On March 18th, Jiantao Group (00148.HK) released its annual performance announcement for 2023, reporting a 20% year-on-year decrease in operating revenue to HKD 39.712 billion. Jiantao Group stated that the decline in market sales prices of copper-clad laminates (CCL) and chemical products, as well as a reduction in residential property deliveries, contributed to the nearly 20% decrease in the group's turnover compared to the same period last year.

Regarding the CCL division, Jiantao Group mentioned that the downward market trend in the past two years has led to inventory consumption by both PCB manufacturers and end customers, reaching a bottom. Export orders are gradually recovering, driven by the rapid growth in demand for new energy vehicles and related products such as charging stations, the widespread adoption of clean energy sources like photovoltaics, and the extensive use of artificial intelligence and big data technologies. It is expected that the CCL market will gradually stabilize and rebound.

Jiantao Group also revealed that the company has completed the development of low dielectric constant/low thermal expansion coefficient products for AI computing power. These products have a high proportion of domestically produced materials and are currently undergoing comprehensive testing with customers. In line with the group's PCB and industry needs, they are actively being introduced to the market. Additionally, during the market downturn, the prices of raw materials continuously declined, putting immense pressure on the company's inventory prices. Currently, except for copper, the inventory prices of all CCL raw materials have reached extremely low levels, which will help improve the gross profit margin in 2024. The group plans to increase CCL production capacity in Thailand by 400,000 sheets per month in 2024.

Regarding the company's PCB division, Jiantao Group stated that it has multiple advantages in various fields such as automotive, communications, and consumer electronics, and currently has ideal order volumes. The demand for PCBs used in new energy vehicles and photovoltaics is particularly strong. Additionally, the company is also developing new technologies for future applications in the 6G wireless communication, high-speed server, 4D imaging millimeter-wave automotive radar, and high-voltage fast charging for new energy vehicles sectors. The company will continue to strengthen the core competitiveness of its PCB brands, such as Yilian, Kehui, and Yangxuan, and aims to increase the monthly production capacity of multilayer PCBs by 200,000 square feet (approximately 18,600 square meters) in Thailand in 2024, establishing a more extensive Jiantao PCB network within the industry.

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Source: Gleam

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