Research on China Military Modular Power Supply Industry

News

0755-29665062

Certificate

Shenzhen KINRI Energy Technology Co.,Ltd.

Company News

Research on China Military Modular Power Supply Industry

Article Source：Future think tanks | Author：China Post Securities, Bao Xuebo | Issuing Time：2024.03.25

Research on China Military Modular Power Supply Industry: Increasing Electricity Consumption to Drive Demand Growth and Increasing Concentration of Production Expansion

1 module power supply: Significant modular advantages, high reliability to meet military needs

1.1 Power supply and its classification: Switching power supply is the main type of power supply, widely used

Power supply refers to a device that converts other forms of energy into electrical energy and provides power to the load. In a broad sense, power sources also include "power converters", which are devices that convert one specification of electrical energy (voltage, current) into another specification of electrical energy. They are the basis for the normal operation and voltage regulation of power electronic equipment. According to the 2022 China Power Supply Industry Yearbook, China's proportion in the global power supply market has steadily increased, and a group of enterprises with certain scale and core competitiveness have grown in segmented fields. At the same time, with the development of domestic new power systems, new energy, data centers, 5G and other industries, the domestic power supply industry is expected to grow rapidly.

According to the classification of the China Power Supply Society, power supplies can be divided into switch mode power supplies, UPS power supplies, linear power supplies, inverters, frequency converters, and other power supplies according to their functions; According to the conversion form, it can be divided into ACDC, DC-DC, DC-AC, AC-AC, etc.

The application fields of switch mode power supply are very extensive, including industrial automation control, military equipment, scientific research equipment, LED lighting, communication equipment, power equipment, medical equipment, etc. At present, except for situations where the ripple requirements for DC output voltage are extremely high, switch mode power supplies have completely replaced linear regulated power supplies. In 2020, the proportion of switch mode power supply products in China's power supply industry reached 55%.

1.2 Military modular power supply: higher reliability requirements, with advantages in microcircuits and thick film processes

1.2.1 Module power supply is developing rapidly with significant advantages

Modular power supplies, also known as power modules, refer to power converters that can be directly soldered onto printed circuit boards (PCBs). Currently, most modular power supplies on the market belong to the category of switching power supplies in terms of functionality, mainly DC/DC modular power supplies. The development of modular power supplies benefited from the emergence of power electronics technology in the mid-20th century. In 1955, American scientist Roger developed a self-excited oscillation push-pull DC converter using transistors, and proposed pulse width modulation (PWM) technology, creating an opportunity for the transition from traditional linear power sources to switching power sources; NASA was founded in 1958 and subsequently proposed the use of switching mode power supply (SMPS) to power rockets, greatly reducing their volume and weight. Since the 1960s, new switching devices have emerged, with switching frequencies reaching tens of kHz. With the emergence of IGBT, the output power range of switching power supplies has also become wider and wider; Over a decade later, research on switch mode power supplies in China began, and power supply products gradually began to be promoted; In the 1980s, high-power density DC/DC module power supplies with hard switching PWM fixed frequency control entered the market, and the operating frequency of module power supplies gradually increased to several hundred kHz or above; In the 21st century, new topologies and control methods are emerging endlessly, and device processes and packaging glue levels are also constantly improving. The development of modular power supplies is becoming more rapid. Modular power supplies package the components on the power supply in a modular manner, using high-density circuit and structural design to form smaller and higher power density power products. They can also conveniently build power systems according to specific needs, with advantages such as short design cycles, high reliability, and flexible application.

Modular power supplies have obvious advantages in size and high reliability, and are widely used in fields such as aerospace, national defense, military industry, and network communication. The market size continues to grow. According to data from the China Power Supply Society, the market size of China's modular power supply industry reached 10.338 billion yuan in 2020, a year-on-year increase of 20.35%.

1.2.2 Module power supply is developing towards low cost, miniaturization, high efficiency, digitization, and other directions

At present, with the continuous exploration of wide bandgap devices, especially silicon carbide and gallium nitride devices, the switching frequency of DC converters can reach the megahertz level, and their power density has also been greatly improved. Modular power supplies are showing a trend of high power density and miniaturization, while their costs are continuously decreasing.

The efficiency requirement of module power supply increases with the increase of power density. In terms of module power efficiency, due to the limitation of heat dissipation capacity, as the power density increases, the module power efficiency also needs to be improved. PSMA has provided a development plan for a 1/4 brick module power supply, which will further improve efficiency by using GaN devices with increased power.

Module power supply is developing towards digitalization. Compared with analog control, adopting digital control can simplify circuits, and control strategies and protection logic can be implemented through digital programming. With fewer peripheral circuits, functions can be achieved, making control more precise and flexible. This reduces the volume of module power supply, reduces device costs, and improves power density. Once control parameters and control strategies are changed, only program modifications are needed, which can improve research and development efficiency. In addition, standard brick power supplies provide convenience for both designers and users. Modular power supplies are mostly customized by users, and standardized modular power supplies, namely brick power supplies, mainly include full brick, half brick, 1/4 brick, 1/8 brick, etc. The standardization of modular power supplies involves not only electrical parameters such as input voltage level, output voltage, and output power, but also mechanical parameters such as size, volume, and pin definitions, providing convenience for both designers and users of modular power supplies.

