Eternal Materials, the leader in PCB upstream material dry film photoresist, pointed out that its three major business groups have seen their shipments recover. This is likely due to increased capacity utilization, increased gross profit margins, and the recovery of the China market. It is expected that the operation in 2023 can see quarterly growth to the third quarter.
Among them, synthetic resin has benefited from the demand stabilization in China and Southeast Asia. Shipment has grown significantly and the benefits of economy of scale are gradually showing themselves. Profits have also seen noticeable growth.
Eternal mentioned that although the shipment of high-performance materials increased as well, the percentage of high gross profit products has decreased. The product mix has affected the gross profit margin performance. As for electronic materials, dry film photoresist shipment bounced back in March. The second quarter is looking to maintain the performance in hopes of an inventory clearance and a demand recovery in the second half of 2023.
Industry sources pointed out that dry film photoresist is a key material during the image transfer process of PCB production. End-user products are gradually moving toward a demand for light, thin, and high-performance devices. Product structure circuit design has developed toward HDI and high-density fine circuits. Thus, the role of dry film photoresists in image transfer is further highlighted.
On top of that, there is also the vacuum laminator, a crucial piece of equipment for the ABF substrate process. With short-term seasonal factors like the lunar new year holidays passed, the second quarter shipment of vacuum laminators saw growth compared to the first quarter. However, due to the conservative outlook of the overall industry, the growth momentum in 2023 is quite challenging compared to the past 2-3 years.
Vacuum laminators are mainly used during the IC substrate process, with high-end processes also requiring vacuum lamination technology. When chip demand for 5G and automotive applications greatly increases, besides existing IC substrate plants having to expand to satisfy the orders, the strong demand for manufacturing equipment could also continue until 2025.
In terms of planning for new products, Eternal mentioned that in response to the ESG requirements of energy saving and carbon reduction, it will develop end-user applications for synthetic resin. By entering the sustainable development industry, it aims to improve its product portfolio by including solar energy, wind power, lithium battery, and other industrial applications. Currently, these businesses account for around 10% of Eternal's revenue. The hope is to increase that figure to 20% by 2028.
Eternal's revenue in March reached NT$3.817 billion (US$124 million), a 15.94% growth compared to February. The pre-tax profits were NT$193 million, a 58.07% growth compared to February. From January to March, the pre-tax profits were NT$227 million.
Article translated by Jack Wu
