SCC(SZ:002916)2024-07-04 14:14Group 1: Company Overview and Business Focus - The company is engaged in high-end PCB design, research, and manufacturing, with a focus on communication equipment, data centers, automotive electronics, industrial control, and medical fields [2] - The PCB business has a long-term focus on the communication sector, covering various wireless and wired communication PCB products [2] - The automotive electronics sector is a key area for expansion, targeting both domestic and overseas Tier 1 customers, with a focus on new energy and ADAS applications [3] Group 2: Market Trends and Demand - There has been no significant improvement in demand for wireless communication base station products since Q4 2023, while demand for wired products like switches and optical modules has increased [2] - The acceleration of AI development is driving demand for high-performance and high-speed PCB products in sectors such as high-speed communication networks and data center switches [3] - The company is focusing on opportunities in the new energy and ADAS sectors within the automotive electronics field, aiming to develop targeted projects [3] Group 3: Packaging Substrate Business - The demand for BT-type packaging substrates has continued the trend from Q4 2023, with adjustments in product structure based on downstream demand [3] - The company has achieved leading capabilities in mass production of various packaging substrate forms, including FC-CSP products, and is advancing in high-layer products [3] - The company faces technical challenges in developing new high-end products and plans to enhance its R&D capabilities and attract industry experts [3] Group 4: Operational Metrics - The PCB factory's operating rate has increased compared to Q1 2024, while the packaging substrate factory's operating rate remains stable [3] - The company’s electronic assembly business focuses on communication, data centers, medical, and automotive electronics, leveraging its PCB technology platform for value-added services [4] Group 5: Raw Material Prices and Impact - The prices of key raw materials have remained stable from 2023 to Q1 2024, although some prices for precious metals and certain board materials have increased recently [4] - The company is monitoring international commodity price changes and maintaining communication with suppliers and customers to mitigate potential impacts [4]