1.2.3 Higher reliability requirements for military module power supply

Compared with the civilian field, the defense and military industry have higher requirements for the reliability of power supplies, often requiring the stability of power supply in various complex environments such as extreme temperature conditions and strong impact vibrations. Compared with similar civilian products in the market, military ceramic technology military products have higher requirements in terms of temperature applicability, temperature shock performance, impact resistance, and vibration reliability.

1.2.4 Micro circuit technology and thick film technology each have their own advantages

The modular power supply industry can be further divided into thick film process modular power supplies and microcircuit modular power supplies according to assembly processes. Among them, the thick film process module power supply usually uses ceramic substrates as the power circuit carrier, mainly used in aerospace and other fields that require extremely high performance requirements such as temperature and radiation resistance; Microcircuit module power supply, also known as PCB module power supply, uses PCB substrate as the circuit carrier. While ensuring the reliability of military products, it often has better electrical performance such as power density and efficiency, and is widely used in other military fields.

2. Requirement: Modular power supply is widely used for equipment secondary power supply, fully benefiting from the improvement of equipment installation and electrification level

2.1 Module power supply is widely used in equipment secondary power supply

At present, the power systems used in China's aerospace industry are mostly distributed structures, which have advantages over traditional centralized and modular structures such as high reliability, good fault tolerance, easy modularization and standardization, easy maintenance and expansion, and meeting complex terminal load requirements. The distributed power supply system mainly consists of a power generation system, a primary power supply, and a secondary power supply. The power generation system converts the initial energy into electrical energy, and the primary power supply converts the wide input voltage into a relatively stable DC voltage. After being regulated by the secondary power supply, it supplies power to the load.

Switching power supply is the core device in the circuit, and modular power supply has significant advantages. Switching power supplies are mainly used to convert different electrical energy specifications. When the power supply environment cannot meet the voltage and current requirements of a certain electronic device, switching power supplies can convert input electrical energy into the specifications required by the electronic device. Modular power supplies generally have standardized packaging dimensions and electrical interfaces, high individual power density, short design cycles, and are convenient for various combination applications. They can adapt to different application scenarios and voltage levels and are widely used as secondary power supplies for equipment power systems in aviation, aerospace, radar, and other fields.

(1) Aviation sector

Modern aviation power systems are gradually developing towards wide variable frequency AC power sources (VSVF) and high voltage DC power sources (HVDC). Large civil aircraft represented by Airbus A380 and Boeing 787 use variable frequency AC power systems, while F-22 and F-35 fighter jets use high-voltage DC power systems. The variable frequency AC power supply system has the advantages of simple structure, low cost, small size and light weight, and inherits the characteristics of the constant frequency AC power supply system. Its maturity is higher than that of the high-voltage DC power supply system, but it also has disadvantages such as adverse effects on the load due to wide frequency variation range, and complex distribution systems that are not conducive to comprehensive system design. The rated bus voltage of the high-voltage DC power supply system is 270V, which is obtained by rectifying a 115V/400Hz constant frequency three-phase AC power supply. Most electrical equipment on aircraft cannot work directly at the 270V bus voltage, so it is necessary to convert the 270V bus voltage into the voltage required by the load through a secondary power supply. Secondary power sources can be divided into three categories: 1) DC/DC, which converts 270V bus voltage into 28V DC power; 2) DC/DC, which converts 28V DC into low voltage DC power such as 3.3V, 5V, and 12V, can provide power for communication, control, and protection equipment on aircraft; 3) DC/AC converts the 270V DC bus voltage into a constant frequency AC voltage of 115V/400Hz.

(2) Aerospace field

Missiles often adopt a distributed power supply method, and the missile power supply system is usually composed of a primary power supply, a secondary power supply, and a power control circuit. A thermal battery is usually used as the primary power source, and a turbo generator can also be used; Secondary power sources generally include DC DC, DC AC, and AC DC converters; The power control circuit usually consists of an ignition circuit, a power output status detection circuit, a magazine power conversion circuit, and so on.

The widely used secondary power sources in missile systems are mainly DC to DC converters, which can be divided into two categories: DC/DC switching power supplies and linear power supplies. DC/DC switching power supply has high efficiency but high noise; Linear power sources have low noise and interference, but low efficiency and high heat generation. DC/DC switching power supply is more suitable for the volume and mass limitations of missiles. In the design of missile DC power supply, missile borne computers, digital circuits, and some power circuits use DC/DC switching power supply. DC/DC switching power supply has become the mainstream mode of DC power supply design in missile secondary power supply, largely replacing linear power supply.

(3) Radar equipment

The T/R module of active phased array radar requires the power supply to have characteristics such as low voltage and high current output, high conversion efficiency, and fast dynamic response. Meanwhile, due to various factors such as volume, quality, and working environment conditions, the power supply installed on the antenna array has strict requirements for power density and reliability. At present, the ground array power supply input is usually three-phase AC 380V, the airborne power supply input is DC 270V, and the output voltage is generally 8V-48V DC according to different load requirements. The power of a single array power supply component is generally 3kW-10kW. The module power supply in radar systems is mainly used for two types: secondary power supply and general power supply. The secondary power supply mainly supplies power to the T/R components of the antenna array, with an output of low voltage DC such as 5V-8V, and its front-end input is the primary power supply of the array (DC 8V-48V). The secondary power supply belongs to the low-voltage low-power module power supply. Universal power supply, due to its relatively small power (less than 1000W), generally uses single-phase AC power supply to provide the DC power required for the operation of electronic equipment in various radar subsystems.

