Shenzhen Danbond Technology Co., Ltd. (002618.SZ) engaged in the production of COF and gradually expanded to the upstream and downstream products including flexible substrate material and COF packaging products. It has mastered manufacturing technique of 3L-FCCL and 2L-FCCL and realized self-sufficiency of FCCL, through independent R&D. Its integrated gross margin reached 53.41% in 2010, which was much higher than that of the industry average of 21.7%.
In 2011H1, capacity utilization of COF flexible packaging substrate and COF products hit 99.89% and 99.75% respectively, both of which approached to full capacity.
Capacity and Capacity Utilization of COF, 2008-2011
|
|
FPC
(m2)
|
Capacity Utilization of FPC
|
COF Flexible packaging Substrate (m2)
|
Capacity Utilization of COF Substrate
|
COF Product
(10,000 units)
|
Capacity Utilization of COF Product
|
|
2008
|
89,428.88
|
99.4%
|
54,471.20
|
77.8%
|
182.96
|
91.48%
|
|
2009
|
50,095.35
|
71.6%
|
77,475.44
|
96.8%
|
213.91
|
85.56%
|
|
2010
|
49,904.58
|
71.3%
|
74,726.69
|
93.4%
|
243.78
|
97.51%
|
|
2011H1
|
28,147.82
|
80.4%
|
39,957.41
|
99.9%
|
124.69
|
99.75%
|
Tablet PC and mobile phone are following the trend of thinner and lighter, which provides FPC market a promising future. Danbang’s profitability prospect depends on whether it can maintain the scarcity advantage on COF technology.