The production capacity advantage of Lianrui new material will change the industry pattern that people have known for a long time.
3145 words, reading about 6 minutes
Qiao Haoran
Editor always on
The middle and low-end markets are "bustling" and the high-end markets are "as few as the stars in the morning". This seems to be the current situation of many material subdivision fields in China, among which silicon micro powder is one.
Silica powder is a common filler in industrial production, which is used to fill other materials to improve processing performance, mechanical properties of products or reduce the cost of solid.
As an enterprise engaged in research and development, production and sales of silica fume in China, Lianrui new material (688300) has been deeply engaged in the field of silica fume since its establishment. After more than ten years of development, it has grown into the leading enterprise of silicon micro powder in China, and has successfully broken the Japanese monopoly on spherical silicon micro powder.
Although the technology has reached the leading level of similar products, the current localization and substitution level of Lianrui new material seems not high, and the high-end market is still occupied by Japanese companies. After landing on the scientific and technological innovation board, how will Lianrui new material, which has been enhanced by the capital market, arrange its troops and deploy its forces, and take the leading position? Can it take a "city" from overseas enterprises?
Domestic silicon powder leader
Silica micro powder (quartz powder) is a kind of silica powder material, which has high heat resistance, high insulation, low linear expansion coefficient and good thermal conductivity. This kind of performance makes it widely used as a functional filler in copper clad laminate and epoxy plastic sealing material. Its terminal applications are consumer electronics, automobile industry, aerospace, wind power generation, national defense and military industry, and the chip is one of the most common terminal products.
In recent years, the performance of Lianrui new materials is remarkable: from 2016 to 2018, Lianrui new materials achieved performance growth of nearly 80%, revenue scale expanded from 152 million yuan to 277 million yuan, and net profit increased from 32.7 million yuan to 58.36 million yuan.
At present, the products of Lianrui new material mainly include angular silicon micro powder and spherical silicon micro powder. The angular silicon micro powder can be further subdivided into crystalline silicon micro powder and fused silicon micro powder according to different raw materials. The good market performance of these products is the driving force for the steady growth of Lianrui NEW material performance.
It is worth mentioning that Lianrui new material spherical silicon micro powder business has developed rapidly in recent years, showing great potential. From 2016 to 2018, its revenue increased from 2008 million to 70.85 million, more than three times. The rapid development of the business is also attributed to the continuous R & D investment and technology accumulation of Lianrui new material, which has mastered the core technology of spherical silicon powder production, and the product performance has caught up with the level of the first echelon in the world, thus breaking the monopoly of overseas enterprises.
The revenue of Lianrui new material mainly comes from copper clad laminate and epoxy plastic sealing material. In 2018, the revenue from these two fields is RMB 114 million and RMB 89 million respectively. It is estimated that in 2018, the market share of Lianrui new material in domestic copper clad laminate field and epoxy plastic sealing material field is 10.95% and 26.47% respectively
At present, Lianrui New Material Co., Ltd. has also established stable cooperative relations with the top ten copper clad enterprises in the world, such as Jiantao group, Shengyi technology, South Asia Group, Lianmao group, Jin'an Guoji, taifan technology, Korea Doosan group, Sumitomo Electric, Hitachi chemical, Panasonic electric, KCC group, Huawei electronics, etc.
Although it has successfully broken the monopoly of overseas enterprises, in 2018, the global market share of Lianrui new material spherical silicon micro powder reached 4.9%, but according to the data released by China powder technology network, three enterprises, electrochemical Co., Ltd., Japan Longsen Co., Ltd. and Japan Nippon Steel Co., Ltd. together accounted for 70% of the global market share of spherical silicon micro powder, Lianrui new material and the world's leading enterprises still have a big difference Distance.
However, the low market share also means that there is a large space for localization. When the brand effect of Lianrui new material continues to open and the business scale further expands, relying on the "fast food" industry leader is expected to bring a huge increase to its business scale.
Binding the downstream electronic information industry
The downstream market of Lianrui new material also has a good space for growth, and many downstream application directions also give Lianrui new material more business development directions. According to the prediction in the new material stock book of zhaolianrui, in 2018, the market space of domestic silicon micro powder will total 6.875 billion yuan, and by 2025, the market space of silicon micro powder will increase to 20.8 billion yuan.
Taking the current mainstream application fields of Lianrui new materials, such as copper clad laminate and epoxy plastic sealing material industry, as an example, its market scale is expected to expand more than three times from 2018 to 2025.
Copper clad board is the basic material for the production of printed circuit board (PCB). Its preparation method is to dip glass fiber cloth or other reinforced materials into resin matrix, and one or both sides are covered with copper foil and hot pressed. Silicon powder is the filler of copper clad laminate, and its filling weight proportion in the copper clad laminate can reach 15%.
