15June2022EquityResearchReport

ChinaPCBindustry

Bottomingout;focusonApple-relatedFPC

Equities

ElectronicEquipment&

Instruments

China

令PreferFlexiblePCBduetoresilientdemandfromAppleandhealthycompetitivelandscape

令CCLunderpressureduetopricescissors,butlong-termpricingpowershallstayintactduetolimitednewsupply

令BuyratingsonDongshan,Shengyi,andHoldonShennan

WeseepositivechangesinPCB.PCBmakersarehavingatoughtimein2Q22e,mostlyduetothedemandslowdowninconsumerelectronicsandsluggish5Gmarket.However,weareseeingincrementalchangesinthisquarterthatcouldhelpthesectortobottomout,including:1)CCLpricecontinuestodecline(additional10%in2Q22e);2)depreciationofRMBshallhelpPCBmakerstohavesomeFXgains;and3)resilientdemandfromApple,EV,servers,and5GshouldprovidesupportonutilisationratesandthusGPMshouldrebound.

ChaseDing*(Reg.No.S1700520010003)

Analyst,A-shareTechnologyHardware

HSBCQianhaiSecuritiesLimited

chase.ding@

+8675588983409

FrankHe*(Reg.No.S1700517120005)

HeadofA-shareTechnologyHardwareResearch

HSBCQianhaiSecuritiesLimited

frank.fang.he@

+862160813809

*Employedbyanon-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulations

MaintainBuyonDongshan.FPCisstillourpreferredsub-sectorinPCBaswesee

limitednewsupplyandresilientdemandfromiPhone.Wehaven’tseenordercutsin

iPhoneandwillhavemorevisibilityenteringthepeakseasonof3Q22e.Wethinkthe

markethasunderestimatedDongshan’sgrowthopportunitiesiniPhonemoduleFPC

andEVBMS(batterymanagementsystem),whichwillsupportitstoplinetogrow

13%in2022e(HSBCestimate).Inaddition,cost-cuttingandRMBdepreciationare

thetwodriversforbottomlinegrowthof22%in2022e.Thestockistradingat

14x/1.9x2022ePE/PBafterfactoringinthelockdownimpact;ourTPimplies46%

upsidefromthecurrentlevel.Potentialsharepricecatalysts:1)Launchofnew

iPhonemodelsin3Q22e,2)declineofrawmaterialprices,and3)FPCdesign-wins

fromTesla.Seepage6forrisks.

MaintainBuyonShengyiTechnology.Shengyineedstosharetheburdenwith

PCBmakersduetothedemandslowdownanddecliningCCLpricesin2Q22e.

However,wethinkthenegativesarelargelypricedinafter:1)a30%correctioninsharepriceYTD(vs-30%fortheSWSElectronicsindex);and2)downwardrevisionsofconsensus.Webelievetheweakeningrawmaterialpriceswillhelptotaketheloadoffstarting3Q22eanditsPCBsegmentshallprovidesomesharepricesupport.Ourtargetpriceimplies74%upside.Catalysts:bettercopperprice,sharegainin5GPCBin2H22e.Seepage9forrisks.

AsiamoneyBrokersPoll2022

Votingopens1June–29July

Ifyouvalueourserviceandinsight

Votenow

Keychangestoratingsandestimates

Current_______TP________RatingUpside/________PE____________HSBCvsconsensus____

CompanyTickerCurrencypriceOldNewdownside2022e2023e2022eEPS2023eEPS

DongshanPrecision002384CHRMB18.6530.0027.20Buy46%13.811.7-1%-6%

600183CH

002916CH

ShengyiTechnology

ShennanCircuits

28.10

94.30

30.40

94.30

16.13

91.47

-11%

-6%

Buy

Hold

RMB

RMB

74%

3%

13.2

22.3

14.9

26.9

-6%

-5%

Source:Companydata,HSBCQianhaiSecuritiesestimates.Pricedasofcloseat14June2022

Disclosures&Disclaimer

ThisreportmustbereadwiththedisclosuresandtheanalystcertificationsintheDisclosureappendix,andwiththeDisclaimer,whichformspartofit.

