Event: recently, the prices of coal, iron ore, steel, zinc and other kinds of resource products have risen one after another. According to the evening of July 8, overnight LME copper futures reached US $6232 per ton, soaring to the highest level since January. It is recommended to pay attention to the layout of high-precision copper foil manufacturers Chaohua Technology.
The comments are as follows:
Layout of high-precision lithium copper foil, benefit from IDC, new energy vehicle volume. According to CCFA and New Horizon Studio, copper foil for PCB is expected to reach 470000 tons in 2020, and lithium copper foil is expected to reach 189000 tons. However, as the formula, technology and equipment of copper foil are mainly in foreign hands, domestic 12um electrolytic copper foil is only mass produced in Suzhou Futian, Anhui Copper Guan Copper foil, Lingbao Huaxin, Chaohua Technology and so on. According to the announcement, Chaohua Technology already has the mass production capacity of the highest precision 6um lithium copper foil. The company's annual output of 8000 tons of high-precision electronic copper foil project phase II project will add 8000 tons of copper foil production capacity, when the company's copper foil production capacity will reach 20, 000 tons, while downstream with cloud computing, storage, new energy vehicles for PCB, copper foil and so on a lot of demand: take IDC demand as an example, according to Prismark forecast, IDC use PCB in the next five years compound growth rate of 5.8%, is expected to bring 25.1 billion high-speed copper clad laminate demand As an important raw material of copper clad laminate, copper foil accounts for 30% of the cost of copper clad laminate, accounting for 50% of the cost of copper clad lamin. with the rapid growth of high frequency and high speed copper clad laminate, the company will expand copper foil to enjoy the development dividend.
5G high-frequency and high-speed copper foil accelerated release. High-frequency and high-speed transmission under 5G technology brings higher requirements for special material copper clad lamins. the traditional copper clad laminates are difficult to meet the requirements in dielectric constant, loss factor, thermal expansion coefficient and so on. High-frequency high-speed boards bring a lot of demand. The company continues to substantially increase its R & D investment, which is about 67.83 million yuan in 2018, an increase of about 94% over the same period last year. And the company, together with South China University of Technology and Harbin University of Technology, has developed "nanometer paper-based high-frequency and high-speed substrate technology" to bring certain technical reserves. In 2019, the company successfully developed RTF copper foil which can be used in 5G communication, and has completed the shipment. At the same time, according to the announcement, the company has supplied 6 μ m lithium copper foil in bulk, and has successfully developed 4.5 μ m lithium copper foil.
The company will continue to promote the research and development of high-end HDI copper foil, VLP copper foil, HVLP copper foil and very thin copper foil to further enrich the products in the field of high-end electronic circuit copper foil.
Profit Forecast: we predict that the company's 2020amp revenue in 2021 will be 1.290.1622 billion yuan respectively, and its net profit will be 0.2220000 million yuan, corresponding to PE 48Univer 35. On the whole, the company's focus lies in the expansion of high-precision copper foil and high-frequency copper clad laminates to benefit from domestic substitution and downstream demand, and maintain the "overweight" rating.
Risk hint: downstream demand is lower than expected: customer certification such as copper clad laminate is not as expected; capacity expansion slows down