Derun Electronics directional add-on into the high-end connector

Home appliance connectors have always been the traditional flagship product of Derun Electronics (002055, stock bar), but its low gross profit margin also limits the company's development potential. After years of technical reserves and market research, Derun Electronics is preparing to invest heavily in high-end connectors. The company plans to send additional funds of 600 million yuan to enter the market of computer CPU connectors and DDR connectors, automotive connectors, LED connectors and so on. Qiu Weimin, the company's vice chairman, said that with the launch of these projects, Derun Electronics will enter the fast lane of development since its listing.
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There are 5 fundraising projects in this time, and there are 2 projects related to computer connectors. Among them, it is planned to invest 150 million yuan to develop computer CPU connectors. This product is mainly for INTEL's new generation notebook SOCKET-rPGA989. As the most advanced product of the connector, the main suppliers are Tyco Electronics and Foxconn. After years of research and development and continuous improvement, Derun Electronics has mastered the unique production technology in this field, and its production cost is obviously superior to its peers. After the completion of the production of the Derun electronic CPU connector project, it will form a production capacity of 2 million pieces per month. Another computer connector project is a DDR connector, a memory connector, with a total investment of 134 million yuan. The other three projects are LED connectors, automotive connectors and R&D centers.

"Computer connectors, especially CPU connectors, are very worthy of optimism. We are not obsessed with orders. The production capacity is awkward." Qiu Weimin, vice chairman of Derun Electronics, told reporters, "We have many years of cooperation with Tyco, Tyco is gradually Exiting the computer connector market, many of its orders will be transferred to us for production.” Derun Electronics also said in the announcement that the return on investment of both computer connector projects will exceed 35%.

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