Basic industry risk characteristics

2023-05-15 12:12

(1) Market competition risk

The downstream applications of switching power supply products are wide, and there are more manufacturers. The market pattern is more dispersed and the market competition is fierce. Compared with international large enterprises, the technical level of domestic switching power supply enterprises is relatively weak, and the added value of products is low. Therefore, if domestic enterprises cannot highlight their own advantages, continuously improve their own technology and develop new products according to the changes in market demand, and maintain their competitive advantages, they will face greater risks of market competition and be in a disadvantageous position in the market competition.

(2) Raw material price fluctuation risk

The main raw materials of switching power supply are control IC, MOS tube, rectifier Schottky tube, resistance capacitor, magnetic material, DC line, shell, etc. The main raw materials account for a high proportion of the production cost of enterprises. At present, the manufacturing technology of raw materials is mainly dominated by international mainstream component suppliers, and the bargaining power of enterprises in the industry for upstream raw materials is weak. In the future, due to the influence of market demand and macro environment, the price of the company's main raw materials may fluctuate to a certain extent, which will adversely affect the business performance of the company.

(3) The risk of rising labor costs

Human cost is an important component of enterprise product cost. With the rapid development of Chinese economy, national income level increases year by year, labor prices improve year by year, labor costs of enterprises will rise year by year, thus facing the situation that business costs and expenses increase year by year, if the growth rate of enterprise income scale slows down, the risk of future profit level decreases.

(4) Product certification policy risk

Various countries have corresponding safety specifications or product certification standards for various electronic products. The certification cycle of power supply products is relatively long, and the certification cost is relatively high. When certification standards are updated, manufacturers need to quickly adjust production technology to meet the new certification requirements, so there is a risk of increased certification costs, and the risk of losing market share if they fail to pass the certification in time.

For more industry information, please refer to the "2023-2029 Switching Power Industry In-depth Research and Investment Outlook Forecast Report" of PWC Consulting. At the same time, PWC Consulting also provides industrial research report, industry chain consulting, project feasibility report, specialized special new little giant certification, BP business plan, industry map, industry planning, blue white paper, IPO investment feasibility study, IPO working paper consulting and other services.