Issuerofreport:HSBCQianhaiSecuritiesLimited

ViewHSBCQianhaiSecuritiesat:

2

250

200

150

100

50

0

Equities●ElectronicEquipment&Instruments15June2022

PCBvsCCL?whohasthepricingpowernow?

MostCCLmakershadaflourishingyearin2021withbothrevenueandnetprofithittingrecordhighsthanksto:1)mountedCCLprices,and2)ramp-upofnewcapacities.Meanwhile,wesawPCBmakerssufferingintermsofprofitabilityastheyweresqueezedbyincreasingCCLpricesandfixedcontractpriceswithclients.

However,wethinkthestorywillreversein2022eandCCLmakerswilllikelybesqueezedbyelevatedrawmaterialprices(copper)anddecliningCCLpricesduetoasupply/demandimbalance.

CCLnewcapacitytoexpandfasterthanPCBin2022e

WeexpectChina’sPCBcapacitytoincreaseapproximately50msquaremetres(sameaslastyear),mostofthemarerigidPCB,whileCCLcapacityshouldincrease66msquaremetresin2022e(vsonly25min2021),accordingtoCCLInformationandourestimates,thusshouldputmorepressureonCCLmakers.

Exhibit1.GlobalPCBmarketbreakdownandforecasts

______y-o-y_______

USDm2010202020212022e20212022e

2026e

CAGR21-26e

ICsubstrate5,69310,18714,19815,87039%12%21,4358.6%

HDI5,1629,95211,79112,38618%5%15,0124.9%

Multi-layers24,22924,76431,05332,18625%4%37,1543.7%

Single/double-layer10,3247,8339,3499,56819%2%10,7792.9%

Flexible7,39312,48314,05814,58613%4%17,1794.1%

Total52,80165,21980,44984,59623%5%101,5594.8%

Source:Prismark

Exhibit2.PCBandCCL:forecastnewcapacitiesinChina

80

70

60

50

40

30

20

10

0

20212022e2023e

CCLnewcapacityinChina(msqm)PCBnewcapacityinChina(msqm)

Source:CCLInformation,HSBCQianhaiSecuritiesestimates

Exhibit3.2021newCCLcapacityinChina

NewlyplannedCCLcapacityinChina(msqm)

NewCCLChina(m

capacitysqm)

in

Newlyconstructed

CCLcapacityin

China(msqm)

Source:CCLInformation,HSBCQianhaiSecurities

Exhibit4.PCBcomparables

Ticker

Rating

Company

PEGEV/ROE

EBITDA(%)

22e22e22e

TargetCurrencyPrice

RMB

Market CapUSDm

EPSCAGR21-23e

PE (x)23e

PB (x)22e

DAV

USDm

PE (x)22e

PriceUpside

%

ASharePCBsector

002384CHDONGSHANBuy27.20CNY18.6546%4,7303113.811.71.921%0.79.314.8

600183CHSHENGYITECHBuy28.10CNY16.1374%5,5392414.913.22.50%-9.818.0

002916CHSHENNANHold94.30CNY91.473%6,9582126.922.34.616%1.617.419.1

002938CHAVARYHOLDINGNRNACNY28.909,8262619%0.810.915.1

002463CHHDGFNRNACNY17.003,6362718.314.13.530%0.517.617.2

603228CHKINWONGNRNACNY24.602,9571517.813.82.526%0.514.513.6

300476CHVGTNRNACNY16.652,9121517.813.83.741%0.317.518.6

002436CHFASTPRINTNRNACNY10.352,1941620.917.03.425%0.717.115.9

Average

19.816.03.426%0.715.816.6

Note:Pricedasof14June2022.NA–NotApplicable.NR–NotRated.Companydata,WIND,HSBCQianhaiSecuritiesestimates(forratedstocks)

3

Equities●ElectronicEquipment&Instruments15June2022

DongshanPrecision(002384CH,Buy,TPRMB27.20)

Applecontinuestoshowresilience

DongshanismainlyexposedtotheiPhonemarket,forwhichwehaven’tseenordercutsin2Q22e,andisthereforelessimpactedbythesluggishdemandontheAndroidside,implyinggoodresilienceinthedowncycle.WeareseeingrevenuefrommajorApplePCBsupplierssuchasTripod,Flexium,andCareerbottomingoutinMay.BasedonDongshan’srevenuefromFPCandApple’sprocurementvolumeforFPC,itnowhasc23%marketshareinApple’sFPCmarket,accordingtoourestimates,whichwethinkstillhasgrowthpotentialinmodulecomponents,suchasdisplaypanels,cameramodules,andantennas.

