Core Viewpoint - The PCB industry is experiencing unprecedented growth opportunities driven by the surge in AI server demand and the unexpected recovery in traditional sectors, marking the beginning of a new growth cycle for the industry [1][2]. Demand Drivers - The resilience in PCB demand is attributed to a dual-driven pattern of "emerging sectors' explosion + traditional sectors' recovery" [2]. - The demand for PCBs in AI servers has transitioned from a conceptual phase to actual performance, significantly increasing the industry's growth potential [3]. - AI servers require higher PCB content, with UBS estimating that the single-unit PCB content for AI servers is 5-10 times higher than traditional servers, leading to a rapid expansion of the server PCB market [4]. Traditional Sector Recovery - Traditional PCB demand is also recovering, contributing 70-80% of revenue for PCB companies, providing a solid foundation for the industry [5]. - The smartphone sector is benefiting from the unexpected shipment volumes of the iPhone 17 series, with global smartphone shipment forecasts for 2025/26 adjusted to 1.26 billion and 1.27 billion units, reflecting year-on-year growth of 3% and 1% respectively [5]. - The PC market is seeing a resurgence due to the replacement cycle following the end of Windows 10 support, with global PC shipment growth expected to exceed 4% in 2025/26 [5]. PCB Industry Chain Analysis - The PCB industry chain exhibits a concentrated value distribution, with substrates and copper-clad laminates (CCL) being the core raw materials benefiting from the AI demand explosion [7]. - BT substrates are experiencing high utilization rates due to the recovery in storage chip demand and supply shortages of key materials [8]. - The ABF substrate market is undergoing a domestic production acceleration, with potential for Chinese PCB companies to capture market share through cost advantages and localized services [9]. CCL Market Dynamics - The CCL market is characterized by a supply-demand imbalance in high-end products, with high-speed CCL being the most explosive segment due to AI server upgrades [10]. - UBS forecasts a 10-15% increase in high-speed CCL average selling prices (ASP) by the second half of 2025, with tight supply conditions expected to persist into 2026 [11]. Company Performance - Companies like Huadian and Shennan Circuits are well-positioned with full coverage of North American clients and strong relationships with major AI customers [12][13]. - Shenghong Technology is expanding aggressively and maintaining strong customer acquisition trends, while companies like Sinyi Electronics are benefiting from increased orders from AWS [13][14]. - The PCB sector's valuation reflects the industry's upward cycle expectations, with the PCB index rising 70% year-to-date, and a projected net profit CAGR of 42% from 2024 to 2027, indicating reasonable current valuations [17]. Conclusion - The Chinese PCB industry is entering a new upward cycle driven by AI, with upstream segments like substrates and CCL, along with leading companies in the AI server supply chain, being the primary beneficiaries [17].

