First, industrial policy support
Second, the traction of industry recovery
The overall dynamic PE of the electronic components industry is close to 55 times, almost the highest level in history.
Since March, the recovery of the electronic components industry has far exceeded market expectations, and the valuation of the industry has increased significantly. The current dynamic PE of the industry as a whole is close to 55 times, almost the highest level in history. We believe that to support such a high valuation, the cyclical sub-sectors of the electronic components industry must have substantial improvements in profitability, and their growth sub-sectors must have relatively clear high growth.
As for electronic components becoming more and more active, according to analysis, there are two factors:
The first is the factor of industrial policy support. As we all know, when the industrial revitalization plan was hyped in the early stage, electronic components attracted market attention because they represented the country's technological strength and other factors. They were once repeatedly active due to the theme of the industrial revitalization plan. The order volume of semiconductor manufacturers has increased significantly. Take TSMC, the leader in semiconductor foundry manufacturing, as an example. After experiencing four consecutive months of month-on-month declines since November last year, its revenue has rebounded rapidly month-on-month since March.
Driven by the recovery of semiconductor manufacturers' revenue, the BB value of semiconductor equipment has also begun to rebound. The gratifying achievement is mainly due to the stimulation of industrial support policies, that is, the Ministry of Finance recently announced the extension of the implementation period of the "Notice on Taxation Policies for Imported Materials by Thin-Film Transistor and Liquid Crystal Display Device Manufacturers" (Caishui [2006] No. 4) In 2006, the scope of preferential import tax policies stipulated in the notice was also extended to plasma display panel (PDP) and organic light-emitting diode display panel (OLED) manufacturing enterprises. The operating procedures shall be implemented in accordance with Caishui [2006] No. 4 document. Such information means that the electronic information sector has ushered in new industry support policies, thus giving the semiconductor a new subject matter catalyst.
The second is the traction of industry recovery. It is undeniable that the electronic components industry is still difficult to say is out of the trough. However, as relatively clear consumer hot spots have emerged in the market, for example, the sales of netbooks have been relatively hot in the near future. If factors such as the advancement of the 3G era are also taken into account, netbooks, etc. Products benefiting from the 3G industry will become more popular, thus becoming a new driving force for electronic components. At the same time, home appliances going to rural areas and automobile sales are also expected to boost electronics consumption, which gives the electronic components industry a strong potential for recovery. If we take into account factors such as policy support and market cultivation of new products, electronic components are indeed expected to get out of the industry trough and usher in a recovery cycle. The recent gradual rebound in panel product prices is the best illustration.
This also means that electronic component products are currently facing certain development opportunities, not only because they have expectations for industry recovery, but also because they have theme catalysts supported by industrial policies, and even more because various funds are currently trying their best to find The new leader.
In the future development, 1: The panel industry is a typical high-tech, high-capital industry with extremely elastic performance. Once the industry recovers, the performance is expected to skyrocket quickly, and it is a product that directly benefits from recent industrial policy support. . Two: Electronic components with core technical advantages. Their advantages come from the excellent quality brought about by long-term industry competition.