2.2 High demand for multi factor driven module power supply and strong demand for domestically produced products

Driven by multiple factors such as the replenishment of domestic military equipment, the installation of new equipment, and the increase in value of new equipment, the demand for military module power supply is expected to increase significantly. With the increasing demand for "independent and controllable" equipment in the country, there is a strong demand for domestically produced products.

(1) There is still a significant gap in domestic equipment compared to military powers, and the replenishment of quantity drives demand growth

Taking aviation equipment as an example, compared to developed countries such as the United States, China has a relatively small number of military aircraft and a higher proportion of outdated models. There is an urgent need to supplement the number of military aircraft and upgrade military aircraft. According to World Air Forces 2023, there are currently 1570 fighter jets in mainland China. Regardless of the generational division of fighter jets, the total number of fighter jets in mainland China is only 57% of that in the United States. From the perspective of fighter aircraft composition, the United States has achieved all three generations or more of active fighter jets, with 493 active fourth generation aircraft, accounting for 22% of the total number of fighter jets (2230), and accelerating the installation of F-35 fourth generation fighter jets, with approximately 100 B21 bomber orders. There is still a significant gap between the scale of China's third-generation/third-generation half fighter jets and that of world air force powers. The fourth generation J-20 is only a small number of aircraft, and the proportion of second-generation aircraft is still 47%.

In terms of ships, China's third aircraft carrier has been launched, and the future fleet will increase the demand for ships. In addition, there is an increasing demand for early warning aircraft and new types of carrier based aircraft. On June 17, 2022, China's third aircraft carrier was launched, named the People's Liberation Army Navy Fujian Ship, with hull number 18. The Fujian aircraft carrier is the first domestically designed and built catapult type aircraft carrier in China. It adopts a straight and elongated flight deck, equipped with electromagnetic catapults and interception devices, and has a full load displacement of over 80000 tons. The launch of the Fujian ship reflects the further improvement of China's naval equipment strength.

In terms of aerospace, the increase in the number of fighter jets and warship platforms, as well as the demand for missile reserves, have driven the procurement of airborne carrier based missiles. China has installed a large number of various types of combat aircraft and warships, and the demand for airborne carrier based missiles is also increasing. Fighter planes can generally carry around 10 missiles, while destroyers typically have dozens to hundreds of vertical launch units. Considering the need for ammunition reserves and consumption, it is expected that the growth rate of the demand for ammunition on fighter and battleship platforms will not be lower than that of fighter and battleship platforms.

(2) The demand for new equipment installation is strong, and the level of equipment electrification is constantly improving

In terms of aviation, the fourth generation main fighter jets such as the J-20 may be in a stage of increasing production capacity, with experience accumulation shortening the equipment development cycle and the possibility of new military aircraft being finalized and mass-produced. The J-20 fighter jet is a new generation stealth fighter independently developed by China, which made its first flight in January 2011. Referring to the process of the first flight of the US F-35 fighter jet in 2006 and the delivery of the first F-35 fighter jet to the Air Force in 2011 five years later, and the continuous increase in production in recent years, it is expected that China's main fighter jets such as the J-20 are currently in a stage of increasing production capacity. The J-20 has enabled China's aviation industry's research and development capabilities to leap from the third generation to the fourth generation, and its mature experience accumulation is expected to shorten the development cycle of China's new fighter jets.

In terms of aerospace, the demand for updates and replacements drives the procurement of new and standardized equipment. In the 70th anniversary parade of the National Day in 2019, nearly 40% of the new weapons and equipment made their debut. Among them, weapons and equipment such as the Dongfeng-17 conventional missile, the Changjian-100 cruise missile, and the Dongfeng-41 nuclear missile were all made their debut, fully reflecting China's independent innovation ability in national defense scientific research. At the 2021 Zhuhai Air Show, dozens of aerospace technology and industrial equipment made their debut, and the number of exhibits exhibited for the first time reached the highest level in history. The continuous upgrading and replacement of missile weapons will drive the procurement of new models of equipment. In terms of value, the level of equipment electrification is constantly improving, and the value of upgrades and replacements is significantly increasing. From the cost perspective of fighter jets, the proportion of the avionics system of the first and second generation fighter jets to the single machine cost is usually 10% -20%, while the proportion of the third generation fighter jets has increased to 30% -35%, and the proportion of the avionics system of the fourth generation fighter jets has exceeded 40%. The proportion of the avionics system of electronic fighter jets, early warning aircraft, and reconnaissance aircraft is even higher. With the application of emerging technologies in various fields such as display systems, radar communication, navigation positioning, state perception, and flight management in the future, advanced avionics systems will play a more important role in assisting fighter jets in carrying out patrol, detection, interception, attack and other combat tasks. The overall electrification level of aviation equipment will continue to improve. The upgrading and upgrading of aviation equipment, as well as the development of electrification trends, will drive a significant increase in the demand for integrated electronic equipment and supporting power sources.

