Electronic ceramics market scale is rising steadily: electronic ceramics refers to the ceramic materials used in the electronic industry to prepare various electronic components, because of its excellent physical and chemical properties, so that it has been widely used in aerospace, mechanical engineering, auto parts, military affairs, biological medical and other fields.
In 2010, the size of the global electronic ceramics market was us $18.13 billion, and in 2015, it grew to about US $21.26 billion. The market space for electronic ceramic materials is estimated to be about us $24.14 billion by 2019, with a compound annual growth of about 3.2% in the coming years. China's electronic ceramics market is expected to reach 64.1 billion yuan in 2019, with a compound annual growth rate of about 13%, significantly higher than the global industry growth rate.
Japan is leading, China is actively catching up: Japan is in a leading position in the electronic ceramics industry, accounting for about 50% of the global electronic ceramics market share, Japan's Kyocera has become the world's leading precision ceramics enterprises, annual sales of more than 10 billion DOLLARS, known as the "king of electronic ceramics" title.
With the strong support of "Special action to strengthen the industrial base" and "Made in China 2025" and other policies, China is actively catching up. Many domestic manufacturers have responded to the call to increase investment and production in the field of electronic ceramics, and China is expected to have more say in the field of electronic ceramics in the future.
The development of communication drives the demand for filters, and the ceramic base market is hot: with the development of global wireless communication technology, 4G is gradually popularized, and 5G will be put into commercial use in 2020. The terminal needs to support more and more frequency bands, and the demand for filters is also growing exponentially. For example, 3G requires around 3-6 SAW filters, 4G requires 20-40, and 5G requires at least 50. Ceramic base is more and more used in filter base due to its excellent thermal conductivity and high frequency characteristics. With the multiplication of the amount of filter, the supporting ceramic base will also achieve explosive growth.
High-power LED prospects, ceramic packaging into a necessary: China's LED packaging market is huge, in 2008, China's LED packaging market scale of about 18.5 billion yuan, to 2015, China's LED packaging market scale has grown to 61.5 billion yuan, and will continue to grow. In the LED market, high-power LED has a good prospect, the scale of the global high-power LED market has been rising year after year, and ceramic packaging has a dominant position in the field of high-power LED, compared with PPA/PCT packaging and EMC packaging has irreplaceable advantages. Therefore, the LED ceramic packaging industry will also become another big support for electronic ceramics demand side.
Investment strategy: We recommend investors to pay close attention to the electronic ceramics industry related targets, such as China Ceramic Materials (37.410, 0.41, 1.11%), in the ceramic powder market leading enterprises in electronic ceramic components sanhuan Group (18.750,0.10, 0.54%), and so on. We recommend the acquisition of Changxing Electronics into the field of ceramic packaging Maijie Technology (35.870, 1.01,2.90%).
Magee Technology acquires Changxing Electronics, ceramic base power filter production. Mai Jie Technology plans to invest 450 million yuan in the development and production of surface acoustic wave filter packaging process, to realize the localization of MOBILE phone SAW filter. We believe that the company, as the pioneer of domestic alternative filters, will benefit from industry development and domestic alternative. We estimate that the operating revenue of Metro Technology in 2016-2018 is 16.92/19.01/2.35 billion yuan, corresponding EPS is 0.85/0.95/1.28 yuan, corresponding PE is 41/37/27 times, maintaining the company's "recommended" rating. (Source: Jiuzheng Building Materials Network)