Aihua Group aishi aluminum electrolytic capacitor net profit rose 31% in the first half

On the evening of August 3, Aihua Group disclosed the 2021 semi-annual report, the first half of this year's operating revenue of 1.514 billion yuan, a year-on-year growth of 40.47%; Net profit was 232 million yuan, up 31.47% year-on-year. Liu Congying, investment and financing director of Aihua Group, said: "The capacitor industry continues to improve, and orders from downstream industrial customers are rapidly increasing, driving a significant increase in sales of the main business. We took advantage of opportunities to expand into new markets and increased sales and profits."

In addition to Aihua Group, leading capacitor enterprises such as Jianghai capacitor Group and Fenghua Hi-tech Are also laying out new energy, advanced energy storage, communication and consumer electronics and other emerging markets. It is believed that the global capacitor industry is facing the supply and demand mismatch caused by the impact of the epidemic, and is brewing a new round of price increase. Part of the orders are turned to domestic, combined with the vigorous development of domestic downstream industry, which will jointly promote the capacitor industry prosperity and bring substantial positive results to the performance of domestic manufacturers.

Leading enterprises in capacitor industry explore new markets

"While serving existing customers well, we focus on developing new energy, photovoltaic, industrial control, new energy vehicles and other new markets. In order to grasp the customized needs of customers, process engineers are assigned to each division to ensure that technology is responsible for the production process, and that theory, technology and quality control are synchronized." Cong-ying Liu added, "We are actively cooperating with our downstream customers in the localization of supply actions, in the capacitor supply chain to carry out strong and complementary measures, to stabilize and optimize the supply chain as the main goal. Firmly grasp the core link of the capacitor supply chain, enhance the toughness of the capacitor supply chain in the face of all kinds of impact and pressure. Through self-sufficiency of materials and flexible allocation of procurement center, it is expected to achieve a tight balance of capacitance supply throughout the year."

"According to Paumanok statistics, Aihua group ranks fourth in the world and first in China in the field of aluminum electrolytic capacitors," said Yang Haiyan, analyst at Shenwan Hongyuan Electronics. Aihua Group aims at high-end products and new application fields, builds the advantage of the whole industry chain of core raw materials, production equipment and related management software, greatly improves the self-supply rate of foiling, and realizes the gross profit rate higher than that of the same industry. We have a 'buy' rating on our first coverage."

Xiong Xiang, professor of materials engineering and doctoral supervisor at Central South University, expressed cautious optimism about the domestic capacitor industry with a positive economic outlook: "In recent years, as China's capacitor industry becomes more intensive, so does its professionalism and upstream and downstream supporting capacity. At present, although the domestic capacitor industry has a high proportion of low-grade products, high-grade products rely on imports, but the domestic capacitor is gradually narrowing the gap between the imported capacitor."

Gu Qun, secretary general of China Electronic Components Industry Association, believes that the window to ride the wave has arrived: "Due to the proper control of COVID-19, domestic capacitor manufacturers have resumed production, attracting some orders to China. The capacitor downstream industries such as 5G communication, mobile phone quick charging, new energy and computer equipment are in good shape, leading to the rapid rise of domestic capacitors. Taking aluminum electrolytic capacitors as an example, we estimate that in 2021, the global market size of aluminum electrolytic capacitors will reach 53.97 billion yuan, with a year-on-year growth of 5.6%, and the global demand for aluminum electrolytic capacitors will be about 141 billion, with a year-on-year growth of 6.7%. Driven by order transfer, concentrated production capacity and technological progress, the domestic capacitor industry has come to a natural rise.

Aihua Group not only aims at the new field of force, Jianghai Shares, Fenghua High-tech and other leading enterprises in the capacitor industry also save enough energy to explore the emerging market, and the future of the capacitor industry to see a high line. Wang Hanming, vice president and secretary of the board of Directors of Jianghai, introduced relevant information when replying to investor research: "Our supercapacitor is in full production and has been used in intelligent three meters, automobile ETC, wind power converter, smart grid transformation, rail transit and other fields. Our bus project in cooperation with Golden Dragon Bus will be off the production line for trial run in August. Currently, our three major categories of capacitors are used in advanced energy storage. Combined with the above, the company's main business is expected to maintain 20% to 30% revenue growth and around 30% profit growth in the next three to five years."

In mid-July, Fenghua High-tech released the 2021 half-year performance forecast, is expected to realize the mother net profit of 470 million yuan to 520 million yuan, year-on-year growth of 84.74% to 104.40%. Zhang Jian, an analyst of electronic components industry of Tianfeng Securities, positively commented on Fenghua Hi-tech: "Fenghua Hi-tech has made a series of progress. The technological transformation and expansion project of 5.6 billion chip capacitors per month has successfully reached production in the fourth quarter of 2020. The project to produce 45 billion high-end capacitors per month has completed a fixed investment of 2.988 billion yuan. In 2020, Fenghua High-tech authorized 69 invention patents at home and abroad, more than 20 technologies and products to fill the domestic gap, more than 2000 high-end resistance and capacitance products through strategic customer certification, to achieve some products independent. We believe that Fenghua High-tech focuses on its main business, has achieved phased results in r&d investment, and its new products are competitive. It has entered the release period of performance."

The third quarter or meet capacitor price increase tide

In recent days, as the epidemic in Malaysia shows no signs of improvement, the market expects that it will be difficult to lift the overall lockdown in the country in the short term, and the production capacity of relevant manufacturers will be greatly restricted. This disrupted the already tight supply of capacitors. In the run-up to the peak demand season, production in Malaysia was disrupted, forcing downstream customers to scramble around the world to find alternative suppliers, further driving up capacitor prices. According to media reports, the world's top three aluminum electrolytic capacitor suppliers, NCC: Nippon Chemi Con, Nichicon and RubyCon, have increased the price increase from 9% to 12% originally planned to 10% to 15%, and extended the delivery time and selectively received deposits from downstream major customers. Jianghai shares in the acceptance of institutional research also said: "at present, aluminum electrolytic capacitor delivery time is longer than the same period, which solder needle product delivery time is longer."

On July 30, JEITA released statistics, due to the sudden increase in the demand for capacitors in Europe and the United States, driving the global shipment amount of Japanese electronic parts factory increased 39.4% compared with last year, the single month of May export amount reached 325 billion yen, the export amount achieved positive growth for 9 consecutive months, the monthly shipment amount broke through 300 billion yen mark for 9 consecutive months. The increase was the best in JEITA's history.

Oriental Securities electronic industry analyst Ma Tianyi analysis of the above situation, that the global capacitor industry has been brewing a new round of price increases. He said: "Affected by the epidemic, the global aluminum electrolytic capacitors have faced a serious situation of supply and demand mismatch, and the continuous extension of delivery time has seriously affected the release of demand from downstream customers. With the rising cost of raw materials, the arrival of the downstream peak season, is expected to have a wave of price increases in the third quarter of this year, may take the lead from Japanese manufacturers of aluminum electrolytic capacitor, then spread to the global film capacitor, chip capacitor and other fields. At present, China's end users accelerate to domestic aluminum electrolytic capacitor manufacturers, development space is huge. At the same time, thanks to the strong demand of electric vehicles, charging piles, wind and solar power generation, power conversion, intelligent manufacturing and other industries, the demand for all types of capacitors is strong. Domestic capacitor manufacturers will have the right to speak in part of the market, and are expected to fully enjoy the dividends brought by positive factors such as industry growth, order transfer and domestic substitution."