuous growth of market demand for laminated insulating film used in IC sealing and loading board. As the forerunner of the domestic CBF insulating film industry, the company is expected to fully benefit.
Cover for the first time, giving a "buy" rating. We are optimistic that the company will continue to invest in the field of CBF laminated insulating film, constantly improve its technical strength, and realize domestic substitution under the promotion of advanced packaging. It is estimated that the company's revenue from 2022 to 2024 will be 4.205 billion yuan, and the net profit will be 0.35 million yuan, with a corresponding PE of 1.16 billion yuan and 19.71 times, respectively.
Risk tip: downstream demand is lower than expected, customer introduction is less than expected, profit and valuation are lower than expected.