Exhibit5.RevenuetrendofmajorPCBsuppliersofApple

1,600

1,400

1,200

1,000

800

600

400

200

-

RMBm

Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22

TripodTechnologyFlexiumCareerTech

Exhibit6.MajorApplePCBsuppliers’revenuey-o-ygrowthrates

140%120%100%80%60%40%20% 0%-20%-40%-60%

Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22

TripodTechnologyFlexiumCareerTech

Source:Wind

Source:Wind

FPC+PCB+metalprecisionaregrowthdriversinEV

QuantifyingtheEVopportunity

WeidentifyDongshan’sthreeopportunitiesinautosandexpectthesethreebusinesses(FPC+PCB+metalprecision)combinedtocontributecRMB4.3bninrevenuein2024e,accountingforc8%oftotalrevenue,upfromc2%in2021.

1)Flexibleprintedcircuit(FPC).WeexpecttheaddressablemarketforautoFPCstodoubleeveryyearbetween2020-23eandreachRMB1.5bnin2023e,mostlydrivenbyFPCadoptioninEVbatterymanagementsystems(BMS)thatshouldhelpEVstoreduceweightandassemblycostsbyautomation.LeadingbatteryOEMsupplierssuchasCATLhavealreadyadoptedthistechnologyinTeslamodels.

WeforecastFPCusagepervehicleincreasesfrom0.5sqmin2021to1.1sqmin2023eduetomorecomplexfunctions,suchasADAS(AdvancedDriverAssistanceSystem)andLidar(lightdetectionandranging).

Dongshanplanstoexpanditscapacitymultipletimesbyend-2023efromsupporting0.4mcarsin2020,implyingsignificantgrowthpotentialinthismarket.WeexpectEVFPC-relatedrevenuetoincreasetocRMB800mandaccountforc2%oftotalrevenuein2023e,andtheGPMofthissegmenttobeabovetheGPMofconsumerelectronicsduetohighentrybarriersandlimitedcapacity.

2)Rigidprintedcircuitboard(PCB).SubsidiaryMulteksuppliesmulti-layerandHDIPCBsfordatatransmission,heatmanagement,andpowerchargingsystemsinautos.TeslaandFordarethekeycustomers.WeexpectrigidPCBrevenuetoreachcRMB780min2023e(2%oftotalrevenue).

3)Dongshan’smetalprecisionbusinessprovidesmetalstampingandweldingforautoparts,suchasseatsandheadrests.WeexpectrevenueheretoexceedRMB1.6bnin2023eandbecomeanewgrowthdriverwiththelaunchoftheShanghaiLingangfactory.

4

Telecom

equipmentand

metalprecision

11%

FPCandPCB64%

Equities●ElectronicEquipment&Instruments15June2022

Potentialsharepricecatalysts:1)designwinsfromTeslaandotherEVmakers,2)declineofrawmaterial(mostlyCCL)prices,and3)releaseofnewiPhonemodelsin3Q22e.

Exhibit7.Dongshanauto-relatedrevenueestimatesandbreakdown

RMBm

2021

2022e

2023e

2024e

1,457

FPC

379

763

169

Multek(RigidPCB)

360

600

780

936

Metalprecision7501,1251,5191,898

Total

1,279

2,104

3,061

4,292

Autoasa%oftotalrevenue2.1%4.1%6.5%7.5%

Source:Companydata,HSBCQianhaiSecuritiesestimates

Exhibit8.Revenuebreakdownbysegment

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

RMBm

2013201420152016201720182019202020212022e2023e2024e

FPCandPCBTouchpanelmoduleandLCM

LEDandmoduleTelecomequipmentandmetalprecision

Others

Source:Companydata,HSBCQianhaiSecuritiesestimates

Exhibit9.Revenuebreakdownbysegmentin2022e

Others

0%

LEDmodule

8%

Touchpanel

andLCD

module

17%

Source:Companydata,HSBCQianhaiSecuritiesestimates

Earningsrevisions

Makinggoodprogressonde-leveragingandcostreduction

Dongshan’snetprofitgrew22%y-o-yin2021,inlinewithmarketandourexpectations,mostlydueto:1)improvementofcreditimpairments,2)increaseofgovernmentsubsidiesin2021,whichwasRMB268mvsRMB209min2020,and3)decreaseofinterestexpenseofRMB193masaresultofdeleveraginginthelasttwoyears.

