The Zhitong Finance App learned that PCB concept stocks had the highest decline. As of press release, Shenghong Technology (02476) fell 5.72% to HK$240.6; China Building Materials (03323) fell 2.44% to HK$4.005; Dazu CNC (03200) fell 2.23% to HK$105; and Jiantao Laminate (01888) fell 1.4% to HK$35.22.
According to the news, the prosperity of the PCB industry is still rising strongly, and the industrial chain has significantly increased its efforts to expand production, but it has also raised concerns about overcapacity. Shanghai Electric Power Co., Ltd. suggests that peers will expand production drastically to grab share. Subsequent production capacity will lower the overall technical threshold of the industry, industry competition will converge internal volume, and corporate profits will be pressured; at the same time, high-end hardware will upgrade PCB technology requirements, and the industry will form a pattern where there are many entrants and few leading companies that can stabilize profits, and industry differentiation will intensify.
Guosheng Securities released a research report saying that it will take time for the price of electronic cloth to shrink until PCBs shrink, and it is likely that it will only affect some low-end PCBs. The bank pointed out that the low profit margin of ordinary PCBs determines that they are sensitive to price increases for electronic fabrics, while high-end PCBs are buffered by order, certification, and bargaining power. In the short term, it is necessary to track whether the price spread of ordinary FR-4 stops expanding, and in the medium to long term, it is necessary to track whether the operating rate and inventory index of medium- and low-end PCBs weaken. Both appear at the same time, which is a confirmation sign that the price increase logic of ordinary electronic cloth is actually weakening.