Core Viewpoint - The report highlights that the evolution of AI computing hardware is driving structural growth opportunities in the PCB (Printed Circuit Board) industry, with significant demand for high-layer and HDI boards due to the increasing requirements of AI applications and high-performance computing [1][27]. Industry Overview - The global PCB market size is projected to grow from $62 billion in 2020 to $75 billion in 2024, with a compound annual growth rate (CAGR) of 4.9%. By 2029, the market is expected to reach $93.7 billion, with a CAGR of 4.6% from 2024 to 2029 [1][27]. - The AI and high-performance computing sectors are anticipated to see substantial growth, with the market size expected to reach $15 billion by 2029, reflecting a CAGR of 20.1% from 2024 to 2029 [1][27]. Demand Drivers - The demand for high-layer PCBs and HDI boards is rapidly increasing, driven by the need for high-frequency, low-signal loss, and high-heat dissipation performance in AI servers. The value of a single AI server PCB is significantly higher than that of traditional servers [1][27]. - The market for high-layer PCBs is projected to reach $171 billion by 2029, while the share of high-end HDI boards in the global HDI market is expected to rise from 47% in 2024 to 57% in 2029, with a market size of $9.6 billion [1][27]. Technological Advancements - AI server requirements are pushing PCB technology upgrades, necessitating the use of high-layer (14-30 layers) and low-loss materials. This includes the adoption of low roughness reverse (RTF) copper foil and very low loss materials to minimize signal distortion [1][27]. - The report emphasizes the importance of material upgrades, such as the transition from traditional fiberglass cloth to low dielectric constant Q cloth, to meet the evolving demands of high-frequency applications [1][27]. Company Strategies - Companies in the PCB sector are actively expanding their capabilities. For instance, companies like Huadian Co. are advancing high-end PCB production, while Shenghong Technology has the capacity for mass production of high-layer boards and HDI boards [1][27]. - Equipment manufacturers like Chip Microelectronics and Dazhu CNC are introducing laser equipment tailored for high-end PCB processing, while material suppliers like Honghe Technology and Feilihua are developing low-dielectric electronic fabrics and high-end copper foils [1][27].

Core Viewpoint - The recent financing and expansion plans of major PCB companies are primarily driven by the increasing demand for AI technologies and high-end PCB products, indicating a significant shift in the industry towards advanced manufacturing capabilities [1][3][6]. Group 1: Company Expansion Plans - Huadian Co. disclosed a new project for high-end printed circuit boards (PCBs) with an investment of 4.3 billion yuan, which began construction in June 2023 and is expected to start trial production in the second half of 2026 [1]. - Shenghong Technology completed a fundraising round of 1.9 billion yuan, with allocations of 850 million yuan for an AI HDI project in Vietnam and 500 million yuan for a high-layer PCB project in Thailand [1]. - Eight PCB manufacturers have announced new financing and expansion plans since July 25, focusing on enhancing their capabilities in HDI, HLC, and SLP products [1][2]. Group 2: Market Demand and Trends - The demand for high-density and high-layer PCBs is expected to grow significantly due to advancements in AI, satellite communications, and automotive electronics, with the HDI market projected to reach 17.037 billion USD by 2029, reflecting a compound annual growth rate of 6.4% [6]. - The complexity of PCB production processes is increasing, necessitating higher precision and efficiency in manufacturing equipment, particularly in plating and drilling stages [6][7]. - The shift towards high-end PCB products is driving upgrades in core materials such as copper foil, electronic cloth, and resin, which are essential for meeting the demands of high-speed signal transmission [7]. Group 3: Investment Opportunities - The expansion of PCB production is anticipated to create a favorable cycle for the industry, benefiting upstream material and equipment companies as demand for high-end PCBs rises [7]. - The global market for PCB-specific equipment is expected to reach 10.765 billion USD by 2029, with a compound annual growth rate of 8.7% from 2024 to 2029 [6].

