Recently, the concept of TWS headsets has become hot, and related stocks including DGYA Technology have received high attention. It is reported that YAKJ Technology has bulk supply of liquid metal parts to Sony headphones.
In fact, apart from headphones, DGYA's liquid metal materials are widely used in consumer electronics, automotive and other industries. At the same time, the company's layout in the field of magnesium alloys has also achieved good results. A new material giant is taking shape.
Liquid metals have been widely used
Liquid metal, also known as "amorphous alloy", has characteristics such as good strength, high hardness, and near-net-shape forming (referring to the use of a small amount of processing or no processing after forming a part, which can be used as a forming technology for mechanical components) and other characteristics Used in smart wear, mobile phones, automotive high-end parts and other fields. YAKJ Technology's layout of liquid metals can be traced back to 2010. The company has cooperated deeply with the Institute of Metals of the Chinese Academy of Sciences and introduced an innovative scientific research team composed of researchers, professors, etc. from the Institute of Metals of the Chinese Academy of Sciences. The team mainly studies the industrial application of bulk amorphous alloys.
Today, in terms of liquid metal material research and development, molding equipment, molding process, surface treatment, etc., DGYA Technology has completed the full chain integration. The company has three core technologies in bulk forming technology, material composition and equipment manufacturing. It is one of the few companies in the world that has been able to publicly announce the ability to form large bulk liquid metal. It also has a world-leading production of zirconium-based Crystal alloy production line.
For a listed company, if it cannot achieve large-scale application, no matter how good the technology is, it will not bring actual benefits to the company and it will not return the support of shareholders. Fortunately, in the pace of industrialization of liquid metal, DGYA Technology is also at the forefront.
DGYA Technology's liquid metal industry application is mainly divided into two major sections. One is the consumer electronics structure. The company is one of the very few suppliers in the industry to realize the commercial use of liquid metal precision structural parts in the field of consumer electronics. It has established cooperative relationships with Huawei, OPPO, Lansi Technology and other well-known customers.
From the outside perspective, due to the competition in the consumer electronics market, the competition from purely pursuing shipments and cost-effective products has shifted to high-end boutique and differentiated competition. The refined route is becoming more and more light, thin, beautiful, wear-resistant, corrosion-resistant, and high-strength in consumer electronics. In this case, the application prospects of liquid metals with outstanding performance advantages are expected.
Especially with the advent of the 5G era, the application progress of liquid metals in the field of consumer electronics may be significantly advanced. It is understood that the liquid metal Face ID bracket produced by Yi'an Technology has been supplied in batches to well-known domestic mobile phone manufacturers such as Huawei, Xiaomi and OPPO.
In addition, the appearance of folding screen mobile phones has provided new application opportunities for liquid metal. Hinge technology is one of the breakthrough points for folding screen mobile phones. Liquid metal has a very good forming ability and dimensional stability is very good. It can meet the requirements of the thickness, strength and accuracy of the hinge support, which is one of the main solutions of the support. In this regard, Yi'an Technology has cooperated with multiple customers to develop hinges and follow up mass production and supply.
The second is auto parts. DGYA Technology has long been committed to the research and development of lightweight new materials for new energy vehicles, with strong lean production capabilities and complete industrial chain advantages. As a supplier, the company has entered the supply chain of BYD, Geely, LG and other companies. The company's liquid metal car door lock has been successfully applied to Tesla's new energy vehicles.
It is worth mentioning that, with good biocompatibility, liquid metal can also be used in medical equipment fields such as scalpels, bone plates, artificial teeth, biosensors, etc. With its resistance to space radiation and no grain boundaries, liquid metals can be used in the aerospace industry.
Facing the broad application prospects of liquid metals, YAKJ Technology is also continuously expanding its industrialization capabilities. In July this year, the company and the Qingxi Town People's Government of Dongguan City signed a project investment framework agreement to jointly build a liquid metal project. In August, the company signed a cooperative investment framework agreement with Sanxiang New Materials to invest in liquid metal projects together.
Resource integration platform is respected
It should be pointed out that DGYA Technology is not just a liquid metal materials research and development enterprise. In essence, the company is a new material giant with strong growth potential.
As mentioned earlier, DGYA Technology has achieved many results in the research and development of lightweight new materials for new energy vehicles. The company has leading R & D strength in the fields of mold research and development design, new material technology, surface treatment, etc. It has more than 100 aluminum-magnesium alloy die-casting machines and the nation's leading 4200T aluminum-magnesium die-casting machine. In the first half of 2019, the company's auto parts business income reached 150 million yuan, a year-on-year increase of 12.65%.
The expansion of DGYA New Energy Vehicle's lightweight new materials business is obvious. In the semi-annual report of 2019, the company disclosed that the first phase of the Chaohu DGYA Yunhai Light Alloy Precision Die Casting Production Base Project has been put into operation, and the second phase of construction has also started gradually. In August this year, the company signed a four-party cooperation investment framework agreement with Ningde Times, Sanxiang New Materials and Wanshun Group, and plans to jointly invest 2 billion yuan to build a magnesium alloy material project. In the company's view, this cooperation can use Ningde's local rich new energy vehicle-related industrial resources and good supporting environment to create a first-class magnesium alloy manufacturing enterprise and develop and improve the new energy vehicle-related industrial supporting chain.
In the field of medical magnesium alloys, DGYA Technology has a deeper layout.
As early as 2011, DGYA Technology developed high-end magnesium-based medical device products by introducing a high-level innovative scientific research team. In mid-July this year, DGYA Technology announced that it had received the clinical trial approval for medical devices issued by the State Drug Administration. . The company's biodegradable metal screw has submitted CE certification information to relevant foreign notified bodies, and is currently awaiting certification.
This product is highly anticipated by DGYA Technology. According to industry experts' predictions, the average annual compound growth rate of China's orthopedic industry in the next 10 to 15 years is about 10% to 15%, and the market size of this medical magnesium alloy material alone can reach 12 billion yuan. From this perspective, the potential market for its degradable magnesium bone fixation screws is huge.
From the perspective of some brokerage analysts, the core competitiveness of DGYA Technology is not just a certain technology or product, but its ability to acquire, research and develop and integrate new materials and technologies.
Products
Amorphous alloy
Liquid metal has excellent strength, high hardness, and net shaping capability. Liquid metal can be widely used in wearable products, SIM card cover, hinge and other fields.
Consumer Electronics
After more than 20 years of production and operation, It has a mature 3C production chain and molding technology, the main consumer products are mobile phone accessories, camera parts and LED accessories, etc.
Notebook parts
With the continuous improvement of production capacity in Eontec, in the notebook project has also made great progress. We provide thin-walled, lightweight, anti-collided solution. The thinnest wall thickness can meet 0.45mm.
Automotive Parts
The company is good at building structural parts with tight tolerances. This is the main reason that our auto customers (mainly in Europe and United States) like to work with us. The typical big part — car door frame, is produced in 4000T die casting machine which is one of the world's biggest die casting machine. We are able to control the flatness and tight tolerances even though the part is as thin as 2mm.
