In the evening, Sino-British Technology (300936.SZ) disclosed its first annual report since its listing, and its performance achieved steady growth. Data show that the company’s operating income in 2020 is 210 million, a year-on-year increase of 19.24%; the net profit attributable to owners of the parent company is 57,777,800 yuan, a year-on-year increase of 21.12%; basic earnings per share are 1.0244 yuan, a year-on-year increase of 21.12%.
It is reported that the main business of Sino-British Technology is the research and development, production, and sales of high-frequency communication materials and their products. It mainly supplies downstream industries with high-frequency communication materials that can provide a stable transmission environment for signal carriers under high-frequency conditions. The “new infrastructure” in the domestic market represented by 5G, industrial Internet, servers, cloud computing data centers, etc. is further stimulating the upgrade of new materials for high-frequency communication. As a domestic enterprise that began research and development and production of high-frequency communication materials earlier, the company broke the foreign monopoly in the field of high-frequency copper-clad laminates and entered the well-known domestic and foreign communication equipment manufacturers CommScope, Jingxin Communication, Rosenberg, and Tongyu Product procurement catalogs of companies such as communications.
5G Base Station Core Raw Material Supplier
98.5% of production and sales of high-frequency copper-clad laminates
Public information shows that the application range of high-frequency copper-clad laminates is quite extensive, and it is currently one of the core raw materials for the construction of 5G and 4G base stations in the mobile communication field. As far as Sino-British Technology is concerned, the company’s products are mainly used in the core components of base station antennas, which are key raw materials required for the production of base station radiating units, feeder networks, phase shifters, and other equipment; in terms of high-frequency copper-clad laminates, the company’s current CA Type, Type D, and Type 8000 high-frequency copper-clad laminates have been used in batches for 5G base station construction. The company’s ZYF-6000 type products are mainly for higher frequency communications. The company’s new product high-frequency transmitter housing helps improve the overall performance of 5G communication antennas.
At the moment, the construction of 5G base stations is accelerating. According to the “Communication Industry Statistics Bulletin 2020” issued by the Ministry of Industry and Information Technology, in 2020, the total number of mobile communication base stations nationwide will reach 9.31 million, a net increase of 900,000 for the year. Among them, there are more than 600,000 new 5G base stations, and more than 718,000 5G base stations have been opened. The increase in the number of 5G base stations has led to an increase in the demand for low-loss and low-loss and high-frequency copper clad laminates. The market demand for ordinary copper-clad laminates has also benefited from the increase in the number of base stations.
Under the accelerated development of the industry, Sino-British Technology has successively achieved major breakthroughs in materials such as high-frequency and high-speed technologies. The high-frequency copper-clad laminates and high-frequency polymer matrix composite materials it produces can be used in environments where the communication frequency is above 1GHz. Provide a stable transmission environment for the signal carrier. The prospectus shows that since 2020, the company’s 5G products have been successfully applied in batches to the construction of 5G base stations in South Korea and China.
In 2021, in the face of unfavorable factors such as the global outbreak of the new crown epidemic, Sino-US trade frictions, and rising raw materials, the company’s management accurately identified, responded scientifically, and overcame the difficulties together. In terms of production capacity, Sino-British Technology’s new annual production capacity of 300,000 high-frequency copper-clad laminates and PTFE high-frequency copper-clad laminates have been gradually released, driving a year-on-year increase of 56.42% year-on-year to 538,500 sheets in 2020, and the production and sales volume is as high as 98.5%. The company accelerated its expansion into more developed regions. Revenues in the two regions increased by 84.76% and 47.8% year-on-year respectively, reaching 112 million yuan and 91 million.
Recognized By Many Well-Known Customers
Considerable import substitution space
Thanks to the high quality of the products, the products of Sino-British Technology have been certified by major global base station antenna manufacturers such as Huawei, Jingxin Communication, Tongyu Communication, etc., and have cooperated with many well-known PCB Enterprises have maintained solid cooperation. According to the company’s prospectus, among the global enterprises engaged in the production of high-frequency copper-clad laminates, Sino-British Technology has a market share of approximately 6.4%, ranking third in the world, second only to international giants Rogers and Taikangli. With the help of economies of scale and high-quality customers, the company’s gross profit margin has remained above 45% and the net profit margin has remained above 27% in the past three years.
my country is a large global manufacturing country. It has a large market share in upstream and downstream industries such as base station equipment, PCB, and copper-clad laminates in the mobile communication industry chain, but it still needs to rely on imports for some key materials. Among them, in the field of basic material copper-clad laminates, output accounted for 72% of the global output. In 2018, the net export of copper-clad laminates was 14,300 tons, but the trade deficit reached 526 million US dollars. The main reason is that domestic copper-clad laminate products are mainly low value-added. Products such as FR-4 copper-clad laminates, and high-tech high-frequency and high-speed copper-clad laminates, packaging substrates, etc., mainly rely on imports.
In view of the current low overall added value of domestic copper-clad laminates, it is the golden age of high-end breakthroughs, and there is a large room for import substitution. However, Zhongying Technology is a well-known domestic high-frequency communication material manufacturer, and its imagination is considerable. It is understood that the current high-frequency communication materials used by domestic high-frequency PCB processing manufacturers are mainly from foreign manufacturers such as Rogers. For products of the same specifications, products produced by Sino-British Technology have been able to replace them, and there is a certain price advantage relative to imported products. , Is expected to continue to increase volume. The company said that it will also strive to have a more prominent performance in the domestic market, such as mobile communication base station networks, Beidou navigation terminal systems, and military radars.
Looking ahead, according to Primark statistics, the overall scale of the high-speed copper-clad
The laminate market reached 7.82 billion in 2018. With the acceleration of downstream 5G construction and the full spread of demand for communication products, the overall scale is expected to reach 15 billion in 2023. The compound annual growth rate will reach 14%. Coupled with the import substitution of foreign products by domestic manufacturers, Sino-British Technology may accelerate its progress toward the goal of “becoming a leading enterprise in the domestic high-frequency communication materials industry”.