Jiwei.com reported that on December 29, 2023, the Shanghai Stock Exchange officially accepted the listing applications of Guangdong Deju Technology Co., Ltd. (hereinafter referred to as Deju Technology) and other companies on the Science and Technology Innovation Board, breaking the silence of the recent IPO acceptance.
According to the prospectus, Deju Technology is one of the major electronic adhesive manufacturers in China, and is one of the few national high-tech enterprises in the industry with the ability to independently develop raw materials and formulas. With its excellent R&D strength and years of R&D accumulation, the company has entered the field of high-end electronic adhesives, breaking the monopoly position of international brands in the field of high-end electronic adhesives, and is one of the few enterprises in China that can compete directly with world-class giants such as Henkel, H.B. Fuller, and Dow Chemical.
A leading enterprise in electronic adhesives, with a domestic market share of only 15%
It is understood that electronic adhesives are indispensable key materials for the development of intelligent terminals, new energy, semiconductors, communications and other industries, and are mainly used in electronic component protection, electrical connection, structural bonding and sealing, thermal management, electromagnetic shielding and other scenarios of electronic related products.
In recent years, thanks to the strong support of national policies, China's electronic information industry has continued to develop, driving the rapid development of the upstream electronic adhesive industry, and the market size has successfully exceeded 10 billion yuan in 2019, becoming one of the adhesive market segments with the fastest growth rate and huge development potential.
However, due to China's late start in the field of electronic adhesives, the current leading companies in the industry are mainly international manufacturers such as Henkel, H.B. Fuller, and Dow Chemical. According to the article released by the China Adhesives and Adhesive Tape Industry Association, the localization rate of electronic adhesives in China is less than 50%, especially in the field of high-end electronic adhesives such as semiconductor packaging and PCB board level packaging applications, which are still dominated by foreign companies, and it is expected that the localization rate of electronic adhesives in the field of semiconductor packaging will not exceed 10%.
In this context, not only Huitian New Materials, Kangda New Materials, Jitai Co., Ltd., Silicon Treasure Technology, SkyOcean New Materials and other domestic head adhesive companies have laid out the electronic adhesive business, Deju Technology, Debang Technology, Youbang Technology, Huahai Chengke, Kangmet, Xiamen Welltong, Bennuo Electronics, Changchun Yonggu and other electronic adhesive manufacturers have also made great progress.
According to the information provided by the China Adhesive and Adhesive Tape Industry Association, the performance of Deju technology products has been recognized by the market and has a high reputation, and it has become a leading enterprise in China's electronic adhesive market, with a market share of about 1 in China in 20225%, ranking among the top four domestic manufacturers in the domestic market in China.
From the perspective of performance, from 2020 to the first half of 2023, Deju Technology's operating income will be 10.5 billion yuan, 34.5 billion yuan, 35.6 billion and 17.5 billion yuan, the overall revenue scale is not large. Among them, the income of self-produced business was 09.4 billion yuan, 22.9 billion yuan, 27.4 billion and 13.4 billion yuan, and overseas business income was 497110,000 yuan, 3478530,000 yuan, 5108640,000 yuan and 3356150,000 yuan.
Since the prospectus does not disclose the calculation method of the above data, Jiwei Network estimates that the total revenue of Deju Technology and the product revenue after excluding ** revenue and overseas revenue will be estimated that the market size of electronic adhesives in China will be about 237 in 20223.3 billion yuan or 1489.3 billion yuan.
In this article, the author selects Huitian New Materials, Debang Technology, Youbang Technology, Huahai Chengke, Kangmet and Deju Technology for horizontal comparison for the reference of semiconductor investors and industry personnel.
As can be seen from the above figure, in terms of revenue, Huitian New Materials and Debang Technology are in the first and second places respectively.
It is worth noting that in 2022, the revenue of Debang Technology, Huitian New Materials, and Youbang Technology will still be in a rapid growth trend, while Huahai Chengke and Kangmet have experienced a decline in performance, and the revenue of Deju Technology will also show obvious stagnation.
