Project background:

Printed circuit board (PCB) is the key electronic interconnect of electronic products, known as the "mother of electronic products". The development of PCB industry and downstream industries are interrelated and mutually reinforcing. Printed circuit boards are indispensable electronic components in modern electronic information products. The development level of this industry can reflect the development speed and technology level of a country or region's electronic industry to a certain extent. In 2022, the global PCB market size was 87 billion billion US dollars, up 12% year-on-year. The output value of each product segment, including multilayer board, HDI, packaging substrate, etc., achieved a rapid growth rate. China is the world's largest PCB producer and consumer, 2022 China's PCB market size of $39 billion.

Customer pain points:

An investment company (hereinafter referred to as the customer) has a high investment interest in the printed circuit board (PCB) industry, hoping to find high-quality companies with growth potential and competitive advantages to invest. However, the customer's understanding of the PCB industry is not deep enough, and there is a lack of comprehensive research and evaluation of the industry development trend, market competition pattern, the financial situation and operating ability of major enterprises. In addition, the client is not clear on how to conduct effective due diligence to ensure the reasonableness and safety of investment decisions.

Project purpose:

In July 2023, Shangpu Consulting Company (hereinafter referred to as Shangpu) was entrusted by the client to complete the research and due diligence project on investment opportunities in the printed circuit board (PCB) industry. The main objectives of the project are:

To provide customers with PCB industry macro environment research, market size and structure research, market demand and supply research, market competition pattern research, industry development trends and opportunities research, etc., to help customers fully understand the current situation and prospects of the PCB industry.

Select potential investment target companies that meet their investment standards and preferences for clients, and conduct in-depth financial research, business research, strategic research, risk research, etc. to help clients assess the value and potential of their investments.

Develop and implement a set of complete due diligence processes and methods for customers, including data collection, information verification, on-site inspection, transaction structure design, etc., to help customers reduce investment risks and ensure smooth investment.

Research object:

The research objects of this project mainly include the following two categories:

Relevant institutions and experts in the PCB industry, including China Electronic Materials Industry Association Copper Clad Laminate Materials Branch (CCLA), China Electronic Components Industry Association Printed Circuit Branch (CPCA), China Electronic Information Industry Development Research Institute (CCID), Prismark Partners LLC and other institutions, as well as experts and scholars engaged in PCB industry research and consultation.

Potential investment target enterprises include listed companies with high market share and influence in PCB industry, such as Pengding Holdings, Dongshan Precision, Shennan Circuit, Shanghai Electric Power Co., Ltd., Jingwang Electronics, etc., as well as non-listed companies with high technical level and innovation ability in PCB industry, such as Shengyi Technology, Ultrasonic Electronics, Xingsen Technology, Chongda Technology, etc.

Project Content:

The main contents of this project include the following aspects:

PCB industry investment opportunity research, including the PCB industry's macro environment research, market size and structure research, market demand and supply research, market competition pattern research, industry development trends and opportunities research, as well as the PCB industry's SWOT research, summary of the PCB industry's strengths, weaknesses, opportunities and threats, to provide customers with a comprehensive overview of the PCB industry and investment recommendations.

Potential investment target enterprises screening, according to the customer's investment standards and preferences, from the PCB industry listed companies and non-listed companies to select the potential investment target enterprises that meet the conditions, and their preliminary background introduction and basic information, to provide customers with a list of investment target enterprises to choose from.

Evaluation of potential investment target enterprises, in-depth financial research, business research, strategic research, risk research and other contents of the selected potential investment target enterprises, using financial ratio research, financial forecasting model, valuation model, strategic map and other tools to evaluate their financial situation, profitability, growth potential, competitive advantage, risk factors and other aspects, to provide customers with a detailed investment target enterprise evaluation report.

Potential investment target enterprises make due diligence, formulate and implement a set of complete due diligence processes and methods, including data collection, information verification, on-site inspection, transaction structure design, etc., through communication and communication with the management, employees, customers, suppliers and other related parties of potential investment target enterprises, through consulting the financial statements, contract documents, legal documents and other related materials of potential investment target enterprises, through on-site visits to the production bases, R & D centers, sales outlets and other important places of potential investment target enterprises, through the design of reasonable transaction structure and terms, to ensure the comprehensiveness and effectiveness of due diligence work, to provide customers with a complete due diligence report.

Project Value:

This project provides value to the customer in the following areas:

To help customers fully understand the current situation and prospects of the PCB industry, to provide customers with a clear industry investment map and reference.

Help customers to select high-quality enterprises that meet their investment standards and preferences, and conduct in-depth evaluation and research on them, providing customers with a reliable investment decision support.

Help customers reduce investment risk, ensure the smooth progress of investment, and provide customers with a professional due diligence service.

Helps clients achieve their investment goals and expected returns, providing them with an efficient investment execution program.