With the rise of VR craze in the past few days, related concept stocks in the secondary market have attracted attention again. China's leading ITO conductive film technology company: JSRJ Optoelectronics Technology Corporation has risen sharply for several consecutive trading days.
JSRJ is mainly engaged in the research and development, production and sales of flexible optical conductive materials. At present, the main product is ITO conductive film, which is currently the most commonly used high-transmittance optical conductive film material for the preparation of touch screens and other devices. It can be used in smart phones, VR, tablet computers, and automobiles. Human-computer interaction terminal scenarios with various touch modes such as electronics, including consumer electronics, commercial display, industrial control, office, education and other scenarios.
Through independent research and development, the company has mastered the three core technologies of wet precision coating technology, precision laminating technology, and vacuum magnetron sputtering coating technology, so as to realize the import substitution of the main upstream raw materials IM anti-shadow film and PET high-temperature protective film. Reduce product cost. The company has also become the first enterprise in China's ITO conductive film industry that can mass-produce high-quality IM anti-shadow film and roll-to-roll laminated PET high-temperature protective film.
At present, the company is developing and trial-manufacturing products such as optical release film and OCA, and continues to expand to the upstream of the industrial chain, and continues to promote vertical integration. This business model enables the company to better allocate production resources, enhance competitiveness and anti-risk capabilities by virtue of its leading position in the ITO conductive film market, and also enhance the competitive advantage of ITO conductive film products in other new application fields and other technical routes. , Make the product more vigor and vitality.
Due to the amplification effect of the quality and stability of the ITO conductive film, problems will affect the use of the whole machine. JSRJ attaches great importance to product quality control and conducts full-process inspections on product production through a complete quality control system. In the long-term market competition, its products have won a good reputation with stable quality, and have cooperated with well-known touch models in the industry such as Helitai, Taiguan Technology, Lens Technology, Nanjing Huaruichuan, Industrial Electronics, Truly Optoelectronics, Dijing Optoelectronics, etc. Group manufacturers have formed a stable cooperative relationship, and their products basically cover major domestic downstream touch film manufacturers.
According to the latest research report released by Fuji Chimera Research Institute, Inc., in 2020, JSRJ's share of the global ITO conductive film market is about 30%. , Second only to 38% of Nitto Denko Japan. In 2018, JSRJ's market share was 20%. An increase of 10% in less than three years proved the market competitiveness of its products.
Recently, the popular VR has once again attracted market attention due to the substantial increase in sales of VR products from SDGE Technology Corporation. Next year, technology giants such as Facebook, Sony and Apple will release new VR headsets; Bytedance will invest 5 billion in VR Xiaoniao KanTech. The industry believes that the layout of the AR/VR market by the giants will further catalyze the growth in demand for touch screen displays. In addition, another good news is that in September, Apple will release a new product Iphone13, which will drive the sales of smart phones to a big wave.
In the automotive field, with the highly prosperous automotive market and the advent of the Internet of Vehicles era, the once niche in-vehicle screen has become the third largest small and medium-sized panel market after mobile phones and tablets, and is developing towards multi-screen, large-screen, and touch control. The market has grown rapidly, and touch screens have gradually entered the automotive market as standard equipment. In particular, the domestic Xinyuan car has continued to increase its sales volume this year, providing market opportunities for JSRJ. In addition, the demand for touch screen displays in many fields such as office, education, and industrial control is also increasing.
The booming downstream market does not mean that upstream ITO conductive film companies will be "wet rain and dew". The industry has a high barrier to entry. Under normal circumstances, ITO conductive film companies pass the verification of a touch module manufacturer, and need to go through multiple steps such as factory inspection-feeding-proofing-trial on a small range of products-entering the market, etc., and need to go through a strict certification process and enter It takes a year or more for branded touch module manufacturers. In this process, many companies will be out. Once entering the customer supply system and forming a stable cooperative relationship, the customer will be difficult to easily replace the supplier due to risk considerations.
JSRJ has long-term accumulated customer advantages and actively promotes its products among end customers. It has established contacts with several domestic first-line terminal brands, large-scale solution companies (ODM manufacturers) and well-known foreign brands, and imported the company's products into the other party's qualified materials Business directory. Under the trend of increasing market concentration of downstream customers and end customers, the company's stable and high-quality customer base enables the company to maintain sufficient influence and attractiveness, occupy a dominant position, and ultimately become the biggest beneficiary of the market.