Benefit from tablet computers and smart phones in the future shipment growth, printed circuit board (PCB) requirements, the overall industry also gradually get rid of the stereotype of low margin, and gradually get attention of foreign investment. After Goldman sachs, citigroup global securities is also the first PCB groups should be brought into the track research scope, the preferred to buy JingShuo, target price 108 yuan; But shout south electricity, target price of 70 yuan.
Tablet computer and intelligent mobile phone industry to take off, become a flip chip load board (FlipChipSubstrate) needs two big growth of the spindle, PCB industry also got rid of the past the traditional impression of low technology, low margin, and effective control of capital spending, has become the focus of foreign investment. In early November after Goldman sachs securities PCB groups should be brought into the scope of research for the first time, citigroup global securities also to issue the relevant report for the first time today.
Citigroup global securities believes that smart phone and tablet computer drives the PCB demand, forecasts, the year after next flip chip packaging (FC - CSP) grew 40%, 24% respectively. And smart phones and tablet computers use high-density connection board (HDI), the year after shipments also is expected to grow by 20%, 17% respectively. And because in the past few years capital expenditure control, somewhat into the technical threshold, FC - CSP, HDI products, gross margin is higher than traditional PCB.
Citigroup global securities given JingShuo, jian ding (3044) to buy rating, target price respectively is 108 yuan, 142 yuan, including preferred JingShuo. But recent including Morgan Stanley, jpmorgan chase, Lyon, Goldman sachs and other four foreign, are promising hin hing (3037), the bank only give neutral rating, target price is 56 yuan. Overall, citi think JingShuo, jian ding and xin xing is still attractive, but south electricity because of the product portfolio is relatively poor, coupled with the CPU in the back of the long process of BGA yield than expected, so to sell rating, target price of 70 yuan.
