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The depreciation of the Thai baht hits the profit of the Thai PCB factory last quarter
2021-09-20
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Author:Frank

The depreciation of the Thai baht hits the profit of the Thai PCB factory last quarter

The heavy depreciation of the Thai baht last quarter impacted the profits of Thailand's PCB factories in the previous quarter. Jingguo (6108) and F-Trident (4927) experienced exchange losses of 120 million yuan and 80 million yuan last quarter, reducing single-quarter profits. Looking forward to this quarter , Exchange rate fluctuations tend to ease, and exchange loss pressure is expected to be greatly reduced.
According to the quotation data, the exchange rate of the US dollar against the Thai baht was at 29.27 on April 1, and the exchange rate in the second quarter soared to 32.07, which is equivalent to the depreciation of the Thai baht by 9.56%. However, the depreciation rate is calculated based on the exchange rate of 31.1 at the end of the second quarter on June 28. It is still as high as 6.25%, which adds to the difficulty of operating for local manufacturers in Thailand.

The heavy depreciation of the Thai baht in the last quarter caused Thailand’s local PCB exchange loss to exceed expectations. Taking Jingguo as an example, although the order is hot, the capacity utilization rate has risen, and the gross profit margin in the second quarter has been greatly increased to 12.28%, compared with the first quarter. A 5.71% increase of 6.57 percentage points is the first time since the third quarter of 2013, the gross profit margin has returned to double digits.

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    However, Jingguo recognized a foreign exchange loss of 120 million yuan last quarter, which impacted the profit of the industry in the second quarter. The net profit attributable to the parent company in the second quarter was only 9 million yuan, a record low in recent quarters.

As for F-Trident, it was also affected by the recognition of 80 million yuan in exchange losses, which impacted its profit in the second quarter. Last quarter's profit fell sharply to 39 million yuan, a record low since its listing. F-Trident has accumulated after-tax per share in the first half The net profit was RMB 1.75. Judging from the figure of more than RMB 5 for the whole year estimated by the corporate circle, the compliance rate in the first half of the year was low. At present, Trident still maintains its internal target of 10% to 15% revenue growth for the third quarter.

As the exchange rate fluctuations tend to ease in the third quarter (8/21 exchange rate 31.8), and the capacity utilization rate in this quarter has the opportunity to further increase, the impact of exchange loss on the local PCB board factories in Thailand has slowed down, but the overall impact is yet to be quartered The bottom of the exchange rate trend.

However, Thailand is one of the most active areas for PCB expansion this year. According to equipment manufacturers, Thailand and China have expanded their production growth rates. Thailand’s local equipment is very active in sourcing. In addition to F-Trident’s active expansion, Thailand The largest manufacturer KCE and Jingguo's Jingyi Electronics have also continued to increase their production capacity; in terms of products, the production capacity of automotive plates has expanded the most.

Equipment manufacturers also pointed out that PCB manufacturers originally expected orders to climb in July, but the peak season effect did not occur, which was a gap with the original expectations. Therefore, the expansion of production in the third quarter slowed down, and the overall production capacity was delayed by about one season; but after Christmas In 2014, the view is more optimistic, and there should be a chance to resume production expansion in the fourth quarter.