HDI Demand Is Urgent; Huatong Xinxing Shares Rise
Under the trend that mobile phone products are designed to be thinner and thinner in appearance and larger in screen size, the market demand for third-order HDI boards has been significantly driven since March. High capacity HDI board manufacturers, including Xinxing Electronics and Huatong, have benefited significantly, which has also driven Xinxing Electronics to rise by more than 5% in the second half of the market, while Huatong has stood at 20 yuan to expand to the bottom.
Xinxing Electronics, a PCB and IC carrier factory in the United Power Group, has seen its gross profit margin rise to 9.2% in the first quarter of 2014 under the demand for high-level HDI boards driven by mobile communications since March, and achieved the mission of turning loss into profit. Xinxing Electronics' after tax earnings in the first quarter were 87 million yuan, and its after tax earnings per share were 0.06 yuan.
The overall capacity utilization rate of Xinxing Electronics in 2014 was lower than 70%. It is estimated that in the second quarter of 2014, the capacity utilization rate of PCB will be increased to 70% - 80%, HDI will be increased to 80% - 90%, and IC carrier capacity utilization rate will be increased to 75% - 80%, while the soft board will still be weak in the second quarter, and the estimated capacity utilization rate will remain at 70% - 75%. It clearly shows that Xinxing Electronics' HDI boards above the third level in the second quarter are the main driving force for performance.
In the second quarter of 2014, Huatong's revenue in April will exceed the 2.54 billion yuan in March, and will push up to exceed the 2.6 billion yuan mark. In terms of HDI process, the capacity utilization rate of HDI process has also increased from 75% to 85% since April, helping to improve the performance in the second quarter. The revenue in April is also higher than that in March. It is estimated that the performance of the first and second quarters of 2014 will be significantly better than that of the same period last year.
The addition of HDI new capacity of Huatong Chongqing Plant in the third quarter will greatly improve the performance of Huatong.