Despiteaflattishtoplinein1Q22(1Q21wasahighbaseduetothedelayedlaunchofiPhone12),DongshanreportedanetprofitofRMB364m,up49%y-o-y,beatingthemarketandourexpectations,attributabletostrongcostmeasureswithadministrativeexpensesdown22%y-o-y.

Wekeepour2022/23enetprofitforecastslargelyunchangeddespitedownwardrevisionstoourrevenueof10%/6%(duetomoreconservativeassumptiononnewFPCdesignwinsandslowerrevenuegrowthrateinMultek)aswerevisedownouroperatingexpenseassumptionsby23%/20%in2022/23e.Wealsointroduceour2024estimatesinthisnote.

5

Equities●ElectronicEquipment&Instruments15June2022

Exhibit10.Estimatechanges

RMBm_______2021a_______________2022e_______________2023e________2024e

EstimateActualDiff.OldNewDiff.OldNewDiff.New

Revenue

Interconnect(FPCandPCB)22,10820,495-7%25,91822,449-13%29,14126,649-9%29,932

LCDModule5,9315,156-13%5,9315,414-9%5,9315,684-4%5,684

LEDandModule2,5952,6040%2,9072,9190%3,1973,2110%3,532

Telecomandmetalprecision3,5273,427-3%3,7273,8333%4,1084,2203%4,337

Others

8511030%9512026%9513037%140

Total34,24631,793-7%38,57834,734-10%42,47339,894-6%43,625

Grossprofitmargin

Interconnect(FPCandPCB)16.6%15.5%-1.1ppt17.1%16.5%-0.6ppt17.2%16.2%-1.0ppt16.2%

LCDModule12.5%8.2%-4.3ppt12.5%8.2%-4.3ppt12.5%8.2%-4.3ppt8.2%

LEDandModule14.2%18.3%4.1ppt14.2%18.0%3.8ppt14.2%18.0%3.8ppt18.0%

Telecomandmetalprecision17.2%15.4%-1.8ppt17.2%15.5%-1.7ppt17.5%15.5%-2.0ppt15.5%

Others60.0%56.6%-3.4ppt60.0%57.0%-3.0ppt60.0%57.0%-3.0ppt57.0%

BlendedGPM15.9%14.7%-1.2ppt16.3%15.4%-0.9ppt16.4%15.3%-1.2ppt15.4%

Grossprofit

Interconnect(FPCandPCB)3,6703,176-13%4,4323,704-16%5,0124,317-14%4,849

LCDModule741421-43%741444-40%741466-37%466

LEDandModule36947729%41352527%45457827%636

Telecomandmetalprecision607529-13%641594-7%719654-9%672

Others

516222%576820%577430%80

Totalgrossprofit5,4374,665-14%6,2845,336-15%6,9846,089-13%6,703

Expenses

Salesexpenses582341-41%656382-42%722439-39%480

Administrativeexpenses836782-6%926868-6%1,019957-6%1,047

R&D1,1301,029-9%1,2341,111-10%1,3591,277-6%1,396

Assetandcreditimpairments320195-39%380230-39%400260-35%300

Financecosts567437-23%510274-46%454215-53%176

Totaloperatingexpenses3,4342,783-19%3,7062,866-23%3,9543,148-20%3,399

Non-operatingincome130261101%80182128%80200150%240

Netincome1,9081,862-2%2,3692,303-3%2,7732,724-2%3,072

EPS(diluted)1.121.09-2%1.391.35-3%1.621.59-2%1.80

Source:Companydata,HSBCQianhaiSecuritiesestimates

Wherewearedifferentfromconsensus

Aftertheserevisions,our2022-24enetprofitestimatesarebroadlyinlinewithWINDconsensus.

