Huazheng New Materials (603186) Listed company depth: Composite materials platform layout 5G high-frequency high-speed new materials take the lead

Huazheng New Materials (603186) Listed company depth: Composite materials platform layout 5G high-frequency high-speed new materials take the lead

Copper-clad laminates are the industrial foundation, and rely on the core technology platform to expand the field of composite materials. The company’s main products are copper-clad laminates, resonance materials, insulation materials, thermoplastic honeycomb panels and other composite materials and products, making Huali Group the only operating platform for new materials.

The company’s core management team has many years of experience in the industry, with rich experience and a sensitive market grasp.

Backed by continuous R & D investment and high-end R & D team, the company has four 爱北京体验网 proprietary core technology platforms: resin modification, interface treatment, stretching technology, and separation technology. In recent years, it has successfully developed high-frequency copper clad laminate products and thermoplastic materials around core technologies.New products such as aluminum plastic film have gradually realized the effective transformation from a single product manufacturer to a solution provider.

Breakthrough in high-frequency high-speed copper-clad laminates, Nuggets 5G communications and other new blue oceans With the arrival of 5G, the application scenarios of high-frequency high-speed copper-clad laminates have further expanded.

We judge that the scale of demand for high-speed copper clad laminates such as macro base stations, vehicle-mounted millimeter-wave radars, and 5G hardware equipment 青岛夜网 will gradually increase by more than 100 billion in 2018-2025, and the annual demand is expected to be nearly 20 billion.

And because of its high barriers, the competitive landscape is better.

Huazheng has built a preliminary advanced high-frequency copper-clad dedicated production line, and has researched and developed a variety of materials for 5G communication. It has taken the lead in the gradual 5G era.

In fact, the high-speed copper-clad laminate products have reached the mass production stage, benefiting from the continuous increase in demand for high-speed, high-performance servers.

After the cooperation and development with the end customers in the early stage, the company’s ultra-high-speed copper-clad laminate products have passed the terminal technology certification of some well-known enterprises, and have the qualification and ability to supply in batches. They have made great contributions in the 5G era.

Thermoplastic honeycomb panels have excellent performance and benefit from the lightweight trend of electric vehicles. Thermoplastic composite materials have the characteristics of short molding cycles and high impact strength. The company uses new energy logistics compartments as entry points for Dongfeng, Jiangling, Yutong, Iveco and other domestic brand vehicles.Manufacturers supply thermoplastic honeycomb panels for passenger compartments and accessories to comply with the lightening trend brought by the expected demand for energy saving in automobiles, and will benefit from the explosive growth in demand for lightweight materials for new energy vehicles.

The demand for aluminum-plastic films for lithium batteries continues to grow at a rapid rate. Domestic alternative space aluminum-plastic composite films (aluminum-plastic films) are the key materials for flexible packaging of lithium battery cells, filling 18% of the cost of soft-pack lithium batteries.With the increase in battery penetration, the demand for aluminum-plastic films will continue to grow at a rapid rate, and is expected to exceed 9.6 billion in 2020.

Due to the high biological quality of the technology, the localization rate of aluminum plastic film is less than 10%, and there is a large space for import substitution.

In recent years, domestic manufacturers’ technology has become increasingly mature and gradually has mass production capabilities.

Based on the composite material technology platform, the 5 million square meter aluminum plastic film project is expected to be put into production in 2019, becoming a new profit growth point.

For the first time, it is recommended to buy the company’s estimated 2018-2020 net profit is 0.

96, 1.

27, 1.

67 trillion, EPS is 0.

75, 0.

98, 1.

At 29 yuan / share, the current corresponding PE is expected to be 36, 27, and 21X. Considering the scarcity and better breakthrough of the company’s 5G application materials, the target price of 39x is given for 40x PE in 1919.

36 yuan / share, covering for the first time, give “Buy” rating.

Risks suggest that the price of FR4 copper-clad laminate fluctuates, and the market expansion of new products fails to meet expectations.