Core Viewpoint - The report from Minsheng Securities highlights "speed" and "power" as the two core contradictions in current AI development, with PCB (Printed Circuit Board) being a crucial component in the AI industry chain, benefiting significantly from the ongoing advancements in PCB technology and processes [1] Group 1: PCB Industry Trends - The PCB industry is experiencing rapid development in advanced packaging and high-density interconnect technologies, transitioning from traditional HDI and substrate technologies to mSAP processes capable of sub-10μm line widths to meet the demands of high-speed signal transmission and large-scale integration [1] - New technologies such as CoWoP (Chip-on-Wafer-on-Panel) are changing the form of packaging substrates by using large-size PCBs to carry multiple chips, thereby reducing costs and enhancing interconnect density [1] Group 2: Upstream Material Demand - Driven by AI demand, leading PCB manufacturers like Shenghong Technology, Huitian Technology, and Pengding Holdings are actively expanding production, creating a resonance between material upgrades and capacity expansion [2] - Key upstream materials for PCBs include copper foil, electronic cloth, and resin, with upgrades in these materials to meet the requirements of high-speed signal transmission and lightweight designs [2] Group 3: Equipment Supply and Domestic Substitution - The core processes of PCB manufacturing, including drilling, electroplating, and etching, are critical for determining interconnect density, signal integrity, and production yield, with increasing demands for precision and reliability in these processes [3] - Domestic equipment manufacturers such as Dazhu CNC, Dingtai High-Tech, and Dongwei Technology are accelerating their layouts in advanced process equipment for high-layer boards, HDI, and mSAP, reflecting the industry's shift towards domestic substitution [3] Group 4: Investment Recommendations - Recommended PCB leading manufacturers include Shenghong Technology (300476.SZ), Pengding Holdings (002938.SZ), Huitian Technology (002463.SZ), Shenzhen South Circuit (002916.SZ), Guanghe Technology (001389.SZ), and Jingwang Electronics (603228.SH) [4] - In the materials sector, companies with core technologies and customer resources such as Honghe Technology (603256.SH), Zhongcai Technology (002080.SZ), Feilihua (300395.SZ), Defu Technology (301511.SZ), Longyang Electronics (301389.SZ), and Meilian New Materials (300586.SZ) are recommended [4] - For equipment, focus on domestic substitution in core segments with companies like Dazhu CNC (301200.SZ), Xinqi Microelectronics (688630.SH), Dingtai High-Tech (301377.SZ), and Dongwei Technology (688700.SH) [4]

Group 1 - The global server market is entering a new growth cycle starting in 2024, driven by the increasing demand for AI computing power, with an expected CAGR of 18.8% from 2024 to 2029 [2] - The PCB industry is recovering from a phase of adjustment due to weak consumer electronics and inventory cycles, with emerging demands from AI servers and high-performance infrastructure expected to drive growth from 2024 [2][3] - Domestic PCB manufacturers are actively expanding production and increasing capital expenditures, focusing on high-end products such as HDI and multi-layer boards [2][3] Group 2 - The global PCB equipment market is projected to reach 51 billion yuan in 2024, with a year-on-year growth of 9.0%, and a CAGR of 4.9% from 2020 to 2024 [3] - The demand for PCB equipment is significantly boosted by AI computing infrastructure, with the market expected to grow to 77.5 billion yuan by 2029, reflecting a CAGR of 8.7% from 2024 to 2029 [3] - Drilling, exposure, and testing equipment represent the highest value segments in the PCB equipment market, accounting for 20.75%, 16.99%, and 15.00% respectively in 2024 [3] Group 3 - The drilling equipment segment is expected to benefit from increased demand for high-end HDI, with both mechanical and laser drilling seeing growth due to the rising complexity of HDI designs [3] - The exposure equipment market is currently dominated by foreign brands, with low domestic penetration, particularly in LDI technology which is more suited for HDI [4] - The demand for plating equipment is increasing due to the higher number of plating cycles required for advanced HDI, alongside quality control pressures [5] Group 4 - Major equipment manufacturers are showing a clear upward trend, with expectations for accelerated performance in the future [6] - Key players in the drilling segment include Dazhu CNC (301200), while the exposure segment is led by Xinqi Micro (688630) and Tianzhun Technology (688003) [7] - The plating segment is highlighted by Dongwei Technology (688700), with Keg Precision (301338) noted for its role in the solder paste printing segment [7]

