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Focusing on precision metal parts manufacturing

            Email: sunny@foxron.cn

Precision electronic components Small parts, big functions

by:Foxron     2021-09-21
Precision functional parts are high-value products that are easily overlooked. With the continuous innovation of consumer electronics functions, as well as design trends such as lighter and thinner and more beautiful, the demand for precision functional parts continues to increase.

   Small parts, big functions

   1) Precision functional parts are mainly die-cut and small metal parts that play the role of glue, insulation, heat dissipation, shielding, support, etc., small in size, hidden in location, and easy to be ignored, but they are consumer electronic components An important part. 2) 'Big functions' are mainly embodied in two points, one is function realization, and the other is structural design. With the improvement of consumer electronic product functions and integration, the value of precision functional parts will continue to increase. 3) Apple and other terminal brands are paying more attention. This is due to the increasing difficulty of functional and structural design. iPhoneX is a more complex mobile phone in history, requiring close cooperation with precision functional parts manufacturers to provide solutions and supporting facilities, which also brings precision The value of functional parts is highlighted.

   End-to-end innovation continues, and the volume and price of precision functional parts are rising

   1) The demand for sophisticated functional components driven by innovative upgrades of smart phones has increased significantly. The volume and price of high-precision functional components driven by OLED, wireless charging, and waterproof and dust-proof upgrades have risen. We estimate that the demand for iPhoneX functional components will increase by about 70%. 2) Under the trend of lighter, thinner, and more beautiful design, the trend of program upgrades and the componentization of multiple material composites will further promote the value of functional parts. 3) New types of hardware such as automotive electronics, smart wearables, and smart homes are expected to usher in an explosion, and manufacturers of precision functional parts will continue to benefit.

   program design + rapid cooperation, the strong rise of mainland manufacturers

   1) The precision functional parts industry has significant customization characteristics, and the program design and rapid coordination capabilities have become the core competitiveness of precision functional parts manufacturers. 2) The strong rise of mainland precision functional parts manufacturers. On the one hand, they have penetrated into the function and structure design of Apple and other brands, and have accumulated leading solution design capabilities. On the other hand, they have increased customer stickiness and gradually increased their share by relying on rapid coordination capabilities and cost advantages.

   Valuation and Recommendations

   We are optimistic about the leading domestic precision functional parts, especially the Apple system Anjie Technology, Jiangfen Magnetic Materials (Lingyi Technology), Fenda Technology, continue to benefit from Apple’s innovation, and rely on supporting Apple’s accumulated program design and Cooperate with capabilities, copy to other brands and fields, and open up space for continuous growth. It is the first time that Anjie Technology Co., Ltd. is covered to give a recommended rating, and the target price is 36.20 yuan, which corresponds to 27 times P/E in 2018. It is the first time that Fenda Technology Co., Ltd. is covered to give a recommended rating with a target price of 15.50 yuan, which corresponds to a valuation of 25 times in 2018.
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