(3) The demand for "independent and controllable" is increasing, and there is a strong demand for domestically produced products nationwide

There is a strong demand for domestically produced module power supplies nationwide, and currently the proportion of domestically produced products is still relatively low. In recent years, the country's demand for "independent and controllable" defense and military weapons and equipment has been continuously increasing, and the localization process of the military industry supporting industry chain is in a critical stage of transformation. Due to the high reliability requirements in the field of national defense and military industry, supporting products usually need to go through a long period of pre research, trial production, testing, and finalization before entering the mass supply stage. Therefore, after downstream customers demand nationwide production, a certain import time is required before bulk supply. Since downstream customers gradually requested nationwide production orders in 2021, the current nationwide production products in the industry are mainly in the stage of small batch sample supply. Taking Juntao Technology as an example, since 2021, downstream customer development projects in which Juntao Technology has participated have gradually put forward orders for nationwide production of modular power supplies. In Q1 to Q3 of 2021 and 2022, Juntao Technology's national sales revenue of industrial and chemical products was 1.24 million yuan and 4.11 million yuan, respectively, accounting for 0.72% and 2.59% of the revenue. Aerospace Chaoyang Power has accelerated independent research and development, and has completed the development of over a hundred domestically produced modular power supplies as substitutes. In the future, as domestically produced products gradually mature and enter the mass production stage, it is expected that domestically produced products will grow rapidly.

3. Supply: The supply capacity of domestic manufacturers continues to improve, and there are development opportunities in the upstream and midstream of the industrial chain

3.1 "Domestic substitution": The market share of domestic enterprises is gradually increasing, and "independent and controllable" national industrialization

The upstream of the booming power supply industry chain mainly consists of raw material suppliers such as electronic components (including control chips and power devices), PCB boards, hardware, and structural components; The midstream of the power supply industry chain mainly consists of power supply manufacturers who possess different levels of professional technology and production capabilities; The downstream of the power supply industry chain mainly consists of equipment manufacturers in various application fields, including aerospace, military, railway, communication, industrial control, power, new energy and other industry enterprises. As the core component of power electronic equipment, the development of the power supply industry is greatly driven by the demand of downstream power electronics industry, especially in recent years, the application fields of power electronics technology have continued to increase, and the technological iteration and upgrading of related industries have greatly promoted the development of the power supply industry.

Research on DC/DC module power supplies started earlier in foreign countries, with mainstream suppliers including Vicor from the United States, Interpoint from the United States, SynQor from the United States, TRACO from Switzerland, GAIA from France, ERICSSON from Sweden, and LAMBDA from Japan.

In 2022, Vicor's revenue reached $399 million and net profit was $25.45 million. Vicor's exports to Chinese Mainland and Hong Kong reached the peak in recent years in 2018, about US $109 million. In 2021, Vicor's total exports to China and Hong Kong were approximately 98.7 million US dollars, accounting for approximately 27.5% of the total revenue for that year. In 2022, Vicor's total exports to China and Hong Kong were approximately $75.19 million, a decrease of 24% year-on-year.

The domestic power supply industry started relatively late, with relatively backward technology and processes. In addition, the aviation, aerospace, and military industries have higher requirements for the performance and reliability of power products. In the past, the market was mainly dominated by international brands, including Vicor and Interpoint in the United States. After years of research and development investment, domestic manufacturers have developed rapidly. There are 43 and 24 high reliability military grade product suppliers in China, including Xinlei Energy, Zhenhua Micro, and Juntao Technology.

As mentioned earlier, the proportion of domestically produced military modular power supplies is still relatively low, and there are still many imported power devices and control chips used in modular power supplies. Juntao Technology's 2023 prospectus disclosed that its production of power devices, control chips, and sealing adhesives is mainly met through overseas imports, but the production of domestically produced products is rapidly increasing.

The electronic component suppliers disclosed in the 2017 prospectus of Xinlei Energy include Wenye Technology Co., Ltd., WEIKENG INTERNATIONAL CO., LTD, Shenzhen Maorun Electronics Co., Ltd., and Xinye Electronics (Shenzhen) Co., Ltd. Wenye Technology's main agency products include TI, ADI, ST, Altera, RENESAS, etc; Weijian International acts as an agent to sell electronic components from world-renowned brands such as Infineon, Infineon+Cypress, Lattice, NXP, Western Digital, SanDisk, etc; Xinye Electronics distributes TI and other branded products. The requirement for "independent and controllable" has been raised, and it is recommended to pay attention to investment opportunities for control chip and power device manufacturers driven by mass production of domestically produced products. The Xinleineng IC R&D Center has developed multiple series of power management integrated circuits, laying a solid foundation for the localization of the company's power products. According to the 2022 semi annual report of Aerospace Changfeng, the company has accelerated its independent research and development and has completed the development of hundreds of domestically produced modular power supplies as substitutes. According to the 2022 private placement prospectus of Zhenhua Technology, the company has independently developed ZHM5025A active clamp PWM chip, ZHM5035C half bridge control PWM chip, and ZHM5032 dual path PWM control chip. Kaiweite's prospectus reveals that in 2018, it completed the research and mass production of PWM control ICs for high reliability applications. In 2021, there was a significant increase in customer demand for its power ICs. With the increasing demand for "independent and controllable", domestic PWM controllers and domestically produced modular power supply products are expected to fully benefit.