Core Viewpoint - The PCB industry is experiencing unprecedented growth opportunities driven by the surge in AI server demand and the unexpected recovery in traditional sectors, marking the beginning of a new growth cycle for the industry [2][4]. Demand Side Dual-Drive - The resilience in PCB demand is attributed to a dual-drive pattern of "emerging sectors' explosion + traditional sectors' recovery" [3][4]. - The breakthrough in AI technology is pushing the industry into a "golden phase" characterized by simultaneous increases in both volume and price [4]. AI Server Demand - The demand for PCBs in AI servers has transitioned from "concept" to "actual performance," significantly boosting industry growth [5]. - By 2025, NVIDIA's GB 200/300 NVL72 shipment is expected to meet projections, with the Blackwell & Rubin series anticipated to exceed 50,000-60,000 units in 2026, driving PCB demand [5]. - AI servers require higher technical specifications for PCBs compared to traditional servers, with high-layer count (HLC) and high-density interconnect (HDI) boards becoming core demands [5]. - UBS estimates that the PCB content per AI server will increase by 5-10 times compared to traditional servers, significantly impacting the market size [6]. Traditional PCB Demand Recovery - Traditional PCB demand is also recovering unexpectedly, providing a solid foundation for the industry [7]. - The smartphone sector is benefiting from the unexpected shipment volume of the iPhone 17 series, with global smartphone shipment forecasts for 2025/26 raised to 1.26 billion and 1.27 billion units, reflecting year-on-year growth of 3% and 1% respectively [7]. - The PC sector is experiencing a resurgence due to the replacement cycle following the end of Windows 10 support, with global PC shipment growth expected to exceed 4% in 2025/26 [7]. - General server demand is robust, driven by digital transformation and AI-related workloads, with global general server shipments projected to grow by 8.6% and 8.0% in 2025/26 [7]. PCB Industry Chain Analysis - The PCB industry chain exhibits an "upstream concentration" characteristic, with substrates and copper-clad laminates (CCL) being core raw materials benefiting from the AI demand explosion [9]. - BT substrates are experiencing high utilization rates due to the recovery in storage chip demand and supply shortages of key materials [11]. - The price of BT substrates has increased by 30% this year, with further increases expected by year-end [11]. - The high-speed CCL segment is seeing explosive demand, particularly for AI servers, with prices expected to rise by 10-15% in the second half of 2025 [13]. Company Analysis - Companies like Huadian Co. and Shennan Circuit are well-positioned in the North American market, with strong customer bases [15][16]. - Shenghong Technology is aggressively expanding capacity and customer outreach, particularly with NVIDIA [17]. - Companies such as Sinyi Electronics and Dazhu CNC are also reporting strong performance, driven by increased demand and pricing power in the PCB segment [18][20]. Conclusion - The Chinese PCB industry is entering a new upward cycle driven by AI, with upstream segments like substrates and CCL, along with leading companies in the AI server supply chain, being the primary beneficiaries [23].

Core Points - The Shanghai Composite Index fell by 0.22% on October 28, with 10 industries rising, led by the comprehensive and defense industries, which increased by 2.06% and 1.07% respectively. The industries with the largest declines were non-ferrous metals and beauty care, down by 2.72% and 1.51% respectively [1] Industry Summary - The electronic industry experienced a decline of 0.37%, with a net outflow of 12.127 billion yuan in main funds. Out of 470 stocks in this sector, 209 rose, 5 hit the daily limit, and 253 fell. There were 118 stocks with net inflows, with 14 exceeding 100 million yuan, led by C Yicai-U with a net inflow of 1.295 billion yuan, followed by Fangzheng Technology and Hu Dian Co., with net inflows of 896 million yuan and 476 million yuan respectively [1] - The top gainers in the electronic industry included C Yicai-U, which surged by 198.72%, and Fangzheng Technology, which rose by 10.01%. Other notable gainers were Hu Dian Co. and He Li Tai, with increases of 3.21% and 10.16% respectively [1] - The electronic industry saw significant outflows, with 48 stocks experiencing net outflows exceeding 100 million yuan. The largest outflows were from Shenghong Technology, with 1.14 billion yuan, followed by SMIC and Wentai Technology, with outflows of 844 million yuan and 641 million yuan respectively [2]

Core Viewpoint - Huadian Co., Ltd. has shown significant stock performance with a year-to-date increase of 101.99% and a recent rise of 12.89% over the last five trading days, indicating strong market interest and potential growth in the PCB industry [1][2]. Company Overview - Huadian Co., Ltd. is located in Kunshan, Jiangsu Province, and was established on April 14, 1992. It was listed on August 18, 2010. The company specializes in the research, production, and sales of printed circuit boards (PCBs), with PCB business revenue accounting for 95.98% of total revenue [1][2]. Financial Performance - For the first half of 2025, Huadian Co., Ltd. achieved operating revenue of 8.494 billion yuan, representing a year-on-year growth of 56.59%. The net profit attributable to shareholders was 1.683 billion yuan, reflecting a year-on-year increase of 47.50% [2]. - The company has distributed a total of 4.112 billion yuan in dividends since its A-share listing, with 2.204 billion yuan distributed over the last three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders for Huadian Co., Ltd. was 128,200, a decrease of 40.16% from the previous period. The average number of tradable shares per shareholder increased by 67.18% to 14,997 shares [2]. - Major shareholders include Hong Kong Central Clearing Limited, which holds 123 million shares, and various ETFs such as Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF, indicating a diversified institutional interest [3]. Market Activity - The stock price of Huadian Co., Ltd. reached 79.08 yuan per share with a trading volume of 2.258 billion yuan and a turnover rate of 1.51%. The stock has appeared on the "Dragon and Tiger List" five times this year, indicating significant trading activity [1].

