The upstream raw materials for PCB have continued to rise from the end of 2020 to the present, and overbooking, capacity grabbing, and raw material grabbing have become the norm. The terminal demand remains high, and the shortage of upstream raw material supply is also difficult to solve in the short term. With the traditional peak season of electronic products approaching, if demand continues to remain unchanged, it is not ruled out that there is a possibility of further growth in the third quarter.

In response, Sun Can, Chief Analyst of Chuancai Securities Technology Industry, interviewed by Securities Daily reporters, stated that, The vast majority of domestic PCB manufacturers have expanded their mid to low end production capacity in recent years. We believe that the ability of most mid to low end manufacturers to pass on price increases downstream is relatively weak, so the overall impact of upstream price increases on the PCB industry is negative. Manufacturers with technical barriers have seen rapid performance growth in the past two years, and demand for downstream mid to high end products in fields such as digital communication, 5G, military security, and consumer electronics is expected to maintain a certain growth. PCB boards After preliminary adjustments, the current valuation of the block is relatively reasonable, and there is an opportunity for relevant sectors to make up for the increase

Data shows that since June, the PCB concept sector has performed exceptionally well, with an overall increase of 2.65%, significantly outperforming the Shanghai Composite Index (with a cumulative decrease of 0.98% during the period), ranking among the top gainers. During this period, 38 concept stocks have achieved an increase in stock prices, accounting for over 80%. Among them, five concept stocks, including Shennan Circuit, ST Danbang, Xinqi Microelectronics, Eaton Electronics, and Jin An Guoji, have accumulated the highest gains during the period, all exceeding 10%, demonstrating their strength.

PCB benefits from the continuous development and growth of the electronics sector driven by industry trends and policy support. Driven by multiple factors such as accelerated construction of 5G base stations, data center construction, rapid improvement of automotive electrification and intelligence, and rapid growth of electronic consumption, it is optimistic about the performance improvement opportunities brought by the continuous expansion of the PCB sector's demand. "Private placement network researcher Sun Enxiang told Securities Daily.

Good performance may be an important support for the recent market funding layout. According to statistics from Securities Daily, out of 45 listed companies in the PCB industry, a total of 36 companies achieved year-on-year growth in net profit in the first quarter of this year, accounting for 80%. Among them, 20 companies achieved a year-on-year doubling of net profit during the reporting period.

Analysts generally believe that since the gradual recovery of the global epidemic, the suppressed consumer demand last year has rebounded rapidly, and the PCB industry has entered a period of rapid growth, which is expected to drive the industry's prosperity to continue to rise. According to Prismark's statistics, the total output value of the global PCB industry in 2020 is estimated to reach 65.219 billion US dollars, a year-on-year increase of 6.4%. Prismark predicts that the total revenue of the top 40 PCB manufacturers will increase by 29% year-on-year in the first quarter of 2021, reaching a level of $17.8 billion.