Industry Investment Rating - The electronic components sector, particularly the passive components and PCB industries, is rated as "Outperform" due to a significant recovery in market conditions and improved profitability in Q1 2024 [1][2][4] Core Views - The passive components industry has shown a clear recovery in Q1 2024, with downstream demand for consumer electronics driving growth and improving profitability [2][3] - The PCB industry is experiencing an upward cycle, with AI-related infrastructure driving demand for server PCBs, leading to significant profit growth in Q1 2024 [4][5] - Raw material price fluctuations, particularly in copper, are impacting the PCB industry, but the overall supply-demand balance has improved, mitigating some of the cost pressures [5] Passive Components Industry Growth Capability - The passive components industry saw a significant improvement in revenue and net profit growth in Q1 2024, with consumer electronics-focused companies like Sanhuan Group and Sunlord Electronics outperforming [2] - Revenue growth for Sanhuan Group, Sunlord Electronics, and Fenghua Advanced Material increased by 31 5%, 22 9%, and 13 3% YoY respectively, while net profit growth surged by 35 3%, 111 3%, and 25 0% YoY [2] Profitability - The industry's gross and net profit margins improved YoY, with consumer electronics companies showing better performance compared to those focused on new energy [2] - Sanhuan Group, Sunlord Electronics, and Fenghua Advanced Material reported gross margins of 40 1%, 36 9%, and 16 8% respectively, with net margins of 27 7%, 15 6%, and 6 9% [2] Operational Efficiency - Inventory turnover days decreased significantly, indicating faster inventory turnover, while accounts receivable turnover days increased slightly, partially offsetting the improvement in inventory turnover [3] - Sanhuan Group, Sunlord Electronics, and Fenghua Advanced Material saw inventory turnover days decrease by 58 6 days, 22 3 days, and 12 0 days respectively [3] PCB Industry Growth Capability - The PCB industry experienced a strong recovery in Q1 2024, with AI server-related companies like Wus Printed Circuit and Shennan Circuits leading the growth [4] - Wus Printed Circuit and Shennan Circuits reported net profit growth of 157 0% and 83 9% YoY respectively [4] Profitability - The industry's gross and net profit margins improved QoQ, with Wus Printed Circuit showing the most significant improvement due to high growth in AI server and HPC-related PCB products [4] - Wus Printed Circuit's gross and net margins increased by 8 13pct and 8 94pct YoY respectively [4] Operational Efficiency - Inventory turnover days decreased, and accounts receivable turnover days showed mixed trends, indicating an overall improvement in operational efficiency [4] - Inventory turnover days for the PCB industry decreased by 7 5 days and 9 5 days for CITIC and Shenwan indices respectively [4] Raw Material Impact - Rising copper prices have led to increased costs for key PCB raw materials like copper-clad laminates, but the industry's improved supply-demand balance may limit the impact on profitability [5] - Copper prices rose from 9,737/ton by May 3, 2024, driving up the cost of copper-clad laminates [5] Investment Recommendations - The electronic components sector is expected to continue its recovery in 2024, driven by the AI wave and the recovery in consumer electronics [5] - Key companies to watch include Sanhuan Group, Sunlord Electronics, Wus Printed Circuit, and Shennan Circuits [5]
电子行业24Q1季报总结：元器件板块：24Q1景气度明显回升，重点关注消费电子、AI相关标的
德邦证券·2024-05-06 01:30