Market Overview - On September 30, the component sector declined by 1.03%, with Shengyi Electronics leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Notable gainers in the component sector included: - Zhongfu Circuit (300814) with a closing price of 53.41, up 11.36% and a trading volume of 187,900 shares, totaling 976 million yuan [1] - Fangzheng Technology (600601) closed at 11.36, up 8.92% with a trading volume of 5,150,500 shares, totaling 5.632 billion yuan [1] - Fangbang Co., Ltd. (688020) closed at 68.50, up 6.78% with a trading volume of 51,300 shares, totaling 34.6 million yuan [1] - Major decliners included: - Shengyi Electronics (688183) closed at 78.50, down 3.37% with a trading volume of 196,900 shares, totaling 1.557 billion yuan [2] - Yuandiwei (832491) closed at 34.27, down 2.78% with a trading volume of 74,100 shares, totaling 256 million yuan [2] - Dongshan Precision (002384) closed at 71.50, down 2.58% with a trading volume of 523,100 shares, totaling 376.8 million yuan [2] Capital Flow - The component sector experienced a net outflow of 1.335 billion yuan from institutional investors, while retail investors saw a net inflow of 1.108 billion yuan [2][3] - Notable net inflows from retail investors included: - Fangzheng Technology (600601) with a net inflow of 668.9 million yuan [3] - Zhongfu Circuit (300814) with a net inflow of 181 million yuan [3] - Conversely, significant net outflows from institutional investors were observed in: - Nanya New Materials (688519) with a net outflow of 572 million yuan [3] - Yibotech (301366) with a net outflow of 1.640 million yuan [3]

Core Viewpoint - Dongshan Precision's stock has experienced significant fluctuations, with a year-to-date increase of 146.82% but a recent decline of 6.01% over the past five trading days [1] Group 1: Stock Performance - As of September 30, Dongshan Precision's stock price was 71.90 CNY per share, with a market capitalization of 131.69 billion CNY [1] - The stock has seen a trading volume of 1.5 billion CNY, with a turnover rate of 1.49% [1] - The company has appeared on the "龙虎榜" (a trading board for stocks with significant trading activity) eight times this year, with the most recent appearance on September 11, where it recorded a net buy of 487 million CNY [1] Group 2: Financial Performance - For the first half of 2025, Dongshan Precision reported a revenue of 16.955 billion CNY, representing a year-on-year growth of 1.96%, and a net profit attributable to shareholders of 758 million CNY, which is a 35.21% increase year-on-year [2] - The company has distributed a total of 1.544 billion CNY in dividends since its A-share listing, with 731 million CNY distributed over the past three years [3] Group 3: Shareholder Information - As of September 19, the number of shareholders for Dongshan Precision reached 99,600, an increase of 18.14% from the previous period [2] - The largest circulating shareholder is Hong Kong Central Clearing Limited, holding 63.4631 million shares, an increase of 14.0925 million shares from the previous period [3] - New institutional investors include Morgan Emerging Markets Fund, which holds 12.4684 million shares [3]

Group 1 - The company, Suzhou Dongshan Precision Manufacturing Co., Ltd., has approved a proposal for its wholly-owned subsidiary, Hong Kong Chaoyi, to acquire 100% of Source Photonics Holdings (Cayman) Limited for a consideration not exceeding $629 million [1] - The acquisition includes an Employee Stock Option Program (ESOP) with a maximum consideration of $58 million, and the company plans to subscribe to convertible bonds of up to 1 billion RMB to support Source Photonics' operational needs [1] - The total investment amount for this transaction is capped at 5.935 billion RMB, and upon completion, Source Photonics will become a wholly-owned subsidiary of Hong Kong Chaoyi [1] Group 2 - The company has already made payments for the main equity transfer or deposit as per the relevant agreements and will proceed with the equity change procedures in an orderly manner [2] - The company will fulfill its information disclosure obligations based on the progress of the transaction [2]

Investment Highlights - PCB technology is evolving in materials, processes, and architecture, driving continuous value growth. The demand from AI servers, high-speed communication, and automotive electronics is pushing PCB technology upgrades across these three dimensions [2][3][9] - The upstream high-end materials are in short supply, and cost increases are being passed down to downstream PCB manufacturers. The core materials for copper-clad laminates (CCL) include copper foil, resin, and fiberglass cloth, with cost shares of 39%, 26%, and 18% respectively [4][6][46] - The PCB market is on an upward cycle, driven by AI, with both volume and price increasing across various sectors. The global PCB market is expected to reach $94.7 billion by 2029, with a CAGR of 5.2% from 2024 to 2029 [7][8] PCB Technology Evolution - The evolution of PCB technology is driven by high line density and electrical performance. PCBs serve as critical interconnects in electronic products, supporting various components and providing electrical connections [10][11] - The PCB production technology is continuously updated in materials, processes, and architecture, with significant advancements in high-density interconnects and high-performance materials [18][19][20] Upstream Materials - The core materials for CCL are copper foil, resin, and fiberglass cloth, which significantly influence signal transmission speed and loss. The CCL accounts for 40% of the total PCB cost [39][46] - The global CCL industry is highly concentrated, with a CR10 of 77% in 2024, indicating a strong oligopoly in the market [41] - The demand for high-end HVLP copper foil and ultra-thin copper foil is surging, with Japanese and Taiwanese manufacturers dominating the high-end market [60][62][63] Market Dynamics - The PCB industry is experiencing a shift towards Southeast Asia, with China's share of the global PCB market expected to be around 50% by 2029. The industry has matured, with significant competition and a fragmented market [17] - The demand for special fiberglass cloth is increasing due to AI and high-speed communication, leading to upgrades in low-dielectric and quartz cloth [66][70] Future Outlook - The PCB market is expected to benefit from the ongoing technological advancements and increasing demand from AI and high-speed communication sectors. The integration of advanced packaging technologies like CoWoP and embedded power chips is anticipated to further enhance PCB value [23][32][34]