Group 1 - The core point of the article is the performance and changes in the top holdings of the Zhonghang Opportunity Leading Mixed Fund, which reported a net value growth rate of 119.56% over the past year [1] Group 2 - The fund's top ten holdings saw the addition of new stocks: Yuanjie Technology, Guangku Technology, and Dongshan Precision [1] - The fund increased its position in Yingweike by 12.65 million shares, making it the largest holding [1] - The previous top holdings, Changxin Bochuang, Shijia Photon, and Founder Technology, were removed from the top ten [1] Group 3 - Significant increases in holdings include: - Yingweike (increased by 364.09% to 16.13 million shares, valued at 1.29 billion) - Xinyi Sheng (increased by 332.17% to 3.51 million shares, valued at 1.285 billion) - Zhongji Xuchuang (increased by 338.67% to 3.12 million shares, valued at 1.26 billion) - Shenghong Technology (increased by 502.27% to 4.25 million shares, valued at 1.214 billion) - Tianfu Communication (increased by 539.34% to 6.98 million shares, valued at 1.171 billion) - Hudian Co. (increased by 669.13% to 9.94 million shares, valued at 730 million) - Dekeli (increased by 312.55% to 5.64 million shares, valued at 683 million) [1]

Group 1 - The core viewpoint of the article highlights the significant performance of "doubling funds" in the market, particularly those heavily invested in the AI-related sectors such as optical communication, PCB, and semiconductors, which have seen substantial stock price increases in the third quarter [2][4]. - As of October 24, over 30 funds have achieved doubling returns this year, with the top-performing fund, Yongying Technology Smart Selection A, reporting a total return of 206.10% and a management scale increase from 11.66 billion to 115.21 billion [4]. - The top holdings of Yongying Technology Smart Selection A include stocks like Xinyi Technology, Zhongji Xuchuang, and Tianfu Communication, all of which recorded significant gains, contributing to the fund's high performance [4][6]. Group 2 - Another notable fund, China Europe Digital Economy A, achieved a year-to-date return of 138.72%, with its scale growing from 15.27 billion to 130.21 billion, indicating strong capital inflow [5]. - The top holdings of China Europe Digital Economy A include Xinyi Technology, Alibaba-W, and Zhongji Xuchuang, with many of these stocks also showing over 50% gains in the third quarter [5]. - The concentration of certain core stocks across multiple "doubling funds" indicates a strong market consensus and capital concentration in high-growth sectors [5]. Group 3 - The third quarter saw a continuation of strong performance in high-growth stocks, with Xinyi Technology rising by 187.96%, Tianfu Communication by 110.76%, and Huadian Shares by 72.55%, which were key drivers for the "doubling funds" [6]. - The acceleration of the AI industry has become a dominant theme, with major tech companies rapidly advancing their commercialization processes and investing heavily in data centers and computing power [8]. - The investment landscape for computing power is evolving, with predictions for significant developments in the industry by 2026, particularly in optical communication and PCB sectors, expected to see new technology convergence by 2027 [9].

Market Performance - The component sector increased by 6.04% on October 27, with Shenghong Technology leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Top Gainers - Shenghong Technology (300476) closed at 340.32, up 10.14% with a trading volume of 690,400 shares and a transaction value of 22.707 billion [1] - Jingwang Electronics (603228) closed at 70.17, up 10.00% with a trading volume of 505,500 shares and a transaction value of 3.461 billion [1] - Shengyi Technology (600183) closed at 64.35, up 10.00% with a trading volume of 726,900 shares and a transaction value of 4.545 billion [1] Other Notable Performers - Other significant gainers included: - Shengjie Electronics (688183) at 96.83, up 8.87% [1] - Dongshan Precision (002384) at 74.47, up 7.69% [1] - Pengding Holdings (002938) at 56.47, up 6.87% [1] Market Capital Flow - The component sector saw a net inflow of 2.584 billion from main funds, while retail funds experienced a net outflow of 999 million [2] - The main funds' net inflow and retail funds' net outflow indicate a shift in investor sentiment towards larger institutional investments [2] Individual Stock Fund Flow - Shenghong Technology had a main fund net inflow of 1.016 billion, while retail funds saw a net outflow of 357 million [3] - Jingwang Electronics experienced a main fund net inflow of 656 million, with retail funds showing a net outflow of 418 million [3] - Dongshan Precision had a main fund net inflow of 627 million, while retail funds had a net outflow of 545 million [3]