Company Overview - Dongwei Technology Co., Ltd. is located in Kunshan, Jiangsu Province, established on December 29, 2005, and listed on June 15, 2021. The company primarily engages in the research, design, production, and sales of high-end precision electroplating equipment and its supporting devices [1] - The main products include vertical continuous electroplating equipment for PCB electroplating, horizontal surface treatment equipment, gantry electroplating equipment, and rolling electroplating devices [1] Revenue Composition - The revenue composition of Dongwei Technology is as follows: vertical continuous electroplating equipment accounts for 62.68%, gantry electroplating equipment 13.14%, other products 9.73%, rolling horizontal film electroplating equipment 6.14%, hardware continuous electroplating equipment 3.82%, horizontal surface treatment equipment 2.78%, other (supplementary) 0.99%, photovoltaic copper plating equipment 0.40%, and magnetron sputtering winding coating equipment 0.33% [1] Fund Holdings - According to data, one fund under Jiashi Fund holds Dongwei Technology as a top ten heavy stock. The Jiashi SSE STAR Market Industrial Machinery ETF (588850) held 10,100 shares in the second quarter, accounting for 2.54% of the fund's net value, ranking as the tenth largest heavy stock [2] - The Jiashi SSE STAR Market Industrial Machinery ETF (588850) was established on April 16, 2025, with a latest scale of 15.6942 million. Since its inception, it has achieved a return of 28.12% [2]

Core Insights - Guande Dongwei Technology Co., Ltd. has obtained a patent for a "clamping device and conveying system," with the authorization announcement number CN113428569B, applied on July 2021 [1] - The company was established in 2013 and is located in Xuancheng City, primarily engaged in the manufacturing of electrical machinery and equipment [1] - The registered capital of Guande Dongwei Technology Co., Ltd. is 180 million RMB [1] Company Activities - The company has participated in six bidding projects [1] - It holds three trademark registrations and has 151 patent records [1] - Additionally, the company possesses 24 administrative licenses [1]

Investment Rating - The report maintains a "Recommended" rating for leading PCB manufacturers such as Shenghong Technology, Pengding Holdings, and Huadian Co., Ltd. [4][5] Core Viewpoints - The PCB industry is experiencing rapid advancements in packaging and high-density interconnect technologies, with traditional HDI and substrate technologies evolving into mSAP processes to meet the demands of high-speed signal transmission and large-scale integration [1][2] - The demand for PCB is driven by AI applications, leading to significant expansions in production capacity among leading companies, with total investments exceeding 30 billion RMB [2][20] - The core materials for PCB, including copper foil, electronic cloth, and resin, are undergoing upgrades to meet the high-frequency and high-speed requirements of AI applications [2][20][26] Summary by Sections 1. CoWoP and mSAP as Core Technologies - CoWoP (Chip-on-Wafer-on-PCB) is emerging as a future packaging route, enhancing interconnect density and reducing costs by directly using large-size PCBs [1][11] - mSAP (Modified Semi-Additive Process) is becoming the core process for achieving sub-10 µm line capabilities, essential for high-performance applications [1][14] 2. PCB Capacity Expansion and Material Upgrades - Leading PCB manufacturers are actively expanding production capacity, with significant investments announced by companies like Huadian Co., Ltd. and Shenghong Technology [2][20] - The upgrade of core materials includes the transition of copper foil from HVLP1 to HVLP5, electronic cloth to third-generation low-dielectric cloth, and resin to hydrocarbon and PTFE types [2][20][28] 3. Tight Supply of Core Equipment and Acceleration of Domestic Substitution - The supply of core PCB equipment, including drilling, plating, and etching imaging, is tight, with domestic manufacturers accelerating their layouts in advanced process equipment [2][49] - Companies like Dazhu CNC and Ding Tai High-Tech are focusing on high-layer boards and HDI equipment to meet the increasing demands of the industry [2][49] 4. Investment Recommendations - The report suggests focusing on leading PCB manufacturers such as Shenghong Technology, Pengding Holdings, and Huadian Co., Ltd., as well as material companies with core technologies like Honghe Technology and Zhongcai Technology [3][4] - Equipment manufacturers involved in domestic substitution, such as Dazhu CNC and Xinqi Microelectronics, are also highlighted as potential investment opportunities [3][4]