Tuyuan / Northeast Securities Research Report
The physical characteristics of PCB, such as linear expansion coefficient and thermal conductivity, can be improved by adding silicon powder to the CCL for electronic circuits, which can effectively improve the reliability and heat dissipation of electronic products; meanwhile, the good dielectric properties of silicon powder can also improve the signal transmission speed and quality of electronic products.
According to the data of CCL materials branch of China Electronic Materials Industry Association, the total output of CCL industry in 2018 is 654 million square meters, and it is estimated that by 2025, the output of CCL industry in China will reach 1.002 billion square meters. According to the weight of 2.5kg/m2 of CCL, the output of CCL industry in China will be about 2.559 million tons by 2025. Based on the estimation of the filling proportion of silica fume in CCL of 15%, the demand of silica fume for CCL in China will be 375900 tons by 2025.
As the "mother of electronic products", PCB has been applied in almost every terminal field of electronic industry. In recent years, China's PCB industry has also shown a steady growth trend. According to the data of international electronic industry professional consulting company prism, China's PCB market scale reached 32.6 billion US dollars in 2018, accounting for 52.4% of the global PCB total output value. It is estimated that China's PCB output value will reach 40.556 billion US dollars by 2023. With the increase of PCB, the demand of CCL and silicon powder will be driven together, and Lianrui new material, which is located at the upstream of the industrial chain, will also benefit.
Epoxy resin is the key material used to package chips in electronic products. The addition of silica powder can not only reduce the linear expansion coefficient of epoxy resin, improve its heat dissipation and mechanical strength, but also reduce the cracking of epoxy resin, prevent the external harmful gases, moisture and dust from entering the electronic components or integrated circuits, slow down the vibration, prevent the chip from being damaged by external forces, and stabilize the performance of components. Its filling proportion in epoxy resin is also 60% - 90%.
Tuyuan / CITIC Securities Research Report
As the key material of packaging chip, the change of downstream IC packaging test industry will also affect the development of epoxy plastic packaging industry. According to the research on the 13th five year plan for the development of China's Semiconductor Industry issued by China Semiconductor Industry Association, by 2020, the sales revenue of China's integrated circuit industry will reach 930 billion yuan, with an annual compound growth rate of 20%, among which the sales revenue of China's integrated circuit packaging and testing industry will reach 290 billion yuan, an increase of 140 billion yuan, with an annual compound growth rate of 15%.
If the growth rate of epoxy resin is consistent with that of IC packaging test industry, it is predicted that the output value of domestic epoxy resin resin will reach 263300 tons in 2025, which is more than 2.5 times higher than the capacity of 100000 tons in 2018. The market scale of silica micro powder, which is filled up to 70% - 90% in the epoxy plastic sealing material, will increase with the increase of the market scale.
Surging demand and capacity expansion
Although the downstream market has a huge rising space, with the continuous breakthrough of electronic information technology, its products are developing towards a higher and more sophisticated direction, the requirements for the performance and quality of upstream products are also higher and higher, and the requirements for silicon micro powder are also developing towards ultra refinement and spheroidization.
Spherical silica powder has also become a necessary production material for high-end copper clad laminates such as aerospace, radar, supercomputer, 5g communication, etc.; it is also a better choice for large-scale, super large-scale and super large-scale integrated circuit packaging epoxy plastic materials such as smart phones, wearable devices, digital cameras, switches, supercomputers, etc.
Therefore, the high-end market has become the main driving force for the growth of silicon powder industry.
In 2020, 5g commercial application is imminent. 5g communication technology requires higher transmission speed, transmission loss and heat dissipation of CCL. High frequency and high-speed CCL becomes the key material for 5g commercial application. It is estimated that by 2025, the market demand of domestic high-frequency copper clad laminates will reach 61.1 billion yuan.
According to the development plan of China's semiconductor integrated circuits and devices, in the next 4-5 years, China's demand for spherical silicon powder will reach more than 100000 tons.
If you want to get a piece of the cake that is increasing in the downstream market, sufficient production capacity is a necessary condition.
At present, Lianrui new material has a capacity of more than 7000 tons / year, ranking first in domestic enterprises in terms of spherical silicon powder capacity, and more than 26000 tons / year in terms of angular silicon powder capacity. However, according to the prospectus of Lianrui new materials, in the first half of 2019, the capacity utilization rate of its spherical powder has reached 106.43%, and it seems that the expansion of capacity is imminent.
Of the 284 million funds raised in this listing, 210 million yuan will be applied to the production capacity construction, of which the planned investment of 108 million for the construction of silicon powder production base is to expand the production capacity of spherical silicon powder.
When all projects are completed, Lianrui new material will add 7200 tons of spherical silica powder capacity and 10000 tons of high fluidity and high filling fused silica powder capacity.
Lianrui new material seizes the new market of silicon powder, concentrates on domestic substitution, and holds the top position in China. Next, the strong downstream demand of China's market will surge with the mass launch of the next generation of consumer electronics products and the in-depth development of 5g commerce. At that time, the production capacity advantage of Lianrui new material will change the industry pattern that people already know.
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