3.2 Top enterprises are expanding production, and market concentration is expected to increase

Top enterprises are expanding production, and market concentration is expected to increase. The current modular power supply market is relatively scattered, and New Lei Neng has disclosed that its market share is less than 10%. The military modular power supply market is gradually concentrating towards large-scale, high-quality, and strong comprehensive capabilities. With strong demand and broad prospects, leading companies in the industry such as Xinleineng and Zhenhua Micro are expanding their production. With the increase in production capacity of top manufacturers, market concentration is expected to increase. In 2022, Xinlei Energy will raise 1.581 billion yuan in private placement funds for special power expansion projects, high reliability SiP power microsystem product industrialization projects, 5G communication and server power expansion projects, research and development center construction projects, and supplementary working capital. After the project is completed and put into operation, the production capacity of Xinlei Energy will be significantly increased. The production capacity of special power products, communication and network products, and SiP power microsystem products will increase by 500000, 2, and 125000 units (10000 pieces), respectively, with an increase of 70%, 72%, and 477%.

In October 2022, Xinlei Energy's batch production capacity continued to climb, and the Beijing headquarters aims to achieve a 30% -50% growth in production capacity by 2022; The production capacity growth of Shenzhen Leineng is mainly due to the gradual contribution after the private placement project is put into use. The main equipment has been basically in place and equipment debugging has begun. It is expected to be put into use by the end of 2022 or the beginning of 2023. Zhenhua Technology plans to raise no more than 2.518 billion yuan for capacity enhancement and production line construction. Among them, 720 million yuan is planned to be used for the hybrid integrated circuit flexible intelligent manufacturing capacity improvement project. The project will be implemented by Zhenhua Micro, with a construction period of 36 months. When completed and put into production, it will form a production capacity of 170000 thick film hybrid integrated circuits per year, 350000 microcircuit modules per year, 100000 thin film devices and circuits per year, and SIP system level packaging, and a detection capacity of 1.2 million units per year. In March 2023, Zhenhua Technology announced that its private placement project had been accepted by the Shenzhen Stock Exchange.

Aerospace Changfeng, the parent company of Aerospace Chaoyang Power, has also released a private placement plan, intending to raise no more than 325 million yuan for product development and production capacity improvement in the power, electronic information, and security technology sectors. In terms of power supply, the plan is to build a "Domestic High Power Density Module Power Supply Development and Production Capacity Enhancement Project" and an "Energy Storage Power Supply Verification Capacity Construction Project". In October 2022, Aerospace Changfeng announced that its application for private placement was approved by the China Securities Regulatory Commission.

The IPO fundraising project of Juntao Technology plans to raise 520 million yuan for the industrialization base project of high power density, high efficiency, and high reliability power modules, as well as the construction project of research and development centers, and to supplement working capital. Among them, the total investment for the industrialization base project of high power density, high efficiency, and high reliability power module is 305 million yuan, with a planned construction period of 36 months. The project is fully put into operation, and it is expected to increase annual sales revenue by 547 million yuan.

Tonghe Technology's 2021 private placement project will also expand its power supply capacity. The total amount of funds raised by Tonghe Technology is 250 million yuan, of which 195 million yuan is planned to be used for the industrialization project of multifunctional military power supply based on the localization of power modules. The project is jointly implemented by Shaanxi Tonghe and Huowei Power, wholly-owned subsidiaries of Tonghe Technology, with a construction period of 24 months. After completion, it is expected to form an annual production capacity of 14000 low-power DC/DC power modules, 5000 high-power DC/DC power modules, 5000 three-phase power factor correction modules, and 5000 multi-functional domestically produced military power supplies, effectively promoting the further development of the company's military power supply business.

3.3 Raw materials are the main cost for manufacturers, with obvious characteristics of high gross profit margin and high R&D investment

Military power supplies require high reliability, with higher unit prices and gross profit margins. There are various types and application fields of modular power supplies, resulting in significant price differences. From the perspective of the average price of products from manufacturers, the average price of products in the special field of Xinleineng is around 2000 yuan/unit, while the average price of products in fields such as communication and railways is around 200 yuan/unit. The average price of Juntao Technology's modular power supply products is around 1400 yuan/unit, while its power system products, as downstream of modular power supply, can be directly used for equipment power supply, with a higher unit price. In recent years, the average price has been above 10000 yuan/unit. In terms of gross profit margin, the gross profit margin of New Lei Neng's special field products is around 60%, and the gross profit margin of products in the communication and network fields is around 30%; In 2021, the gross profit margin of Juntao Technology's modular power products was 80%, and the gross profit margin of the power system was 57%.

In the production of modular power supplies, raw materials are the main cost. From 2019 to 2021, the cost rate of new Lei energy materials was around 35%. In 2019 and 2020, the material cost rate of Juntao Technology was between 20% and 25%. In 2020, Juntao Technology's SMT SMT assembly line was completed and put into operation, and the procurement of customized PCBA outsourced parts was switched to self-produced. The material cost rate began to decrease, and in 2021, the material cost rate was only 12%.

Upstream raw material suppliers in the modular power supply industry chain provide electronic components such as control chips, power devices, transformers, and PCB boards. In the raw material cost composition of power supply manufacturers, taking the raw material procurement of New Lei Neng as an example, the proportion of electronic component procurement amount is about 50%, and the proportion of circuit substrate, magnetic components and supporting materials, hardware/structural components/connectors procurement amount is all between 10% and 15%.