The demand for smart terminals has shrunk, and the gross profit margin has fallen sharply
As the main product of Deju Technology, its original development of component encapsulation for flexible circuit board (FPC) has been successfully introduced into Apple's first-class chain system, and has become a platform product used in mobile phones, personal computers, tablets, TWS headphones, smart watches and other related application points of various equipment.
However, since 2022, the revenue of electronic adhesive products applied by Deju Technology in the field of smart terminals has declined significantly. From 2020 to the first half of 2023, the sales amount of this business was 9925690,000 yuan, 23.7 billion yuan, 200 million yuan and 7390950,000 yuan, accounting for the proportion of main business income respectively. 87% and 4263%。
In this regard, Deju Technology said that in 2022, the sales amount of the company's intelligent terminal electronic adhesive products will decrease by 15 compared with 202129%, mainly due to the weakening demand for downstream smart terminal products.
In addition, due to Deju Technology's acquisition of the distributor Shenzhen Meiketai at the end of 2020, the company has an electronic adhesive business, but with the company's vigorous development of self-produced products, the revenue and proportion of Deju Technology's electronic adhesive business have also declined significantly. From 2020 to the first half of 2023, the revenue of Deju Technology** business was 1128120,000 yuan, 11.6 billion yuan, 8160120,000 yuan and 4106340,000 yuan.
In the case of the decline of the two main businesses, electronic adhesive products used in new energy, semiconductors and communications have gradually become a new performance growth point of Deju Technology.
Among them, Deju Technology has formed in-depth industrial cooperation with well-known enterprises such as Tesla, CATL, Sungrow, BYD, and Inovance Technology, and the sales revenue of electronic adhesive products used in new energy has grown the most rapidly, with 264380,000 yuan, 6,171820,000 yuan, 10,954840,000 yuan and 6,031490,000 yuan, accounting for the proportion of main business income respectively. 04% and 3479%。
However, with the global energy transition, in the context of "carbon peak and carbon neutrality", clean energy has become a global energy development trend, and the development of new energy vehicles has become a global consensus. A-share listed manufacturers, including Huitian New Materials, Silicon Treasure Technology, Gaomeng New Materials, Delian Group, Shihua Technology, and Jitai Co., Ltd., are optimistic about the incremental space brought by new energy vehicles to the adhesive market, and have launched a layout.
Therefore, although the mid-to-high-end products are mainly mastered by a few international manufacturers such as Henkel, 3M, Fuller, Dow Chemical, etc., the core technology is mastered, the import substitution space is broad, and there is incremental space in the electronic adhesive product market applied to new energy, but there are many new manufacturers in the market, and Deju Technology does not occupy an advantage in terms of production capacity and financial strength.
From the perspective of gross profit margin, the gross profit margin of Deju Technology's main business is as follows. 84% and 6455%, occupying a dominant position among peer manufacturers.
Deju Technology said that as the company's highest proportion of revenue, the electronic adhesive products in the field of intelligent terminals have a high degree of customization, and customers usually have strict requirements for technical parameters and delivery time, so the gross profit margin is basically as high as 80%.
However, the gross profit margin of Youbang Technology, which is also engaged in electronic adhesive products in the field of intelligent terminals, is the gross profit margin. 43%, far inferior to Deju technology, but according to the "Certificate" issued by the China Adhesive and Adhesive Tape Industry Association, the company's market share in the electronic adhesive industry is about 3%, much higher than Deju Technology's 15%。
Of course, with the decline in the revenue of electronic adhesive products in the company's intelligent terminal field, the new energy business has gradually become the second largest contributor to the gross profit of Deju Technology, and the gross profit margin of this business is respectively. 97% and 4074%, which is relatively low.
In this regard, Deju Technology said that customers in the field of new energy applications usually have a high demand for electronic adhesives and a large purchase volume, so the gross profit margin is relatively low.
If the company's new energy business grows significantly in the future, while the intelligent terminal business continues to shrink, Deju Technology still has the risk of continuous decline in gross profit margin.