Valuationandrisks

WecontinuetousetheA-sharesmartphonesectoraverage2022ePEGof0.9x(unchanged)againstour2021-23eEPSCAGRof20.9%(previously2020-22eEPSCAGRof24.4%)tovaluethestock.Basedonour12-monthforwardEPSestimatesofRMB1.45(previouslyRMB1.36),wereviseourtargetpricetoRMB27.20(previouslyRMB30.00).

Valuationstillattractive:Dongshan’ssharepriceisdownc30%YTD(comparedtotheCSISWSElectronicsIndex,whichisalsodown30%),mostlyduetomarketconcernontheslowdowninconsumerelectronicsandShanghailockdown.However,wethinktheseconcernsareoverblownasAppleanditssupplychaincontinuetoshowresilience.

Thestockistradingata14x2022ePE,2SDbelowthemid-cyclePEandwellbelowtheindustry’saveragePEof20x.Wethinktheautobusinessisthenextgrowthdrivertowatchgoingforwardandthemarkethasnotfullypricedinthegrowthpotential;assuch,wereiterateourBuyrating,withourtargetpriceimplyingc46%upsidefromthecurrentshareprice.

6

Equities●ElectronicEquipment&Instruments15June2022

Exhibit11.12-monthforwardPEandnet

profitgrowthtrend(x)

140.0%

120.0%

+1STD

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

-20.0%

Mean

-1STD

50.0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.02017/01

2018/012019/012020/012021/012022/012023/012024/01

Exhibit12.12-monthforwardPBandROEtrend(x)

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.02017/01

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

2018/012019/012020/012021/012022/012023/012024/01

16.0%

14.0%

+1STD

Mean

-1STD

Source:Companydata,HSBCQianhaiSecuritiesSource:Companydata,HSBCQianhaiSecurities

Keydownsiderisks

令Competition.ShennanandWUSPrintedCircuitaremajorsuppliersinthehighfrequencytelecomPCBuniverse,andWuhanFingu,WuhanTatfookandCaiqinTechnologyaremajorsuppliersintheRFcomponentsmarket;weseecompetitionintensifyingonce5Gentersamaturestage.

令Appleorderflowslowdown.IftheFPCorderflowfromAppleslowsdownduetosluggishdemand,itmayhaveanegativeimpactonDongshan’srevenue.

令FXfluctuations.AsDongshanhasasignificantexposuretotheUSD,RMBappreciationmayhaveanegativeimpactonthecompany’sprofitability.

令Uncertaintyaboutgovernmentsubsidies.ThecompanyreceivedRMB268mingovernmentsubsidiesin2021.WebelievetheunpredictablenatureofgovernmentsubsidieswilllikelybringuncertaintytoDongshan’sbottomline.

7

120%

60%

50%

40%

30%

20%

10%

0%

-10%

100%

80%

60%

40%

20%

0%

-20%

Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22

CCLpriceindex(Jan.2016asbenchmark)LMECopperpriceEpoxyresinpriceGlassfibreprice

Equities●ElectronicEquipment&Instruments15June2022

ShengyiTechnology(600183CH,Buy,TPRMB28.10)

Tough2Q22eahead,CCLpriceunderpressure

WecontinuetoseeweaknessinShengyi’s2Q22eresultsasconsumerelectronicsandappliancedemandremainelusive,whichlikelytopushCCLASPintoafurtherdeclineofanadditional10%q-o-qin2Q22eaftera10%q-o-qdeclinein1Q22.

CCLpricetodecline10%in2Q22e

Wearealsoseeingcompetitionintensifyingaspeersarecuttingpricesonthehigh-endcategoriessuchasPanasonicMegtron6(M6)series,whichshoulddelayShengyi’sprogressonlocalsubstitution.

Negativeslargelypricedin,PCBsegmentprovidessupportonshareprice

However,aftera30%correctioninthesharepriceYTD(vs-30%fortheCSISWSElectronicsIndex),wethinkthesenegativesarelargelypricedin,as:1)we’vealreadyseendownwardrevisionstoconsensusinthelasttwomonths;2)Shengyi’sPCBsegment,whichaccountsfor25%oftotalrevenue,islikelytoseeastrongrecoverystarting2Q22einrevenueandGPMasitsnewcapacityisinramp-upmodeandcheaperCCLpricesshallsupportbetterprofitability.WeexpectShengyiElectronics(asubsidiary)tocontinuetogainshare(15%-20%)innewroundsof5GPCBbidding.