Group 1 - The core viewpoint of the news is that Huadian Co., Ltd. has seen a significant increase in its stock price, rising by 5.05% to 76.80 yuan per share, with a total market capitalization of 147.76 billion yuan [1] - Huadian Co., Ltd. is primarily engaged in the research, production, and sales of printed circuit boards (PCBs), with PCB business revenue accounting for 95.98% of its total revenue [1] - The company was established on April 14, 1992, and went public on August 18, 2010 [1] Group 2 - Red Soil Innovation Fund has a significant holding in Huadian Co., Ltd., with its fund holding 235,600 shares, representing 5.47% of the fund's net value, making it the fourth-largest holding [2] - The Red Soil Innovation Emerging Industry Mixed Fund (001753) has achieved a year-to-date return of 133.45%, ranking 7th out of 8,226 in its category [2] - The fund manager, Liao Xinghao, has been in charge for 3 years and 340 days, with the best fund return during his tenure being 70.52% [2]

Core Insights - On October 27, Huadian Co., Ltd. saw a stock price increase of 5.05%, reaching 76.80 CNY per share, with a trading volume of 3.916 billion CNY and a turnover rate of 2.69%, resulting in a total market capitalization of 147.762 billion CNY [1] Company Overview - Huadian Co., Ltd. is located in Yushan Town, Kunshan City, Jiangsu Province, and was established on April 14, 1992. The company was listed on August 18, 2010. Its main business involves the research, development, production, and sales of printed circuit boards (PCBs) [1] - The revenue composition of the company is as follows: PCB business accounts for 95.98% of total revenue, while other supplementary businesses contribute 4.02% [1] Fund Holdings - According to data from the top ten holdings of funds, one fund under Huafu Fund has a significant position in Huadian Co., Ltd. The Huafu Small and Medium Enterprises 100 Index Enhanced Fund (410010) reduced its holdings by 3,600 shares in the second quarter, retaining 6,000 shares, which represents 2.57% of the fund's net value, ranking as the tenth largest holding [2] - The Huafu Small and Medium Enterprises 100 Index Enhanced Fund was established on December 9, 2011, with a latest scale of 9.9295 million CNY. Year-to-date returns stand at 29.78%, ranking 1712 out of 4219 in its category; the one-year return is 30.02%, ranking 1557 out of 3877; and since inception, the return is 38.52% [2] - The fund manager, Li Xiaohua, has been in charge for 4 years and 175 days, with the total asset scale of 11.675 billion CNY. During his tenure, the best fund return was 100.29%, while the worst was -19.19% [2]

Group 1 - The core focus of several fund managers in Q3 has been on PCB leading stocks, particularly East Mountain Precision, with notable increases in holdings by prominent funds [2][3] - The fund "Yongying Technology Smart Select" has shown significant performance, with a year-to-date return exceeding 200%, and has heavily invested in the PCB sector and optical module leaders [3][5] - Fund managers have expressed confidence in the A-share market, highlighting the potential for further asset allocation towards equity due to favorable domestic fiscal and monetary policies [10][11] Group 2 - Fund managers have adjusted their portfolios, with some reducing holdings in optical module leaders while increasing investments in the robotics industry [6][7] - The "Yongying Technology Smart Select" fund has seen its net asset value growth rate approach 100%, leading to a substantial increase in fund size from 11.66 billion to 115.21 billion [12] - There is a growing interest in Hong Kong stocks, with funds increasing their positions in companies like Alibaba and various biotech firms, reflecting a dual focus on technology and recovery sectors [9]