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The stronger the technical ability of the upstream enterprise, the stronger the right to speak.
Let's take a look at this through Accounts Payable:
From 2015 to 2017, the accounts payable of Shennan Circuit were: 496 million yuan, 606 million yuan and 881 million yuan, accounting for 14.10%, 13.18% and 15.49% of operating income; The number of days of accounts payable turnover is: 60.24 days, 54.29 days, 60.64 days
Shennan's voice on upstream suppliers needs to be improved.
This is directly related to its focus on the field of communication and the need for special CCL and high-frequency CCL.
This business is a typical asset-heavy business, which requires a large amount of capital to build a plant in the early stage in order to have production capacity. Let's take a look at the fixed asset investment of enterprises through two subjects: "fixed assets" and "construction in progress".
From 2015 to 2017, the fixed assets of Shennan Circuit were: 2.745 billion yuan, 2.786 billion yuan and 2.854 billion yuan, accounting for 57.54%, 54.20% and 38.34% of the total assets; The projects under construction are: 115 million yuan, 109 million yuan, 253 million yuan, accounting for 2.42%, 2.11% and 3.40% of total assets; Fixed asset turnover ratios: 1.55, 1.66, 2.02.
In terms of fixed assets and projects under construction, Kingboard Chemical is far ahead, because in addition to PCB business (accounting for 19% of operating revenue), Kingboard Chemical also has copper clad laminates (accounting for 34% of operating income) and chemical products (accounting for 31% of operating income)
In addition, the largest amount of fixed assets is Shennan Circuit
Compared with the situation of Shennan Circuit over the years, let's take a look at the production capacity release and revenue growth:
There is a "lag positive correlation" between fixed assets and operating income, and more fixed assets often means that enterprises have more production capacity, can produce more products and increase operating income
Why is there a "hysteresis positive correlation"? Because after the completion of the construction in progress, it will be converted into fixed assets, and the fixed assets need to be debugged to reach a certain standard before they can be mass-produced, which in turn will drive income
With the carryover of construction in progress in 2014, fixed assets reached a short-term high in 2015, while the operating income in 2016 increased significantly (30.69%) compared with 2015.
It will take about a year for the production capacity of Shennan Circuit to ramp up
The efficiency of fixed assets, that is, the operating income that can be generated per unit of fixed assets, is used to judge the profitability of existing fixed assets.
Shennan Circuit, which ranks first in the domestic PCB industry, why is the fixed asset turnover rate much lower than that of other enterprises? Why is the fixed asset turnover ratio of Eaton Electronics and Kinwong significantly better than that of other companies?
The difference between each business, different PCB boards, and the severity of fixed assets are different.
Shennan Circuit - the development direction is IC packaging and testing substrate project and high-speed high-density multi-layer printed circuit board (which can be used for 5G high-density small base station requirements), which is one of the heaviest fixed assets
Kinwong Electronics - the original business was mainly rigid circuit boards, and later transformed into flexible circuit boards.
Suntak Technology – Small Batch PCB Production. As the name suggests, the production area of PCB is small, and the output value accounts for 10%-15% of the overall PCB market, and the market size is small
Combined with the production situation and the turnover rate of fixed assets, we can draw two development directions for domestic PCB enterprises
Predict the follow-up and listen to the next breakdown
It does not constitute any investment advice, the stock market is risky, and you need to be cautious when entering the market