In 2021, in the procurement of raw materials by Juntao Technology, the proportion of electronic component procurement amount was 63%, while the proportion of PCB board, hardware, and structural component procurement amount was 13% and 11%, respectively.

Military power products have high gross profit margins and also have high research and development investment. In 2021, the gross profit margins of Xinlei Energy and Juntao Technology were 47.28% and 78.17%, respectively; The R&D expense rates are 13.57% and 15.47%, respectively. In terms of net profit margin, Zhenhua Micro, Juntao Technology, and Shenghua Power all had a net profit margin of over 30% in 2021, while Aerospace Chaoyang Power had a net profit margin of about 29%. New Lei Neng, Hongwei Electronics, and Xi'an Huowei had a net profit margin of around 20%.

4. Military module power supply manufacturers

Modular power supplies have higher power density and reliability, with significant military advantages. Driven by multiple factors such as the replenishment of domestic military equipment, the installation of new equipment, and the increase in value of new equipment, the demand for military module power supply is expected to increase significantly. In addition, the military module power supply market is gradually concentrating towards large-scale, high-quality, and strong comprehensive capabilities. With the increase in production capacity of leading manufacturers, the market concentration is expected to increase.

4.1 New Thunder Energy

Xinleineng was founded in 1997 and is an important power supplier in the fields of communication, aviation, aerospace, and shipbuilding. Its products include power micro modules, modular power supplies, customized power supplies, high-power power supplies, and power supply and distribution systems. Power micro module is a device with power management integrated circuits as the core, integrating active components, passive components, and other circuits. It adopts semiconductor integrated circuit packaging forms (such as SOIC, DIP, BGA, etc.) and has complete power converter functions. It has the characteristics of small size, high reliability, and easy installation and use. It is widely used in fields that require high power reliability, such as aviation, aerospace, ships, railways, power, etc., such as airborne signal systems, driver controllers, isolated signal transmission systems, CAN bus power supply, servo motor systems, FPGA/CPLD power supply, DSP power supply, CPU power supply, etc. Modular power supply is mainly used in fields such as aviation, aerospace, ships, railways, and power that require high reliability of power supply, such as distributed power systems, phased array radars, computers, navigation, wireless communication, optical communication, network equipment, databases, locomotive signal systems, railway communication systems, train monitoring systems, driver controllers, information display screens, and other application scenarios.

Customized power supply refers to a power supply specially designed and manufactured according to specific customer requirements, such as electrical performance indicators and structural requirements. It is mainly used in communication, aviation, aerospace, ships, railways, power and other high reliability application fields. High power power supply and distribution power supply system refers to a high-power power supply and distribution power supply system that converts the output AC voltage of the power grid and AC generator into DC power. It is widely used in the fields of communication, railways, ships, and power.

In recent years, Xinlei Energy's revenue and profits have grown rapidly, and its profitability has continued to improve. In 2021, Xinlei Energy achieved a revenue of 1.478 billion yuan, a year-on-year increase of 75%, a gross profit margin of 47.28%, a net profit margin of 19.84%, and a net profit attributable to the parent company of 274 million yuan, a year-on-year increase of 122%. In terms of product structure, in 2021, special fields such as aviation, aerospace, and shipbuilding contributed 880 million yuan in revenue to New Lei Energy, accounting for 60%, and 536 million yuan in gross profit, accounting for 77%.

4.2 Zhenhua Micro

Shenzhen Zhenhua Microelectronics Co., Ltd. was established in 1994 and is controlled by Zhenhua Technology, with a shareholding ratio of 87.53%. Zhenhua Micro is committed to the research and manufacturing of highly reliable thick film hybrid integrated circuits and complete systems. Its main products include DC/DC converters, AC/DC converters, power components, power filters, surge suppressors, power maintenance modules, motor drivers, signal circuits, etc. It is a national high-tech enterprise and one of the top 100 electronic components enterprises in China. It has four provincial and municipal technology centers, including Guangdong Province Hybrid Integrated Circuit Engineering Technology Center, as well as testing centers recognized by CNAS and DILAC.

Zhenhua Micro Anti Surge DC/DC Converters include ZVCH series, ZSA28S/DV series, ZHF28S/D/TV series, ZTR28S/DV series, ZWR28T series, ZVHE series, ZVFL series, ZSA28S/D series, ZHF28S/D/T series, and ZTR28S/D/T series. They can be interchanged with VPT's DVCH series, DVHF series, DVSA series, DVTR series, DVHE series, DVFL series, as well as Interpoint's MCH series, MWR series, MSA series, MHF series, and ZTR series products. The ultra wide input surge resistant DC/DC converter includes the ZHDC28XR/7W/15W/30W series, MVXR100 series, and MVXR series, which are compatible with VPT's VXR7-2800 series, VXR15-2800 series, VXR100-2800S series, and VXR series.

Zhenhua Micro's profitability has significantly improved. In 2021, the net profit margin of Zhenhua Micro reached 39.12%, an increase of 33.37pcs compared to the net profit margin of 5.75% in 2017. Benefiting from the continuous growth of sales revenue and significant improvement in profitability, Zhenhua Micro achieved a net profit of 256 million yuan in 2021, a year-on-year increase of 100%. In H1 2022, Zhenhua Micro achieved a net profit of 210 million yuan, a year-on-year increase of 81%.

