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PCB Supply Chain May Be Affected

Mobile phone maker ,HTC continues to have bad news, in addition to flash down, Microsoft WindowRT is not included into HTC, HTC's related PCB industry supply chain in Taiwan, supplier of hard board ,Yaohua (2367), Yan Xing (3037), soft-board supplier, Ka Luen Yick (6153), the law wins (3354), also suffer from fear of spread at Q1 and Q3. The suppliers of printed circuit boards in the upstream for HTC includes the U.S. soft board manufacturer, MFLEX and 5-6 domestic manufacturers, which MFLEX also recently expected to reduce revenues from Aprl to June ,it is mainly because many of the latest projects are still in the initial stage.As for the domestic manufacturers, Yaohua offers hard board products for HTC,in the past accounted for 30% of Yaohua phone boards, which is its largest customer, but recently this proportion has been reduced to less than 3% of the level, so the HTC lightning down the fiscal measurements have a certain influence on the Yaohua, some have been reflected in the performance of Yaohua at Q2 performance,in April Yaohua's consolidated revenue is 860 million yuan, corporate estimated from May to June the revenue would fall to 7.5-8 billion. In the June 6, the HTC reduced the financial forecast, revenue target is reduced by 13%, mainly because European sales are far than expected, plus a one-time mention column last year. In addition to flash down the earnings forecast, recently it is said that Microsoft's next-generation system, WindowsRT doest not include HTC.

    
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