Core Viewpoint - Dongwei Technology's stock price has shown significant growth this year, with a year-to-date increase of 56.68%, despite a recent decline in the last five trading days [2]. Group 1: Stock Performance - As of August 22, Dongwei Technology's stock price reached 46.00 CNY per share, with a market capitalization of 13.726 billion CNY [1]. - The stock has experienced a 2.15% decline over the last five trading days, but a 20.10% increase over the last 20 days and a 37.15% increase over the last 60 days [2]. - The company has appeared on the "Dragon and Tiger List" once this year, with a net buy of 262 million CNY on March 10 [2]. Group 2: Financial Performance - For the first quarter of 2025, Dongwei Technology reported revenue of 211 million CNY, reflecting a year-on-year growth of 7.08% [2]. - The company has distributed a total of 240 million CNY in dividends since its A-share listing, with 152 million CNY distributed over the past three years [2]. Group 3: Shareholder Information - As of March 31, 2025, the number of shareholders for Dongwei Technology was 8,403, a decrease of 15.33% from the previous period [2]. - The average number of circulating shares per shareholder increased by 18.10% to 35,511 shares [2]. - Among the top ten circulating shareholders, China Europe Alpha Mixed A (009776) is the eighth largest, holding 4.68 million shares as a new shareholder [3]. Group 4: Company Overview - Dongwei Technology, established on December 29, 2005, is located in Kunshan, Jiangsu Province, and was listed on June 15, 2021 [2]. - The company specializes in high-end precision electroplating equipment and is categorized under the machinery and equipment industry, specifically in specialized equipment [2].

Investment Rating - The report maintains an "Accumulate" rating for Dongwei Technology (688700) [1] Core Views - The demand for high-end electroplating equipment is expected to increase due to the CoWoP technology combined with HDI, positioning the company to benefit significantly [7] - The company is well-positioned to capitalize on the growth in HDI electroplating equipment demand, supported by its advanced technology and product offerings [7] Financial Forecasts - Projected total revenue (in million RMB) for 2023A is 909.23, with a decline of 10.13% year-on-year, and is expected to rise to 1,266.38 by 2027E, reflecting a growth of 11.45% [1] - The forecasted net profit attributable to the parent company (in million RMB) is 151.43 for 2023A, with a significant drop of 29.01% year-on-year, expected to recover to 224.36 by 2027E, showing a growth of 21.48% [1] - The latest diluted EPS is projected to be 0.51 for 2023A, increasing to 0.75 by 2027E [1] - The current price-to-earnings ratio (P/E) is 94.25, with future projections of 206.03 for 2024A, decreasing to 63.61 by 2027E [1] Market Data - The closing price of the stock is 47.83 RMB, with a market capitalization of 14,272.54 million RMB [5] - The stock has a price-to-book ratio of 8.15 and a one-year price range of 16.95 to 51.00 RMB [5] Key Technologies and Market Trends - The CoWoP process is emerging as a mainstream packaging technology, simplifying processes and reducing transmission losses, which is crucial for the PCB industry [7] - The MSAP and SAP processes are identified as key technologies for achieving HDI, driving the demand for high-value electroplating equipment [7] - The company’s horizontal electroplating equipment is validated by leading customers, indicating a promising domestic replacement trend [7]

