Summary of AI PCB Industry and Related Companies Industry Overview - The AI PCB market is expected to exceed $10 billion by 2026 and reach over $13 billion by 2027, driven primarily by the surge in demand for ASICs and switches, as well as the application of NVIDIA's Rubin series products [1][2][4]. Key Companies and Market Dynamics - **High-Speed Copper Clad Laminate (CCL)**: NVIDIA's cabinets and ASIC solutions primarily utilize the Ma 8 CCL, with the next-generation Ma 9 CCL expected to triple the value per unit in 1.6T switches. Companies like Shengyi Technology and Nanya New Material are poised to expand their market share [1][5]. - **PCB Market Leaders**: Companies such as Shenzhen Circuits, Huitian Technology, and Pegatron hold significant market shares in the ASIC and switch PCB markets. Pegatron stands out for its mSAP technology, while Shengyi Technology and Nanya New Material excel in high-speed CCL [1][6][9]. - **Profit Elasticity**: High-speed CCL companies exhibit substantial profit elasticity. Shengyi Technology's monthly production capacity is 1 million units, with a potential annual revenue of approximately 20 billion RMB, indicating significant profit potential [7]. Price Trends and Future Expectations - **Ordinary CCL Pricing**: Prices for ordinary CCL (FR4) rose by 5% to 10% from March to May but fell in June due to decreased demand. However, a price increase of 7% to 8% was announced by secondary companies in early August, indicating a positive outlook for future price increases due to reduced supply from leading companies shifting capacity to high-speed boards and increased AI PCB demand [8][9]. Technological Developments - **PCB Technology Trends**: The industry is witnessing a shift from 32-layer to 36-layer and above high-multilayer PCBs, with HDI boards transitioning from 5-stage to 7-stage enhancements. The copper foil sector is also recovering, with high-frequency ultra-low profile (HZLP) copper foil being applied in high-end AI servers [3][33]. Electronic Fabric Market - The electronic fabric market is transitioning from traditional fiberglass to quartz fabric, which is essential for high-frequency applications. Companies like Zhongyi Technology are advancing in this space, with plans to achieve an annual production capacity of 20 million meters by 2030 [10][11]. Competitive Landscape - **Key Players**: In the AI PCB sector, Shenzhen Circuits, Huitian Technology, and Pegatron are recommended for their strong HDI technology. Shengyi Technology and Nanya New Material are favored in the high-speed CCL domain due to their established supply chains and production capacities [6][9]. - **Quartz Fabric Development**: Zhongyi Technology is a leading player in quartz electronic fabric, with significant advancements in product capabilities and production capacity [11][12]. Conclusion - The AI PCB industry is on a growth trajectory, driven by technological advancements and increasing demand for high-performance materials. Key players are well-positioned to capitalize on these trends, with a focus on expanding production capacities and enhancing product offerings to meet the evolving market needs [1][2][3][4][5][6][7][8][9][10][11][12][33].

Group 1 - The core viewpoint of the article is that the copper-clad laminate industry is experiencing a price increase due to strong demand and high raw material costs, with a shift towards a more sustainable pricing model expected in the coming years [1] Group 2 - On August 15, Jiantao Laminates announced a price increase of 10 yuan per sheet, citing cost pressures [1] - The direct reason for the price increase in the copper-clad laminate industry is the relatively strong demand, high operating rates, and improved profitability of downstream customers [1] - The report suggests that the pricing logic in the industry is transitioning from a corrective price increase in the first half of 2024 and 2025 to a release of profit potential driven by supply-demand dynamics and industry expansion [1] - There is an optimistic outlook for leading manufacturers regarding profit improvement opportunities due to these market conditions [1]

Market Overview - Hong Kong stock market opened lower and closed down 0.98% due to concerns over the upcoming US-Russia summit, while A-shares surged, with the Shanghai Composite Index returning to around 3700 points and a trading volume exceeding 2.2 trillion yuan, marking the 29th trading day in A-share history to surpass 2 trillion yuan [1][5] - The anticipated US-Russia summit is expected to yield limited results, with no plans for signed agreements, and discussions likely to focus on underlying strategies rather than public outcomes [2][3] Sector Focus - The banking sector in Hong Kong is underperforming, primarily due to a perceived lack of value compared to insurance stocks, which are increasingly favored by institutional investors [3] - The sentiment in the market remains positive, with over ten stocks in the Hong Kong Stock Connect rising more than 10%, particularly in the robotics sector, driven by upcoming events like the World Humanoid Robot Games [4] - The semiconductor and AI-related sectors are experiencing significant growth, with companies like Hongteng Precision rising over 33% due to their involvement in NVIDIA's supply chain [5] Individual Company Highlights - Xiexin Technology has entered a strategic partnership with Taibao Asset Management, aiming to explore tokenization solutions for real-world assets and develop compliant digital asset products [10][12] - The solar industry is showing signs of recovery, with significant price increases in photovoltaic glass and a reduction in production, indicating a potential shift towards better market conditions [7][8] - GCL-Poly Energy has secured a procurement contract for silicon materials worth up to 450 million yuan, reflecting the ongoing demand and price increases in the solar component market [10][11]