苏州东山精密制造股份有限公司 对外投资进展公告 证券代码：002384 证券简称：东山精密 公告编号：2025-066 公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记 载、误导性陈述或重大遗漏。 目前公司已经依据相关协议支付了主要股权转让款（或保证金），后续将按 照相关规则有序推进股权变更手续，并根据相关进展及时履行信息披露义务。 特此公告。 苏州东山精密制造股份有限公司董事会 2025 年 9 月 29 日 一、对外投资概述 苏州东山精密制造股份有限公司（以下简称"公司"）于 2025 年 6 月 13 日召开第六届董事会第二十二次会议，审议通过了《关于对外投资的议案》，同 意公司全资子公司超毅集团（香港）有限公司（以下简称"香港超毅"）拟收购 Source Photonics Holdings (Cayman)Limited（以下简称"索尔思光电"或者 "目标公司"）100%股份（以下简称 "本次收购" ），以及公司认购其可转债， 其中索尔思光电 100%股份收购对价不超过 6.29 亿美元；索尔思光电 ESOP （Employee Stock Option Program，员工期权激 ...

Market Performance - The component sector increased by 2.9% on September 29, with Shenzhen South Circuit leading the gains [1] - The Shanghai Composite Index closed at 3862.53, up 0.9%, while the Shenzhen Component Index closed at 13479.43, up 2.05% [1] Top Gainers in Component Sector - Shenzhen South Circuit (002916) closed at 221.29, up 7.14% with a trading volume of 85,700 shares and a turnover of 1.828 billion [1] - Dongshan Precision (002384) closed at 73.39, up 7.01% with a trading volume of 680,900 shares and a turnover of 492.3 million [1] - Shiyun Circuit (603920) closed at 46.33, up 6.51% with a trading volume of 321,500 shares and a turnover of 146.2 million [1] Market Capital Flow - The component sector saw a net inflow of 962 million from institutional investors, while retail investors experienced a net outflow of 442 million [2][3] - Major stocks like Shenghong Technology (300476) had a net inflow of 455 million from institutional investors, while it faced a net outflow of 192 million from retail investors [3] Notable Decliners - Tianjin Pulin (002134) closed at 20.53, down 2.24% with a trading volume of 82,500 shares and a turnover of 169 million [2] - Zhongying Technology (300936) closed at 38.70, down 1.65% with a trading volume of 18,000 shares and a turnover of 70.25 million [2] Summary of Trading Activity - The trading activity in the component sector indicates a strong performance from leading stocks, while some stocks faced declines, reflecting mixed investor sentiment [1][2][3]

Group 1 - The core viewpoint of the news is that Dongshan Precision has seen a significant increase in its stock price, with a rise of 5.37% to 72.26 CNY per share, and a total market capitalization of 132.35 billion CNY [1] - Dongshan Precision, established on October 28, 1998, and listed on April 9, 2010, specializes in manufacturing and services related to precision sheet metal parts, precision castings, and flexible circuit boards [1] - The company's main business revenue composition includes: electronic circuit products (65.23%), touch panels and LCD display modules (17.98%), precision components (13.93%), LED display devices (1.69%), and others (1.17%) [1] Group 2 - From the perspective of fund holdings, Yongying Fund has a significant position in Dongshan Precision, with its fund "Yongying Steady Growth 18-Month Holding Mixed A" holding 5,000 shares, accounting for 0.36% of the fund's net value [2] - The fund has generated an estimated floating profit of approximately 18,400 CNY as of the report date [2] - The fund was established on January 26, 2021, with a current scale of 52.37 million CNY, and has achieved a year-to-date return of 4.48% [2]

Group 1 - The core viewpoint of the article highlights the ongoing trend of A-share companies planning to list in Hong Kong, with 18 companies disclosing their intentions to do so in September 2023 [1] - Among these companies, Dongshan Precision announced on September 23 its plan to issue H-shares and list on the Hong Kong Stock Exchange [1] - The list of companies includes notable names such as Wufangzhai, Borui Pharmaceutical, and Haierland, indicating a broad interest across various sectors [1]