Core Insights - The price increase of copper-clad laminates reflects the rising demand in the PCB industry, driven by the growth in AI computing servers [2][3] - Major copper-clad laminate manufacturers, including Weilibang, Jiantao Laminates, and Hongruixing, have announced price hikes due to high raw material costs and increased bargaining power from strong demand [2][3] Industry Overview - The global server sales reached $95.2 billion in Q1 2025, a year-on-year increase of 134.1%, with expectations for the global server market to reach $366 billion in 2025, a 44.6% increase [3] - The PCB market is projected to grow from $73.57 billion in 2024 to $78.56 billion in 2025, with a year-on-year growth of 6.8% [3] - The demand for high-layer multi-layer boards and HDI boards is significantly outpacing the overall PCB industry growth, with multi-layer boards expected to grow by 40.2% and HDI boards by 18.8% in 2024 [3] Production Insights - Key production processes in PCB manufacturing include drilling, exposure, and testing, with drilling equipment accounting for approximately 20% of the total industry value [4] - The increasing complexity of HDI boards necessitates advancements in drilling, exposure, and plating processes, leading to higher demand for precision equipment [4] - Domestic production rates are high for mechanical drilling, while opportunities for domestic substitution exist in laser drilling and imaging processes [4] Investment Recommendations - Focus on core production processes: for drilling, consider Dazhu CNC (301200.SZ) and consumables from Dingtai High-Tech (301377.SZ) and Zhongtung High-Tech (000657.SZ); for exposure, look at Chipbond Technology (688630.SH) and Tianzhun Technology (688003.SH); for plating, Eastway Technology (688700.SH) is recommended; for solder paste printing, Keg Precision (301338.SZ) is suggested [5]

Investment Rating - The industry investment rating is "Overweight" [3] Core Viewpoints - The report emphasizes the significant growth potential in the humanoid robotics sector, with a projected cumulative global demand of approximately 2 million units by 2030, indicating a critical breakthrough phase from 0 to 1 [6][20] - The report highlights the acceleration of N-type penetration in photovoltaic equipment, strengthening the competitive edge of leading companies under the Matthew effect [21] - The energy storage sector is identified as essential for building a new type of power grid, with favorable policies enhancing industry prosperity [21] - The semiconductor equipment market is expected to reach $140 billion by 2030, with an increasing share from mainland China, although the domestic production rate remains low [21] - The automation market, particularly industrial consumables, is projected to grow from approximately 40 billion to 55.7 billion by 2026, benefiting from increased concentration and import substitution [22] - Hydrogen energy, particularly green hydrogen, aligns with carbon neutrality goals, supported by the rapid development of photovoltaic and wind energy [21] Summary by Sections Humanoid Robotics - Key companies recommended for investment include Huasheng Tiancai, Sanhui Electric, and Zhejiang Rongtai, among others [4] - The report discusses the recent humanoid robot sports event in Beijing, showcasing over 500 robots from 16 countries competing in various categories [15][20] - The introduction of the Genie Envisioner platform by Zhiyuan Robotics is noted as a significant advancement in the field, integrating video generation with robotic control [11][20] Photovoltaic Equipment - The report suggests focusing on leading companies like Maiwei and Jiejiacreating, which possess technological innovation and customer base advantages [21] - The overall price center of the photovoltaic industry chain is declining, with a focus on cost and efficiency improvements [21] Energy Storage - The report highlights the favorable policies for both generation-side and user-side energy storage, driving comprehensive development in the sector [21] - Companies like Xingyun and Kexin are identified as key players in the energy storage market [21] Semiconductor Equipment - The semiconductor equipment market is projected to double in the next decade, with a significant increase in demand for domestic production [22] - Companies such as Zhongwei and Beifang Huachuang are recommended for investment [22] Automation - The automation market is expected to grow significantly, with a focus on industrial consumables and the potential for leading companies to benefit from increased market concentration [22] Hydrogen Energy - The report emphasizes the importance of green hydrogen in achieving carbon neutrality, recommending companies like Longi Green Energy and Yihua Tong for investment [21]

Group 1 - The core point of the article highlights the financing activities of Dongwei Technology, indicating a net sell-off in the recent trading days [1] - On August 15, Dongwei Technology had a financing buy-in amount of 0.31 billion, ranking 719th in the two markets, with a financing repayment amount of 0.86 billion, resulting in a net sell of 54.90 million [1] - Over the last three trading days (August 13-15), Dongwei Technology experienced financing buy-ins of 0.62 billion, 1.00 billion, and 0.31 billion respectively [1] Group 2 - In terms of securities lending, on August 15, there were 0.18 thousand shares sold short, while there was a net buy of 0.77 thousand shares [1]