Market analysis of electronic components in downstream industries of printed circuit boards

The operating costs of listed magnetic component companies have basically risen, ranging from 15% to 86%. Among them, there are 6 magnetic companies with a change of more than 40%, namely: Hengdian East Magnetic, Jingquanhua, Sunlord, Maijie Technology, Igor, Platinum Branch New Materials.

Reasons for rising operating costs

In the first half of 2021, with the healthy progress of epidemic prevention and control, the global economic development generally improved, and the domestic economy continued to recover steadily. However, due to the imbalance of supply and demand in the supply chain, the irrational rise of raw material prices, the skyrocketing cost of ocean-going logistics in Europe and the United States, the sharp fluctuation of the RMB exchange rate, and the complex and changeable international trade situation, many industries have suffered from operating pressure, and the competition in the industrial chain has intensified. Demand has had an impact.

At the same time, with the substantial increase in operating income of magnetic component companies, operating costs will also increase accordingly.

In addition, some magnetic component companies focus on product research and development, market development, management reform and continuous innovation, which is also one of the important reasons for the rising cost. After all, the cultivation of new markets requires cycles, and new product development requires short-term large-scale investment. Although this undoubtedly increases short-term cost pressures for magnetic component companies, these investments are early investments and layouts that must be experienced in long-term development.

  Summarize

At a time when the current domestic epidemic situation is stabilizing and economic recovery is on the agenda, there are still many hurdles facing magnetic component companies. Inflation in the international environment has led to rising prices of some raw materials, as well as increasing labor costs. These problems coexist for magnetic component companies.