Military aluminum electrolytic capacitors tantalum electrolytic capacitors - Industry analysis

Recently, I looked at the field of military capacitors. Capacitance, resistance and inductance are the three major passive electronic components, accounting for 40% of the total components. Capacitors can be divided into ceramic batteries, aluminum electrolytic capacitors, tantalum electrolytic capacitors and thin film capacitors according to the material, among which ceramic capacitors account for the highest proportion, up to 43%.

Ceramic capacitors can be divided into single-layer ceramic capacitors (SLCC) and multi-layer ceramic capacitors (MLCC), among which MLCC occupies more than 90% of the market. MLCC is the main military capacitor, as well as a small part of tantalum capacitors.

Or, look at the industrial chain first.

Upstream is mainly aluminum, tantalum powder and other electrode raw materials, media materials, shell materials, etc., mainly includes China porcelain materials, Jimei Technology, Boqian New Materials and other companies.

The top three MLCC manufacturers are Hongyuan Electronics (24%), Hongming Electronics (23%) and Torch Electronics (17%). The major military tantalum capacitors are Zhenhua Technology (40%) and HTC (30%).

Downstream is specific military factories military products and equipment, such as China Aviation Shenyang Aviation, Hongdu Aviation, China Heavy Industry and so on.

The revenue of Hongyuan electronics is about 1.1 billion yuan, with its own MLCC capacitors accounting for 55% and all kinds of capacitor and resistor agents accounting for about 45%.

Torch electronics revenue of about 2.5 billion yuan, capacitor business accounted for 27%, divided into ceramic capacitors, tantalum capacitors and single-layer capacitors; Agent business accounted for about 67%.

HTC's revenue is about 900 million yuan, with its own production of capacitors accounting for 80%, mainly over 90% tantalum capacitors.

Zhenhua Technology's revenue is about 3.7 billion yuan, with electronic components (capacitors, resistors, voltators, etc.) accounting for more than 90%. As the revenue is not split, there is no data on specific business segments.

In terms of growth, companies are benefiting from high economic conditions in the sector. Among them, The performance fluctuation of Hongyuan and Torch is small due to the rapid growth of their agent business. Under the impact of the epidemic, their self-produced MLCC business has declined. The historical growth rate from high to low order is HONGda, torch, Hongyuan, Zhenhua.

In terms of return on investment, Hongyuan and HONGda have a relatively high rate of return. Hongyuan's turnaround was faster, but it raised more money on its books, so its turnover was pulled down a bit. HTC's net interest rate is high because of the high margin of the asset capacitance ratio.

In the future, MLCC has an absolute advantage over tantalum capacitors, mainly because of the MLCC space. Military MLCC has high specification requirements, and the fields mainly include military aircraft, aerospace, and ships. Mainly concerned with military aircraft replacement, satellite launch, naval construction scale these several aspects.

In the short term, the supply of the industry is less than the demand, so the overall price rises. At the same time, manufacturers are expanding production, and the intensive release period of capacity will be at the end of 2021, when there will be a wave of price cuts. As the situation of three pillars, Hongyuan, Hongming, torch basically carved up the market, torch electronic production expansion is more radical, the scale is larger, and Hongyuan's production expansion is faster.

In the short term, the capacity, but in the long term, the core competition lies in the ceramic powder and technical strength of MLCC raw materials. In the future, high-capacity MLCC is the mainstream, and Hongyuan and Torch are relatively strong in technology.

In the field of military accessories, products have high added value and high barriers, but the space in the segmented field is generally limited. It is not easy to come out of super giant companies, and it is more likely to be a number of segmented leading enterprises.