CRI sends congratulations to Tongda Hong Tai (2363.HK) on going public in HKEx on Mar. 16, 2018. As a consultant of the listing, CRI has made profound researches and analyses on the industry Tongda Hong Tai engages in.

Tongda Hong Tai was founded in Changshu, Jiangsu in 2010. It is a leading manufacturer of laptop cases and tablet computer cases in China. CRI report shows that the shipment volume of laptop cases and tablet computer cases of Tongda Hong Tai ranked top 5 on the Chinese market from 2015 to 2017.

CRI also indicates that with growing popularity of mobile internet in China and the world, the increasing users of smart phones and wide spread of APPs come as shock to the traditional market of PC (laptops, desktop computers and tablet computers). There are still opportunities for segment markets of the laptop and tablet computer market in the world.

According to CRI, the global market size of game laptops continued to grow from 2013 to 2017, with the CAGR of yearly sales volume up to above 20%. In 2017, the global shipment volume reached 5 million sets. The sales volume of computers with tablet plus keyboard, represented by Surface Pro of Microsoft, also keeps rising. Manufacturers of laptop cases should seize the opportunities to explore segment markets. Due to the constant upgrading of global laptops and tablet computers, the case material shifts from traditional plastic to metal stuff as aluminum-magnesium alloy, which results in the increasing price of the cases. That is beneficial for manufactures of laptop cases to earn more profits when it is difficult to boost the sales volume.

According to CRI, laptops which install Windows operating systems will not be replaced by other mobile devices installing IOS, Android or Google Chrome in a short term. The service life of laptops is usually 3 to 5 years. Concerning the displacement demand, the global sales volume of laptops will only decline in a narrow range from 2018 to 2022. The screen size of smart phones now reaches 5.5 inches and sees few chances to rise in the future in light of portability and feasibility. The screen size of mainstream tablet computers is over 8 inches. Given the user experiences of playing games and watching movies, they will hardly be replaced by smart phones. Despite the limited performance of tablet computers of over 10 inches, they can provide similar experiences of laptops via an out-built keyboard, so as to better experiences of working 0and playing games.

CRI expects that the 5G market will boom in 2019 or so. At then time, the 5G function will be added to more laptops and tablet computers in order to improve user experiences of mobile office and entertainment. Since the social APPs become more popular, traditional communications, such as voice phones and text messages, will be less frequently used. The greatest usage of smart phones does not lie in voice services but the Internet access and other services as work, games and online videos. The experiences of the deep application of above services on smart phones are worse than those on the laptops and tablet computers. With technological progresses, the portability and standby time of laptops and tablet computers is improving. Therefore, CRI estimates that the coming era of 5G is favorable for the sales of laptops and tablet computers.

The post Congratulations from CRI to Tongda Hong Tai (2363.HK) on Listing in Hong Kong Stock Exchange first appeared on CRI Report.

According to CRI, the global market size of wiring harness was about USD 156.9 billion in 2016, with a CAGR of 5.4% during 2012 to 2016. Among that, the market size of communication equipment and data center segment reached USD 18.4 billion, with the CAGR growing to 10.7% during 2012 to 2016. The market developed fast as global mobile subscribers and Internet subscribers grew largely, which promoted the demand for relevant equipment.

Rapid development in global communication industry in the past two decades results in an increasing demand in cables for communication equipment. Development and increased access in Internet in the world is promoting construction in data centers as well as demand for cables. In the past two decades, China witnessed the highest economy growth in the world. Its growth in industry, communication and the Internet are also prominent across the world. According to CRI, the market size of wiring harness was approximately CNY 402.9 billion in 2016 in China, with a CAGR of 8.5% during 2012 to 2016. Of which, market size of cables for communication equipment and data center segment reached CNY 28.6 billion, with the CAGR growing to 13.7% during 2012 to 2016. The rapid growth mainly comes from: (1) China’s high growth rate in industry in the world; (2) the largest and ever-growing number of mobile subscribers and Internet subscribers in the world; (3) large export from China as the world’s major producer each year.

A number of production bases are established in China by global major manufacturers of communication equipment and data center segment. After development for over 20 years, China’s manufacturing industry of communication equipment and data center segment presents high barriers including capital, technology and client. Among all, barriers of clients are particularly formidable. Communication equipment giants as Huawei and ZTE have been in long-term relationship with their suppliers. For example, Huawei has been working with Time Interconnect Technology for more than 20 years. Time Interconnect Technology was listed on HKEx on February 13th, 2018. As a major supplier to Huawei, the company offers products with high technology and quality, and involves in R&D of new products on customer requirement. Since quality instability leads to heavy loss, communication equipment manufacturers normally avoid change in their wire & cable suppliers. Time Interconnect Technology has been a market leader in communication equipment and data center segment in China for serving Huawei and many other quality customers.

According to CRI, the global market size of wiring harness will reach USD 220.3 billion in 2021, with a CAGR of approximately 7.0% during 2017 to 2021. Of which, market size of communication equipment and data center segment will reach USD 39 billion, with a CAGR of approximately 16.2% during the same period. CRI expects that China’s market size of wiring harness will reach CNY 614.3 billion in 2021, with a CAGR of 8.8% during 2017 to 2021. Of which, the market size of communication equipment and data center segment will reach CNY 64.5 billion, with a CAGR of 17.7% during the same period. in the next few years, global market size of communication equipment and data center segment will maintain a rapid growth, primarily due to: (1) constantly growing numbers in Internet subscribers and communication subscribers; (2) raising demand of apps for bandwidth and data as a result of development in mobile Internet; (3) growing demand for communication equipment and data centers along with development in new technologies such as cloud computing and IOT

CRI expects a consistent growth in wiring harness industry both in China and the world during 2018 to 2021. It is also expected that investment opportunities will emerge constantly throughout the industry chain. Growth potential for communication equipment and data center segment, vehicle segment and industrial automation segment remain positive.

Source: https://www.cri-report.com/blogs/4-company-news/135-cri-as-industry-consultant-or-time-interconnect-1729-hk-on-hkex.html

The post CRI as Industry Consultant for Time Interconnect (1729.HK) on HKEx first appeared on CRI Report.