PCB Drill Bit Research 7.27: Structural Upgrade and Profit Release Accelerating, Focus on the Alpha of the Track

English summary

# Structural upgrade is the main logic for drill bit prices. Since June, leading manufacturers have officially started batch shipments of Rubin drill bits. Rubin boards use a combination of 4 drill bits, of which the fourth bit has a value greater than the sum of the previous three bits, representing a leap in technical barriers and value. The average price increase has exceeded market and company expectations. It is estimated that Dingtai High-Tech's average price will increase by 25% in the next two months. # The supply-demand gap continues to widen, and a new round of price increases is expected in Q3. At present, leading manufacturers' order backlogs are continuously hitting new highs, reflecting 'the more production expansion, the more shortage'. In addition to domestic demand, overseas high-end demand should not be ignored. # Profit margins are expected to improve beyond expectations, driving accelerating profit growth. The added value of high-end drill bits is significant, coupled with the scale effect brought by production expansion, the alpha of the drill bit track continues to stand out, and profit margins are undergoing better-than-expected changes. The current position offers a high cost-performance ratio. It is recommended to focus on manufacturers with capacity/technology advantages. Welcome to exchange for industry details!