4.3 Military Ceramic Technology

Founded in 2011, Juntao Technology is a high-tech enterprise dedicated to the research and development, production, and sales of military power supply products with high power density, high efficiency, and high reliability. Juntao Technology's products mainly include module power supplies, power systems, and other power related products. Among them, module power supplies mainly include DC-DC standard module power supplies, DC-DC micro power module power supplies, DC-DC non isolated module power supplies, AC-DC module power supplies, etc; The power system is the downstream form of modular power supply, mainly including standard power components and customized power systems, which can be directly used to power equipment; Other power related products mainly include auxiliary circuit modules required for building power systems, as well as power production and testing related equipment.

The downstream customers of Juntao Technology mainly include enterprises and research institutes under major central state-owned military industrial groups in China. In 2021, Juntao Technology achieved a revenue of 172 million yuan, a year-on-year increase of 87%, and a net profit attributable to the parent company of 60 million yuan, a year-on-year increase of 277%. Juntao Technology has strong profitability, with a gross profit margin of 78.17% and a net profit margin of 34.15% in 2021.

4.4 Aerospace Chaoyang Power Supply

Aerospace Changfeng Chaoyang Power Supply Co., Ltd. is a wholly-owned subsidiary of China Aerospace Science and Industry Group. The predecessor of Aerospace Chaoyang Power Supply was Chaoyang Power Supply Co., Ltd., which mainly developed and produced four major system products: modular power supply, individual power supply, bus power supply, and power supply system. It has a total of 166 national patents with independent intellectual property rights. The main business of Aerospace Chaoyang Power is the research and development, production, and sales of modular power supplies, integrated power supplies, and other products. Aerospace Chaoyang Power produces over 30 series of DC modules, regulated power supplies, constant current power supplies, pulse power supplies, filters and other power and power related products, widely used in missile power supply, launch control, radar power supply, ships/submarines, aircraft ground start, railway/EMU locomotives and other military and industrial civilian products. Over the years, Aerospace Chaoyang Power has undertaken and participated in the research and mass production of power supplies for hundreds of key weapon equipment models and multiple major civil projects in China. The product quality is stable and reliable, and has been recognized by a large number of customers.

The performance of Aerospace Chaoyang Power has steadily increased, but in 2022, its performance has declined due to the impact of the epidemic. In recent years, the revenue scale of Aerospace Chaoyang Power has steadily increased, with a year-on-year growth rate of over 10% from 2018 to 2021. In 2021, Aerospace Chaoyang Power achieved a revenue of 358 million yuan, a year-on-year increase of 12%. In 2022H1, due to the impact of the COVID-19, logistics and transportation in some parts of China were greatly limited, and power products could not be delivered smoothly. Aerospace Chaoyang Power realized an operating revenue of 115 million yuan, a year-on-year decrease of 24%, and a net profit of 12.93 million yuan, a year-on-year decrease of 68%. From the perspective of profitability, the net profit margin of Aerospace Chaoyang Power has steadily increased in recent years, but has declined slightly in 2022 due to the impact of the epidemic. In 2021, the net profit margin of Aerospace Chaoyang Power reached 28.93%, an increase of 8.71 pcs compared to 2017. In 2022H1, as the income scale of Aerospace Chaoyang Power Supply declined due to the impact of the COVID-19, the level of net interest rate declined year-on-year.

4.5 Sublimation power supply

Sichuan Shenghua Power Technology Co., Ltd. was established in 2011 and was acquired by Ganhua Science and Technology as its wholly-owned subsidiary in 2018. Shenghua Power specializes in the research and development, production, and sales of high-end DC/DC, AC/DC and other power products. The power products developed and produced have reached the leading level at home and abroad, with high reliability, ultra high power, high efficiency, high-voltage input, wide range, and multi-channel output characteristics. Shenghua Power Supply offers two main categories of products: modular power supply systems and customized power supply systems, mainly serving various weapon platforms such as airborne, shipborne, and missile borne. Its main customers include well-known domestic military enterprises, military research institutes, and military factories. Shenghua Power is a national high-tech enterprise with complete military industry qualifications. It has been selected as one of the third batch of specialized, refined, and new "Little Giant" enterprises by the Ministry of Industry and Information Technology of China, and has been recognized as the Sichuan Provincial Enterprise Technology Center. In recent years, the revenue of Shenghua Power has maintained growth, but its profitability has declined. In 2021, Shenghua Power achieved a revenue of 191 million yuan, a year-on-year increase of 19%, and a net profit attributable to the parent company of 65 million yuan, a year-on-year decrease of 6%. The net profit margin was 33.84%, a year-on-year decrease of 8.91 pcts.

4.6 Macroelectronics and Microelectronics

Hongwei Electronics is a subsidiary of Zhuzhou Hongda Electronics Co., Ltd., formerly known as the Microelectronics Division. Founded in 2014, the company specializes in researching, developing, producing, and selling modular power supplies and related component products. Its products are completely independently designed, produced, tested, and screened, with one thick film hybrid integrated circuit (implementing the GJB2438B-2017 standard production line) and multiple microcircuit module (SJ20668-1998) production lines. It has a professional routine environmental testing laboratory and can independently complete all screening tests from design to delivery. The products have been widely used in more than 600 customers such as aerospace, aviation, shipbuilding, weapons, electronics, etc.

