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Veteran PCB Manufacturer Huatong

Jun 20, 2018

Although veteran PCB manufacturer Huatong had a large amount of orders for mobile phones in mainland China in May, the demand for US-based mobile phone boards continued to slump, with monthly revenue of 3.388 billion, a decrease of 4.48%, a decrease of 3.6%, and shipments in June. The situation is still subject to the attitude of the client.

Huatong announced its revenue on the 6th, with revenue of NT$17.865 (the same below) in the first half of May, still down 1.76% from the same period of last year.

For Apple's new generation of mobile phone boards, the industry pointed out that Huatong has not received a production order until today, and it is estimated that its fastest time of mass production is also in late June. Therefore, Huatong’s revenue in May was analyzed mainly by China. Mainland China millet, Huawei, OPPO, vivo and other mobile phone brand assembly plant support.

In the first quarter of this year, Huatong was cooled by the overall mobile phone market. Under the severe adjustment of major US customers' inventory, the single-quarter revenue was 10.93 billion yuan, gross profit margin was 14.3%, which was 13.1% higher than the same period of last year, after-tax net profit 4.82 Billion, 0.4 per share, increasing 20.9% annually


The industry estimates that Huatong’s capacity expansion this year is mainly based on the Chongqing plant HDI and Huizhou precision soft and hard composite panels, of which the Chongqing plant has now completed the expansion of high-end HDI production capacity of about 8-100,000 square feet, which is expected to meet the American customer tradition In addition to the demand in the peak season, it also increases the supply flexibility of future Chinese orders.

As for the soft and hard composite panels, the industry estimates that Huatong will increase its production capacity by approximately 20-30% this year. The focus is on upgrading the specifications of the US-based battery management module, wireless headsets, and Chinese customers' lens modules. In the first half of the year, due to the sluggish sales of US-based customers' mobile phones, the utilization rate of production capacity was low. It is expected that the effect of order warming will appear in June, but it still depends on the status of the client's delivery.

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