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Jiantao Laminated Board, which rose by 20.53% to 13.56 HKD per share, with a trading volume of 4.34 billion HKD on August 15 [1] - Jiantao Laminated Board Holdings Limited specializes in the production of copper-clad laminates, including epoxy glass fiber, paper, and CEM laminates, with over 20 factories located in South and East China [1] - According to a research report by Prismark Partners LLC, the company held a 14.3% market share in the global copper-clad laminate market in 2010, maintaining the top position in the industry for six consecutive years [1] Group 2 - As of the 2024 annual report, Jiantao Laminated Board reported total revenue of 17.17 billion HKD and a net profit of 1.228 billion HKD [2] - The company is scheduled to disclose its mid-year report for the fiscal year 2025 on August 25 [2]

Core Viewpoint - The report from CICC indicates a systematic expansion in global computing power demand, particularly for GPUs and ASICs, which is expected to significantly enhance the value of PCB products due to advancements in materials and high-layer designs [1] Industry Summary - The AI-related PCB market is projected to reach a total scale of $5.6 billion in 2025 and $10 billion in 2026, driven by strong demand for computing infrastructure [1] - The PCB and CCL markets are experiencing sustained high demand due to AI, prompting core suppliers in the industry to accelerate capacity expansion [1] - A total investment of approximately 32 billion yuan has been announced by seven listed companies in A-shares for PCB capacity expansion, with a focus on upgrading products to higher-end specifications [1] Supply Chain Insights - The ramp-up period for high-end product yields is lengthy, and the local supply chain in Southeast Asia is not yet fully mature, which may lead to a lag in capacity release compared to demand growth [1] - A supply-demand gap is expected to persist in the medium term due to these factors [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01888 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 3,120,000,000 | | 0 | | 3,120,000,000 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 3,120,000,000 | | 0 | | 3,120,000,000 | 第 2 頁 共 10 頁 v 1.1.1 公司名稱: 建滔積層板控股有限公 ...

Group 1 - The demand for high-end PCBs, such as AI servers and switches, is surging, driven by the release of Nvidia's GB200 and ASIC chips, which further stimulates industry growth [1] - The global AI server PCB market is expected to reach 19 billion yuan by 2025, with a compound annual growth rate (CAGR) exceeding 30% from 2023 to 2028 [1] - Domestic leading manufacturers, such as Shenyin Technology and Huitian Technology, are capturing market share due to their technological advantages, with some companies achieving capacity utilization rates exceeding 95% [1] Group 2 - Companies like Shenyin Electronics and Guanghua Technology are projected to see significant profit increases, with Shenyin Electronics' net profit expected to rise by 432%-471% year-on-year [2] - The demand for high-end PCBs is rapidly increasing due to AI computing power, leading to a notable supply-demand gap in AI PCBs this year [2] - CITIC Securities forecasts that the supply-demand ratio for global AI PCBs will be between 80% and 103% by 2026, indicating a tight supply situation [2] Group 3 - Kinsus Interconnect Technology's performance is expected to benefit from the recovery in copper-clad laminate demand, with price increases supporting its performance [3] - Kinsus Group is focusing on the entire PCB industry chain, developing a research center for copper-clad laminates and successfully creating various high-frequency and high-speed products for AI server GPU motherboards [3]

Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Financial Performance - The Group's revenue increased by 11% to HK$18,541.0 million in FY2024 compared to HK$16,750.2 million in FY2023[11]. - Underlying net profit attributable to owners rose by 36% to HK$1,349.0 million, up from HK$991.0 million in the previous year[11]. - Reported net profit increased by 46% to HK$1,326.1 million from HK$907.4 million in FY2023[11]. - EBITDA grew by 21% to HK$2,962.7 million, compared to HK$2,450.3 million in FY2023[11]. - The full-year dividend per share was proposed at HK$62.0 cents, a significant increase of 288% from HK$16.0 cents in FY2023[11]. - The net asset value per share increased by 3% to HK$4.92 from HK$4.79[11]. - The net gearing ratio improved to 9% from 16% in the previous year[11]. - The Group's total revenue increased by 11% year-on-year to HK$18,541.4 million, with a significant rise in net profit attributable to shareholders by 36% to HK$1,349.0 million after accounting for credit impairment provisions[29]. Divisional Performance - The Laminates Division experienced growth in both revenue and profits due to a vertically integrated value chain and broad client base[23]. - The Laminates Division's revenue increased by 11% to HK$18,304.5 million, driven by recovery in demand from the consumer electronics market and growth in air conditioning and photovoltaic panels[27]. - EBITDA for the Laminates Division rose by 26% to HK$3,023.0 million, aided by price increases in laminate products to offset rising copper costs[27]. - The Property Division's revenue decreased by 44% to HK$126.7 million, with EBITDA down 34% to HK$38.0 million, primarily focusing on rental income[28]. Investment and Capacity Expansion - The Group invested approximately HK$700 million in new capacity during the year, aiming for long-term stable returns for shareholders[32]. - The Group's laminate production capacity in Thailand is set to increase by 400,000 sheets per month, reaching a total capacity of 1 million sheets per month by the end of 2024, with further expansions planned to reach 1.8 million sheets per month[50]. - A new low-dielectric fiberglass yarn project in Qingyuan City, Guangdong Province, with an annual capacity of 500 tonnes, is under construction and expected to commence operations in the second half of 2025[50]. - The newly added 1,500-tonne monthly copper foil capacity in Lianzhou City, Guangdong Province, will be fully operational in 2025, enhancing the Group's cost efficiencies[50]. Market and Demand Trends - The electronics industry is entering a new growth phase driven by automotive electronics and AI sectors, leading to increased demand[23]. - The overall electronic market demand is strong, with significant growth in shipment volume in the first two months of 2025 compared to the same period last year[52]. - The demand for copper foil used in data centers and cloud computing has increased significantly, driving growth in the group's product offerings[52]. Environmental and Sustainability Initiatives - The group has invested approximately HK$600 million in distributed solar photovoltaic projects, expected to generate 130 million kWh of green electricity annually, saving HK$117 million in electricity costs[53]. - The group has reduced carbon dioxide emissions by 45,000 tons in 2024 through thermal energy recovery investments totaling HK$120 million[53]. - The Group is committed to environmental sustainability and complies with relevant environmental laws and regulations[103]. Corporate Governance and Management - The company has a strong board with members holding significant experience in finance, governance, and management across various sectors[72]. - The board is committed to providing independent oversight and strategic guidance to ensure sustainable growth and shareholder value[73]. - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2024[188]. Risks and Challenges - The Group faces intense competition in its industry, which may adversely affect its financial condition and business prospects if it fails to compete effectively[97]. - Management may encounter challenges related to upgrading or expanding facilities and training personnel, which could hinder expansion plans[96]. - The Group's ability to successfully implement its business strategy is contingent upon obtaining adequate funding for its expansion plans[95]. Shareholder Information - The interests held by KHL in the Company are approximately 44.03% as of December 31, 2024[187]. - KHL Group accounted for approximately 20% of the Group's total sales, making it the largest customer during the year[189]. - The proposed annual cap for the supply framework agreement with Hallgain for the years ending December 31, 2026, is HK$563 million, HK$580 million, and HK$597 million respectively[196].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from a rebound in performance in H1 2025, driven by both volume and price increases, while the sustainability of performance in H2 2025 needs to be monitored [4][5] - The forecast for net profit for 2025-2026 has been revised down from HKD 27.0 billion and HKD 29.0 billion to HKD 19.8 billion and HKD 22.1 billion, respectively, with a new forecast for 2027 at HKD 30.3 billion, representing year-on-year growth of 48.3%, 11.8%, and 36.9% [4] - The current market capitalization corresponds to a PE ratio of 11.3, 10.2, and 7.4 for 2025-2027 [4] Financial Summary and Valuation Indicators - Revenue (million HKD): 2023A: 16,750, 2024A: 18,541, 2025E: 20,261, 2026E: 21,112, 2027E: 23,916, with year-on-year growth rates of -25.1%, 10.7%, 9.3%, 4.2%, and 13.3% respectively [7] - Net Profit (million HKD): 2023A: 907, 2024A: 1,326, 2025E: 1,977, 2026E: 2,210, 2027E: 3,027, with year-on-year growth rates of -64.5%, 45.5%, 48.3%, 11.8%, and 36.9% respectively [7] - Gross Margin (%): 2023A: 16.0, 2024A: 15.7, 2025E: 19.8, 2026E: 20.5, 2027E: 22.5 [7] - Net Margin (%): 2023A: 5.4, 2024A: 7.2, 2025E: 9.8, 2026E: 10.5, 2027E: 12.7 [7] - ROE (%): 2023A: 6.1, 2024A: 8.7, 2025E: 14.0, 2026E: 15.0, 2027E: 19.4 [7] - EPS (diluted/HKD): 2023A: 0.29, 2024A: 0.43, 2025E: 0.63, 2026E: 0.71, 2027E: 0.97 [7] - P/E (times): 2023A: 24.7, 2024A: 16.9, 2025E: 11.3, 2026E: 10.2, 2027E: 7.4 [7]