Huazheng New Materials (603186) Research Report: Leading company in next-generation copper clad board upgrades and expands production to meet 5G

Huazheng New Materials (603186) Research Report: Leading company in next-generation copper clad board upgrades and expands production to meet 5G

Copper clad laminates are upgraded and new types of composite materials are continuously extended.

The company achieved revenue of 16 in 2018.

78 ppm, an increase of 10 in ten years.

85%, net profit attributable to shareholders of listed companies is 7508.

30,000 yuan, a decrease of 19 per year.


The main products are copper clad laminates, insulation materials, thermoplastic honeycomb panels, and aluminum-plastic composite films in a wide range of end markets such as computers, communications, electrical and electronics, instrumentation, consumer electronics, transportation and logistics.

Among them, the revenue of copper clad laminates accounts for nearly 70%, and the gross profit contribution is nearly 60%. The company welcomes 5G to actively upgrade and transform copper clad laminate products, and at the same time actively promotes the 合肥夜网 expansion of new materials, and is committed to becoming high-end electronic basic materials and special composite materials.Total solution provider for new material applications.

Overlay the 5G field layout and seize the opportunity of high-frequency and high-speed copper-clad laminates.

The high-frequency and high-speed characteristics of 5G promote the upgrading of base station antennas. At the same time, the number of base stations has increased compared with the previous 4G, and the demand for high-frequency CCL materials at the RF front-end has increased significantly.

The company has built an advanced production line for high-frequency copper clad laminates, and developed a series of high-frequency materials suitable for 5G (PTFE H5 series and non-PTFE type HC30 and HC35 series products), using Huawei ZTE in the 5重庆耍耍网G era worldwideThe voice of communication equipment continued to improve, and the company’s products surpassed the high cost performance expectation to form a breakthrough in the penetration field covered by US and Japanese manufacturers such as Rogers.

The market prospects for thermoplastic honeycomb panel materials and aluminum plastic film products are considerable.

The thermoplastic honeycomb panel material meets the lightweight demand of new energy vehicles, and the penetration rate is expected to gradually increase. Through the second phase of production expansion and technological upgrading, the company has now produced a honeycomb material production capacity of about 3.8 million square meters per year.Consolidate the foundation for sustainable development of the industry.

The aluminum plastic film products cut the domestic lithium-ion battery manufacturers to reduce cost requirements, and the import substitution space is wide. The company’s aluminum-plastic composite film project for lithium battery cells has also successfully entered the equipment debugging and trial production stage.The company provides new industry growth points.

Profit forecast and investment recommendations: Optimistic about the company’s breakthrough in CCL materials in the 5G period, new composite materials are continuously extended, and the net profit attributable to mothers is expected to be 1 in 2019-2021.

25 billion, 1.

7.4 billion, 2.

3.5 billion, the current expected corresponding dynamic PE is 30 times, 22 times, 16 times, the first coverage, given a “buy” rating.

Risk Warning: Intensified Competition in Copper Clad Laminate Industry