Increased penetration rate of new energy vehicles

With the intensification of automotive electrification, the voltage and output power of automotive circuit systems have been greatly improved, and critical components have imposed more stringent requirements on the withstand voltage and impact resistance of electronic components. Changes in working conditions have placed new demands on the performance of capacitive components in electronic systems, thereby stimulating the demand for film capacitors in the automotive industry.

In high-voltage electrical units such as DC/DC, motor control systems, and battery management systems, the use of thin film capacitors will also increase with the promotion and popularity of new energy vehicles. Statistics show that from January to November 2017, the production and sales of new energy vehicles completed 639,000 and 609,000 vehicles, respectively, an increase of 49.7% and 51.4% year-on-year respectively.

There is a clear trend for thin film capacitors to replace electrolytic capacitors, which is expected to increase by 19.8% CAGR over the next four years. As the volume of the thin film capacitor becomes smaller and the withstand voltage level is maintained, more and more companies replace the electrolytic capacitor with a thin film capacitor. BYD "Qin" and Tesla Model 3 have adopted film capacitors. With the increase of its penetration rate and the growth of the new energy automotive industry, the market outlook for film capacitors will be promising.

According to the "Forecast and Investment Analysis Report of Film Capacitor Industry" published by the Industry Research Institute, the value of the film capacitor of a single new energy passenger car is 500-1000 yuan, and the value of the film capacitor of a single new energy passenger car is 1000-2000 yuan. In 2016, the market capacity of thin film capacitors in domestic new energy automotive applications reached 516 million yuan. In 2017, new energy vehicles will bring 471 million yuan of incremental space for film capacitors, which is expected to reach 1.064 billion yuan in 2020 and CAGR of 19.8% in 2016-2020.

In the future, as the popularity of new energy vehicles increases, the penetration rate of thin film capacitors is expected to continue to increase. The company has planned and expanded its production in advance. The current investment of 186 million yuan in the newly built Dongfu plant area has been completed and passed acceptance. Some of them are put into use and are expected to be fully operational within the year. New energy capacitor production is expected to increase in volume in the second half of the year. Profit growth can exceed 20%.