SCC(SZ:002916)2024-05-31 11:13Group 1: Business Performance Overview - In Q1 2024, the demand for wireless orders in the communication sector did not show significant improvement compared to Q4 2023, while demand for wired switches and optical modules increased [2] - The data center sector continued to see a quarter-on-quarter growth in order demand, primarily driven by the Eagle Stream platform and the rising demand for AI accelerator cards [2] - The automotive sector maintained opportunities in the new energy direction, while industrial control and medical sectors remained stable with relatively small demand [2] Group 2: Impact of AI on PCB Business - The evolution and deepening application of AI have intensified the ICT industry's demand for high computing power and high-speed networks [2] - There is a growing need for edge computing capabilities and high-speed data exchange in various terminal applications, driving demand for high-frequency, integrated, miniaturized, lightweight, and high-heat-dissipation PCBs [2] - The company's PCB products in high-speed communication networks, data center switches, AI accelerator cards, and memory are expected to be positively influenced by these trends [2] Group 3: HDI Technology and Product Layout - The company possesses HDI technology capabilities, including Any Layer interconnection, applicable in mid-to-high-end products in communication, data centers, industrial control, medical, and automotive electronics [3] - The demand for packaging substrates in Q1 2024 continued the stable trend from Q4 2023, with BT packaging boards maintaining stable mass production [3] - The company is the largest domestic supplier of packaging substrates, with mass production capabilities for various packaging forms and leading competitive advantages in certain niche markets [3] Group 4: Operational Efficiency and Expansion Plans - The overall utilization rate of the company's PCB and packaging substrate businesses has improved compared to Q4 2023 [3] - The company is investing 1.274 billion RMB in a factory in Thailand to expand overseas markets, with the registration of the subsidiary completed and land purchase agreements signed [4] - The construction timeline for the Thai project will depend on subsequent progress and market conditions [4] Group 5: Raw Material Price Trends - The prices of key raw materials such as copper-clad laminates, prepregs, copper foil, gold salts, and inks have remained relatively stable from 2023 to Q1 2024 [4] - Recent fluctuations in commodity prices have led to increases in the prices of precious metals and some board materials, but these have not yet directly impacted the company's operations [4] - The company will continue to monitor international commodity price changes and maintain active communication with suppliers and customers [4]