Affected by the explosion of demand for national defense and 5G base station construction, Fujita is also facing the problem of insufficient production capacity.
Fujita was founded in 1998, and became a holding subsidiary of AVIC optoelectronics through strategic cooperation in 20 13, and also became a member of China aviation industry group.
Relying on the background of state-owned enterprises, Fujita's top ten customers include leading manufacturers of communication equipment such as Huawei, ZTE and RFS, as well as subsidiaries or research institutes of domestic military industrial groups such as China Aerospace Science and Technology Group and China Electronics Technology Group.
Long-term and stable cooperation with customers is Fujita's advantage. 20/kloc-from 0/7 to 2020, Huawei and its subsidiaries have been Fujitec's largest customers, and the cooperation between the two parties began at1999; The subsidiary of RFS has also been ranked among the top five customers of Fujitsu, and the cooperation between the two parties began in 2008.
However, the following problem is that Fujitec's customer concentration is high, and the proportion of the top five customers in revenue has been increasing in recent years, from 20 18 to 2020, it will be 7 1.26%, 75.03% and 78.38% respectively. In 2020, the revenue of Huawei and its subsidiaries will account for more than 30% of the total revenue.
For the problem of large customer concentration, Fujita repeatedly reminded the risks in the annual report. "If the customer competitiveness of these companies declines, or the share of purchasing from our company decreases, it will adversely affect the company's production and operation. "
Another advantage of relying on state-owned enterprises is that it is easier to obtain bank loans than private enterprises. According to the reply to the announcement, 70% of the funds of the AVIC Fujita Industrial Base Project (Phase I) come from bank loans, with an estimated amount of 654.38+33 billion yuan. On July 26, Fujita announced that some fundraising projects are planned to pay the funds by bank acceptance bills first, and then replace them with the raised funds in equal amount.
Fujita's main business is R&D, producing and selling RF coaxial connectors, RF coaxial cable components, RF cables and other products, of which the income of connectors in recent years accounts for about 50%. Since its establishment, Fujita has been engaged in the domestic substitution research of RF coaxial connectors, and has led the formulation of many international standards of IEC.
Connector is one of the basic components necessary for the electrical connection of the whole circuit system. RF coaxial connector has the characteristics of small size, light weight and convenient use, and is suitable for RF cable connection in high-frequency circuits of radio equipment and electronic instruments. According to the report released by CICC Qixin International Consulting, the global connector application market in 20 19 is mainly automobile (23.7%), communication (22.2%), consumer electronics (13. 1%) and industry (12.3%).
Fujita's products are mainly used in the fields of communication and national defense, among which communication products are mainly used in wireless communication base stations, and national defense products are mainly used in radar, airborne, satellite-borne, missile-borne, shipborne and vehicle-borne. Fujita disclosed the revenue ratio of the two products on June 17 last year. In 20 17, the revenue of communication products accounted for 76. 12%, but in recent years, the revenue of defense products has gradually expanded, and the proportion of defense products from 20 18 to the first quarter of 2020 was 46.2% and 45.83% respectively.
Compared with communication products, the gross profit margin of defense products is higher, about twice as much as the former. With the adjustment of product structure, Fujita's gross profit margin has been rising in the past year, from 26.96% in the middle of last year to 465,438+0.865,438+0% in the middle of this year.
In addition, the raw materials of Fujita products are copper and engineering plastics, and the raw material cost of main products accounts for more than 72.438+0% of the production cost. In the first half of this year, copper prices rose sharply. According to the data of Yangtze nonferrous market, the price at the beginning of the year was 58,000 yuan per ton, and the price in May 10 was 77,050 yuan per ton. However, Fujita's main business cost did not increase, but decreased by 8. 19%.
In this regard, Fujita responded that, on the one hand, the proportion of revenue from defense products has increased, and the gross profit margin of such products is high, and the proportion of material costs is relatively low. Therefore, overall, the company's operating costs do not increase but decrease; On the other hand, the company's product materials mainly include brass bars, aluminum, stainless steel and so on. It is estimated that the impact of rising copper prices on operating costs is about 3.54 percentage points.
In the past three years, Fujita's income has been increasing year by year. The revenue from 20 18 to 2020 is 393 million yuan, 5180,000 yuan and 54 10/0,000 yuan respectively. In the first half of this year, Fujita's revenue was 288 million yuan, a year-on-year increase of 14.75%. The increase in revenue stems from the explosion of communication and defense market demand faced by Fujitec products.
From the perspective of communication industry, in 20 19, domestic 5G commercial licenses were issued, and the construction of 5G base stations entered the fast lane. According to the latest data released by the Ministry of Industry and Information Technology, as of August 2002 1 year, China has built and opened over110,000 5G base stations, accounting for more than 70% of the global total.
However, the construction of 5G base stations is still the general trend. Cinda Securities said in a recent research report that it will accelerate the construction of 5G base stations in the second half of the year, with an estimated construction of more than 440,000. In addition, affected by the epidemic, the construction of foreign base stations is almost at a standstill, and the market space is large. In the first half of this year, Fujita's domestic income accounted for nearly 96%. Fujita also revealed that there are plans to expand overseas markets, mainly relying on foreign agency channels to carry out business.
From the perspective of the national defense industry, Guotai Securities pointed out in the research report that weapons and equipment will enter a five-year heavy-volume construction strategy in the 14 th Five-Year Plan. Among them, the national defense policy has changed from "steadily advancing the goal of strengthening the army" to "building the ability to prepare for war", which means the increase of weapons and equipment.
In the first half of this year, the eye-catching semi-annual reports of several military enterprises also verified the high prosperity of the military industry. For example, the net profit of Zhenhua Technology (000733, SZ) increased by 1. 19 times. Essence Securities said in the research report that the performance growth rate of the military industry in the first half of this year reached the largest value in the past five years.
With the outbreak of industry demand, Fujita is currently facing the problem of insufficient production capacity. Fujita said in the announcement of institutional investors in September that the company's current production capacity is insufficient, which has partially affected the delivery of orders. The annual report of 2020 shows that the capacity utilization rates of connectors and cable components are 106.3% and 103. 1% respectively.
At present, Fujita is also expanding its production capacity through the construction of industrial base projects. This year's semi-annual report shows that the progress of the first phase of the company's industrial base has reached 90%, and the progress of the second phase has reached 60%. According to Xi 'an.com's report in August this year, the first phase of the project is expected to be put into use by the end of this year, and the second phase will be completed before the end of this year.
It is worth noting that compared with electronic components such as chips, sensors and discrete devices, the market space of RF connectors is relatively small. Even Amphenol Group, the world's leading connector manufacturer, earned only 930 million yuan in China market in 20 18, which is a fraction of the trillion-dollar domestic chip market.
National business daily