Shennan Circuit: At present, the overall capacity utilization rate has reached 90%

Shennan Circuit recently disclosed the summary of investor research activities in the past week, which mainly focused on the company's order volume, production capacity, and the impact of the epidemic. Looking back on the whole year of last year, Shennan Circuit realized 10.524 billion operating income, an increase of 38.44% year-on-year; realized a net profit of 1.233 billion, an increase of 76.8% year-on-year. In the past two years, innovation in consumer electronics, automotive electronics and other fields has increased, making the industry's demand for high-end PCB products continue to grow. Shennan Circuit, as a domestic leader in this field, has also benefited from this. At the same time, it is also more actively strengthening its layout in many aspects such as business and production capacity. With the gradual improvement of the epidemic situation in various regions of China, the output of Shennan Circuit's production bases has also continued to increase. The company said that up to now, except for the new factories (Wuxi substrate factory, Nantong Datacom Phase II factory), the company's overall capacity utilization rate has reached 90%, which is already at a high level. However, during the Spring Festival, due to the impact of the epidemic on output, the current production capacity of 5G-related products was relatively tight. The company has made relevant deployment arrangements and strives to make up for the output affected by this part at a later time. In terms of company performance, Shennan Circuits said that compared with the same period of last year, the proportion of communications, servers, and medical orders in the first quarter of this year increased. On the whole, orders in the first quarter increased year-on-year. Not only that, the company also mentioned that compared with the same period of last year, the proportion of 5G orders in communications orders in the first quarter of this year increased significantly. The server is one of the main hardware of the data center. With the significant increase in data traffic brought by 5G communication in the future, the demand for related hardware PCB is also expected to increase significantly. The company is currently vigorously promoting the development of related customers and the landing of orders. Revenue share increased year-on-year. It is worth noting that, in response to the impact of the current epidemic, Shennan Circuit pointed out: "From the current situation, the company's core market communications equipment market and the data center market that it has been focusing on in the past two years have shown strong demand and the company's production capacity It is in a relatively tense state. But the overseas epidemic situation is still developing dynamically. Whether the global economic development trend will have a more profound impact on the market area in which the company is located in the next step needs to be observed. The company will continue to actively respond to market changes. Good internal risk control. " Shennan Circuits believes that in 2019, the global macro-environment situation will be affected by economic and trade frictions and other factors, the uncertainty of economic development will increase, coupled with the increasingly stringent environmental protection supervision, and the pressure of competition in the PCB industry will continue to increase. Since the beginning of 2020, emergencies such as the New Crown epidemic have added new challenges to the development of PCB companies, or have caused greater pressure on factories with lower risk capabilities. However, the booming industries represented by 5G communication technology and cloud computing have also brought structural growth opportunities to the industry.