In 2021, Hongwei Electronics achieved a revenue of 160 million yuan, a year-on-year increase of 113%, and a net profit of 32 million yuan, a year-on-year increase of 53%.

4.7 Huayao Electronics

Hefei Huayao Electronics Industry Co., Ltd. is a subsidiary of Sichuang Electronics and was established in 1992. It focuses on the research, development, production, and sales of power supply products. With years of accumulation in key power supply technologies and an efficient team that dares to innovate and forge ahead, we have established high-quality partnerships with multiple Fortune 500 companies and have a high brand awareness and reputation in the industry. Our power supply products are sold to various parts of the world, such as the United States and Europe. Huayao Electronics focuses on the electricity conversion needs of the three segmented markets of "national defense equipment, industrial control, and new energy vehicles", and develops modular power supplies with a 100% localization rate, which are widely used in the fields of national defense equipment, industrial control, and new energy vehicles. In 2021, Huayao Electronics strengthened its customer relationship in the field of new energy vehicles and delivered over 10000 units of in vehicle power products throughout the year.

Huayao Electronics has maintained stable revenue and profits in recent years. In recent years, the revenue of Huayao Electronics has been basically between 500 to 600 million yuan, with a net profit margin of around 9%, and the revenue and profit have remained stable. In 2021, Huayao Electronics achieved a revenue of 532 million yuan, a year-on-year increase of 10%, and a net profit of 45 million yuan, a year-on-year increase of 5%.

4.8 Xi'an Huowei

Huowei Power was established in 2010, integrating the research and development, production, sales, and service of modular power supplies and customized power supplies. Through continuous investment in high-performance and high reliability power products, it has become one of the main power suppliers in the fields of aerospace, aviation, shipbuilding, and weapons. The company's products include universal modules, component power supplies, intelligent chassis power supplies, high-power power supplies, etc. The products are widely used in fields such as missile borne, vehicle mounted, radar, ships, airborne, railway, ground systems, etc. Huowei Power focuses on the direction of customized military power supplies, relying on the development and industrialization projects of low-power DC/DC module power supplies, high-power DC/DC module power supplies, three-phase power factor correction modules, and multi-functional domestically produced military power supplies, actively building product competitiveness. As one of the first manufacturers to launch domestic military products, the company's military power supply products are at the forefront of the industry in terms of localization. In 2021, Xi'an Huowei achieved a revenue of 142 million yuan, a net profit of 28 million yuan, and a net profit margin of 19.68%.

4.9 Di Saiqi Zheng

Beijing Desai Qizheng Technology Co., Ltd., formerly known as Beijing Desai General Technology Research Institute, is one of the earliest professional power supply manufacturers in China to independently develop, design, scale up production, and provide engineering services for modular power supplies. It was acquired by a listed company, Power Source, in 2006. Desaichi has research and development centers in Beijing, Shenzhen, and Xi'an, with a production base of 11000 square meters and a total of about 400 employees, as well as over 100 technical research and development personnel. The company's main products include DC-DC power converters, AC-DC power converters, DC-AC inverters, EMI filters, and other product types. Currently, there are dozens of product series with over 1700 mature mass production specifications. The company's products are widely used in communication, network, railway signal, railway locomotive, finance, military industry, LED display, power, industrial control and other systems and fields. In 2020, Dieselqi achieved a revenue of 206 million yuan and a net profit of 12.44 million yuan; In 2021, Diesel is achieving a net profit of 4.11 million yuan.

4.10 Luoyang Longsheng

Luoyang Longsheng Technology Co., Ltd. was established in 1996 and is a state-owned wholly-owned subsidiary of the Luoyang Electrooptical Equipment Research Institute of China Aviation Industry Corporation. Luoyang Longsheng specializes in the design, development, production, and service of various power supply products, gradually forming four professional directions: customized power supply, modular power supply, standard power supply, and system power supply. It also acts as an agent to sell module power supplies from world-renowned brands such as Vicor, GAIA, and COSEL. The company currently has more than 360 employees and possesses a complete set of military product production and service qualifications. It has an independent research and development, production, debugging, and environmental testing center, as well as a complete trial and delivery production line. The total area covers 8000 square meters, and the annual production capacity exceeds 20000 sets. At present, we have nearly 10 series of products with advantages and characteristics applied in multiple fields such as aerospace, aviation, weapons, ships, and communication. We continue to provide tens of thousands of sets of power products for more than 500 users and multiple key projects, and have received unanimous praise from users in various fields.

(This article is for reference only and does not represent any investment advice from us. If you need to use relevant information, please refer to the original report.)

Back List

SHENZHEN KINRI ENERGY

Support Hotline

Home

About Us

Company Profile

R&D Center

Quality Management

Manufacturing Center

Coporate Culture

Organization

Factory View

Products

High Power Battery Charger

Customized Open Frame Power Supply

Military Power Supply

Switching Power Supply

Consumer Charger

Medical Power Supply

Desktop Power Adapter

Plug-in Power Adapter

EV Charging Station

Knowledge

Qualification

News

Company News

Exhibitions

Service

Submit Message

Customer Service

Download

Contact Us

Join Us

Job Information

Talent Concept

News

Certificate

Research on China Military Modular Power Supply Industry