Exhibit13.CCLpriceindex

Exhibit14.Shengyi’sCCLASPandchangeforecast

140

120

100

80

60

40

20

0

RMB/sqm

2016201720182019202020212022e2023e2024e

ShengyiCCLASP(LHS)ASPchange(%,2016asbenchimark)

Source:Companydata,WIND,HSBCQianhaiSecuritiesSource:Companydata,HSBCQianhaiSecuritiesestimates

Exhibit15.LMEcopperprice,Shengyi’s,andKingboard’ssharepriceperformance

1200%

1000%

800%

600%

400%

200%

0%

80%

60%

40%

20%

0%

-20%

-40%

-60%

Shengyi(600183CH)sharepriceperformance(%,LHS)

Kingboard(1888HK)sharepriceperformance(%,LHS) LMECopperpriceperformance(%,RHS)

Source:Companydata,WIND,HSBCQianhaiSecurities

Exhibit16.Shengyi’sGPMchangeandLMEcopperpricetrend

12,000

10,000

8,000

6,000

4,000

2,000

-

1Q02

4Q02

3Q03

2Q04

1Q05

4Q05

3Q06

2Q07

1Q08

4Q08

3Q09

2Q10

1Q11

4Q11

3Q12

2Q13

1Q14

4Q14

3Q15

2Q16

1Q17

4Q17

3Q18

2Q19

1Q20

4Q20

3Q21

LMECopperpricepertonne(USD,LHS)GPMofShengyi(RHS)

Source:Companydata,WIND,HSBCQianhaiSecurities

35%

30%

25%

20%

15%

10%

5%

0%

8

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00

RMBm

Equities●ElectronicEquipment&Instruments15June2022

Exhibit17.Shengyicapacityand

utilisationrateforecast

160

140

120

100

80

60

40

20

0

msqm

20152016201720182019202020212022e2023e2024e

Shengyi'stotalCCLcapacityUtilizationrate

104%

102%

100%

98%

96%

94%

92%

90%

Exhibit18.Shengyirevenueandgrowthratetrendandforecast

200020022004200620082010201220142016201820202022e2024e

Shengyirevenuey-o-y

60%50%40%30%20%10%0%-10%-20%-30%-40%

Source:Companydata,HSBCQianhaiSecuritiesestimatesSource:Companydata,HSBCQianhaiSecurities

Exhibit19.Revisiontable

________2022e___________________2023e__________________2024e__________

RMBmOldNewDiff.OldNewDiff.OldNewDiff.

Revenue

CCL

13,836

13,362

-3%

14,476

13,758

-5%

14,476

13,845

-4%

PCB

4,651

4,651

0%

4,689

4,689

0%

4,900

4,900

0%

Other

866

866

0%

1,298

1,298

0%

1,947

1,947

0%

Totalrevenue

19,353

18,879

-2%

20,463

19,745

-4%

21,323

20,692

-3%

Grossprofitmargin

CCL

27.0%

25.0%

-2.0ppt

27.0%

26.0%

-1.0ppt

27.0%

27.0%

0.0ppt

PCB

24.0%

25.0%

1.0ppt

25.0%

25.0%

0.0ppt

25.0%

25.0%

0.0ppt

Other

64.7%

64.7%

0.0ppt

64.7%

64.7%

0.0ppt

64.7%

64.7%

0.0ppt

BlendedGM

28.0%

26.8%

-1.1ppt

28.9%

28.3%

-0.6ppt

30.0%

30.1%

0.1ppt

Grossprofit

CCL3,7363,340-11%3,9093,577-8%3,9093,738-4%

PCB1,1161,1634%1,1721,1720%1,2251,2250%

Other5605600%8408400%1,2601,2600%

Totalgrossprofit5,4125,063-6%5,9215,589-6%6,3946,223-3%

Operatingexpense

Businesstax114111-2%121116-4%126122-3%

Salesexpenses213198-7%215207-4%224217-3%

Administrativeexpenses852793-7%900869-4%938910-3%

R&D921850-8%974940-4%1,015985-3%

Assetandcreditimpairment1501500%1501500%130130