MIM technology using mold injection molding blanks, by enhancing the complexity of the mold to keep the cost constant, the higher the complexity of the product, the MIM process cost advantage is more obvious.MIM technology has the advantages of the conventional powder metallurgy process process, no cutting or less cutting, overcoming the traditional powder metallurgy process products of uneven material and the main disadvantages of the complex structure, suitable for large-scale production of small, precision and metal parts manufacturing with special requirements. Special requirements for the manufacture of metal parts.
MIM industry is in the first stage to the second and third stage of the conversion process, the logic of enterprise growth gradually changed from sales-driven to R & D and sales-driven dual-wheel drive. In the early stage of the domestic MIM industry’s core raw materials are mostly supplied by BASF, the model, weakening the impact of R & D for enterprise growth, enterprise growth is mainly driven by sales; two or three stages, new products such as foldable cell phone hinges, etc., the technical barriers are high, and the difficulty of research and development has increased greatly, R & D capability of MIM companies will be able to seize the first opportunity to upgrade and iterate in the product.
The global MIM market is growing steadily, and the domestic MIM market is expected to reach 23.5 billion yuan in 2026.
According to Maximize Market Research, the market size was $2.87 billion in 2018 and is expected to reach $6.92 billion in 2026, corresponding to a compound annual growth rate (CAGR) of 11.9% from 2019-2026. We assume that the domestic MIM industry market size in 2026 is expected to occupy 50% of the global market size, corresponding to a domestic market space of RMB 23.5 billion.
Europe and the United States market MIM downstream application market is the largest arms, automotive and medical industries.
The combined largest market for MIM in the European and American markets is industrial components, including pump housings, solenoids and fittings. Automotive components are the second largest market for MIM, accounting for 14% of global value, with a higher downstream share of European MIM. Consumer products are the third largest market, accounting for 11% of MIM sales, and these markets are dominated by Asia (cellular, consumer and computer parts).
Compared with Europe and the United States and other mature markets, the domestic MIM downstream application market is dominated by cell phones and smart wearable, military, medical and automotive industries still have a large penetration space. China’s MIM application market, cell phones accounted for 56%, smart wearable accounted for 12%, computers accounted for 8%, while medical, military and automotive accounted for less than 5%.
Harber Metal company belongs to the first tier in the domestic MIM industry.
MIM industry according to revenue can be divided into three competitive echelons: the first echelon is MIM enterprise revenue scale of more than 200 million yuan, the number of enterprises does not exceed 10, mainly including Foxconn Group, Taiwan Shengming Electronics, Precision Research Technology, Fuchs Hi-Tech, etc.; the second echelon is MIM enterprise revenue scale of 50 million to 200 million yuan, mainly for the domestic brand enterprise supporting MIM parts and components products; The third echelon of MIM enterprises with revenue scale below 50 million dollars.
From the current point of view, listed companies with financial advantages, scale advantages and R & D advantages for large-scale rapid delivery, industry concentration is expected to increase. At this stage, a small number of MIM enterprises already have the ability to independently prepare the feeder, and the autonomy of the enterprise’s feeder will become a trend in the future. Through the feed and mold development, further enhance the MIM products high complexity, high strength, exquisite appearance and other characteristics, MIM products in automotive manufacturing and medical equipment and other diversified fields is expected to continue to penetrate.
2.2 Folding screen cell phone to open the industry growth space
Folding screen as one of the important areas of MIM, is expected to pull the rapid growth of MIM demand. Currently folding screen cell phone high cost, poor screen durability and low yield, as the cost continues to reduce, the future of more Android phone manufacturers to join the folding screen cell phone camp, folding screen cell phone is expected to accelerate penetration. Folding screen organic is expected to pull MIM demand rapid growth.
The current folding screen cell phone penetration rate is low, the current Samsung and Huawei folding machine market share is high.
According to Counterpoint Research data, the global folding screen smartphone market in 2022 will grow 73% from 9 million last year to 16 million, and it is expected that by 2023 the folding screen phone will grow to 26 million units. According to Counterpoint’s Folding Screen Smartphone Tracker, June 2022, Samsung held the major market share for folding screen smartphones in the first half of 2022, accounting for 62 percent of the total market share; Huawei and OPPO were second and third. Samsung expects to aim to sell 10 million folding screen phones in 2022.
With the gradual maturation of the technology, the folding screen hinge MIM market scale is expected to expand, we expect the domestic folding screen hinge MIM market space of 7.8-130 billion.
Thanks to the joint promotion of cell phone manufacturers and supply chain manufacturers, the hinge design is rapidly maturing. The current folding screen cell phone start-up stage, most brand manufacturers choose to research and design their own hinge and handed over to South Korea or Taiwan suppliers OEM, such as Huawei Mate X2 hinge used through a special slide groove and pivot design can be seamlessly closed to maintain the folded screen at the same time to reduce the bending angle of the screen, in order to reduce the traces of the bending. Assuming that the hinge MIM stand-alone value chain for 300-500 yuan, according to Counterpoint Research data, the domestic folding screen hinge MIM market space is expected to be 7.8-130 billion, the future application potential.
3.1 Harber Metal company has a significant latecomer advantage, equity incentives show confidence
As a newcomer to the MIM industry, the company has a significant late-stage advantage. Harber Metal was founded in 2014, relative to peer companies, the company has advanced customization, automation equipment development capabilities, the company has a significant cost advantage, the latecomer advantage is outstanding.
The company’s automation has certain advantages, through independent research and development, equipment suppliers to assist in manufacturing, and ultimately to reach the automation of the whole process. At present, the company’s automation equipment has penetrated into the various processes, through the automation of the overall process system, will further enhance the yield and efficiency of the product, and effectively reduce product production costs.
The company adopts automated dimensional inspection equipment to replace manual labor and maintain the consistency of dimensional inspection. The company accelerates the intelligent transformation of all kinds of production equipment, on the basis of single-process automation to automate the process of continuous production, and ultimately achieve the automation of the whole process.
With the increasingly wide application of MIM products, the future of the company’s feeding autonomy will become a trend, the company already has the ability to independently prepare the feed. With the demand for more highly complex, high-precision, high-density, beautiful appearance of the MIM products also continue to emerge, companies need to prepare different ratios of feed according to the customer’s highly customized product requirements.
The company has independently developed the feeding material mixing technology, and the developed feeding material has good fluidity, reduces the molding pressure and temperature, and provides customers with customized MIM products.
The company has customer advantages. With good technical synergy, excellent product quality and high quality service, the company has formed stable partnership with Foxconn, Jabil Technology, Keppel Communications, Kaisheng Group, Leader Smart Manufacturing, Lixun Precision, Geer, etc., and its products are ultimately applied to domestic and international famous consumer electronics brands, and the business cooperation field is expanding in depth. In 2021, the company’s sales revenue to Apple and its designated EMS manufacturers accounted for 82.82% of the current operating income.
The Shandong Factory project will expand the production scale of existing MIM precision metal parts and molds in the field of consumer electronics, and at the same time add the production capacity of precision parts in the field of tools, precision parts in the field of automobiles, and precision parts in the field of medical treatment, so as to enrich the product structure and broaden the application fields of products.
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