Recently, IDC's latest "IDC Global Big Data Spending Guide" predicts that the overall revenue of the global big data related hardware, software, and service market will reach $187.84 billion in 2020, a year-on-year increase of 3.1%. Among them, the overall revenue of China's big data related market will reach 10.42 billion US dollars, a year-on-year increase of 16%, and the growth rate will lead the global big data market. Faced with the rapid development of the IDC industry, the demand for core components such as PCB and copper foil is expected to be further released. As a supplier of the entire PCB industry chain, Chaohua Technology (securities code: 002288. SZ) is expected to use cutting-edge PCB and copper foil technology to dig gold in IDC's construction of the Deep Blue Sea.

According to China Merchants Research Report, from the perspective of IDC development stage, China's IDC development is still in a rough development stage mainly focused on new construction. The domestic IDC market growth rate is far higher than the global market, and there is still significant development space. From the perspective of global IDC proportion, the United States accounts for about 45%, China accounts for about 6%, and Japan accounts for about 8%; From the perspective of per capita computer room area, the United States is about 20 times that of China, while Japan is about 10 times that of China; From the perspective of bandwidth, China is about twice that of the United States and about 9 times that of Japan, with a huge contrast. This indirectly indicates that China has a large space for IDC development and will drive the accelerated development of upstream and downstream enterprises in the domestic IDC industry chain.

According to Prismark's prediction, the compound growth rate of IDC's use of PCB in the next five years is 5.8%, which is expected to bring 25.1 billion yuan in high-speed copper clad board demand; Copper foil, as an important raw material for copper clad laminates, accounts for 30% -50% of the cost of copper clad laminates, and will accompany the rapid growth of high-frequency and high-speed copper clad laminates. Chaohua Technology not only possesses advanced research and production technology for domestic copper foil, but also continues to increase copper foil research and development and expand production capacity in recent years, which is expected to enjoy the development dividend.

As a leading enterprise in the copper foil industry, Chaohua Technology focuses on the layout of the industrial chain and looks forward to increasing high-end production capacity. Since its establishment, Chaohua Technology has been engaged in the research and development, production, and sales of high-precision electronic copper foil, various types of copper clad plates and other electronic substrates, as well as printed circuit boards (PCBs). The company adheres to the "vertical integration" industrial chain development strategy and has established an integrated business main line from upstream copper foil, specialized wood pulp, drilling, PP sheets to midstream CCL and then downstream PCB. The company's current production capacity of copper foil is 12000 tons/year, and the production capacity of copper clad plates is 12 million sheets/year; The PCB production capacity is 7.4 million square meters per year.

With the rapid development of new infrastructure such as 5G and IDC, the company actively carries out forward-looking layout, increases high-end production capacity reserves, and formulates clear expansion plans for copper foil, CCL, PCB and other products, continuously releasing new production capacity. In 2019, the company successfully developed RTF copper foil for 5G communication and has completed shipment. In addition, the company continues to promote the research and development progress of high-end HDI copper foil, VLP copper foil, and HVLP copper foil, further enriching the products in the field of high-end electronic circuit copper foil. It is worth mentioning that the second phase of the company's high-precision electronic copper foil project with an annual production capacity of 8000 tons will add 8000 tons of copper foil production capacity. At that time, the company's copper foil production capacity will be increased