Core Viewpoint - Huada Technology Co., Ltd. (沪电股份) is planning a potential Hong Kong IPO with a target fundraising amount of at least $1.5 billion to optimize its overseas business layout and diversify financing channels [1][2]. Group 1: IPO Plans - Huada Technology is collaborating with banks for a potential Hong Kong listing, with the issuance scale and timing still under discussion [1]. - The company has selected China International Capital Corporation (中金公司) and HSBC to manage the stock issuance [1]. Group 2: Business Performance - In the first half of 2025, Huada Technology's export revenue reached 6.893 billion yuan, a year-on-year increase of 48.59%, accounting for 81.16% of total revenue [2]. - The company has been recognized as one of the top brands in the PCB industry, consistently listed among the top 100 PCB companies by various industry associations and research institutions [1]. Group 3: Investment and Expansion - In 2022, Huada Technology invested $280 million to establish a manufacturing facility in Thailand, which commenced operations on April 1, 2023 [2]. - The Thailand production base is expected to enter small-scale production in the second quarter of 2025 [2].

Core Viewpoint - Huada Technology Co., Ltd. (沪电股份) is planning a potential Hong Kong IPO with a target fundraising amount of at least $1.5 billion to optimize its overseas business layout and diversify financing channels [1][2] Group 1: Company Overview - Huada Technology specializes in the production, sales, and related after-sales services of printed circuit boards (PCBs) and is recognized as a significant brand in the PCB industry [1] - The company has been consistently listed among the top 100 PCB enterprises by various industry associations and research institutions [1] Group 2: Financial Performance - In the first half of 2025, Huada Technology's export revenue reached 6.893 billion yuan, representing a year-on-year growth of 48.59%, with exports accounting for 81.16% of total revenue [2] Group 3: Investment and Expansion - In 2022, Huada Technology invested $280 million to establish a manufacturing facility in Thailand, which commenced construction on April 1, 2023 [2] - The Thailand production base is expected to enter small-scale production in the second quarter of 2025 [2]

Core Viewpoint - On October 14, Huadian Co., Ltd. experienced a decline of 5.05%, with a stock price of 66.94 yuan per share, a trading volume of 2.714 billion yuan, a turnover rate of 2.04%, and a total market capitalization of 128.791 billion yuan [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 - From the perspective of major fund holdings, one fund under Dacheng Fund has a significant position in Huadian Co., Ltd. The Dacheng Technology Innovation Mixed A Fund (008988) held 402,800 shares in the second quarter, representing 5.23% of the fund's net value, making it the ninth-largest holding [2] - The Dacheng Technology Innovation Mixed A Fund was established on April 29, 2020, with a latest scale of 157 million yuan. Year-to-date, it has achieved a return of 103.62%, ranking 26th out of 8162 in its category. Over the past year, it has returned 121.22%, ranking 31st out of 8015 [2] - The fund manager, Guo Weiling, has been in position for 4 years and 263 days, with a total asset scale of 328 million yuan. The best fund return during his tenure is 62.99%, while the worst return is -20.74% [2]

Core Viewpoint - The company Huadian Co., Ltd. has reportedly selected banks to arrange for its listing in Hong Kong [1] Group 1 - The decision to pursue a Hong Kong listing indicates the company's strategy to access international capital markets [1] - The involvement of banks suggests a structured approach to the listing process, potentially enhancing investor confidence [1]

Group 1 - The core point of the news is that Huadian Co., Ltd. experienced a significant stock decline of 6.05%, with its share price at 68.36 yuan and a total market capitalization of 131.524 billion yuan as of the report date [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 is located in Kunshan, Jiangsu Province, and was established on April 14, 1992, with its listing date on August 18, 2010 [1] Group 2 - From the perspective of fund holdings, Huafu Fund has a significant position in Huadian Co., Ltd., with its Huafu Small and Medium Enterprises 100 Index Enhanced Fund reducing its holdings by 3,600 shares in the second quarter, now holding 6,000 shares, which represents 2.57% of the fund's net value [2] - The Huafu Small and Medium Enterprises 100 Index Enhanced Fund has a total scale of 9.9295 million yuan and has achieved a year-to-date return of 30.9%, ranking 1750 out of 4220 in its category [2] - The fund manager, Li Xiaohua, has been in charge for 4 years and 161 days, with the best fund return during his tenure being 94.01% and the worst being -19.88% [2]

Investment Rating - The report suggests to continue focusing on investment opportunities within the communication industry [2] Core Insights - The communication industry showed steady revenue growth and accelerated profitability in H1 2025, with total revenue reaching 1785.003 billion yuan, a year-on-year increase of 10.07%, and net profit attributable to shareholders at 160.432 billion yuan, up 11.26% year-on-year [4][7] - The AI computing industry chain is expected to continue accelerating its development in 2025, benefiting the communication industry [17][19] Summary by Sections H1 2025 Performance Overview - The communication industry achieved a total revenue of 1785.003 billion yuan in H1 2025, with a year-on-year growth of 10.07%, and a net profit of 160.432 billion yuan, reflecting an 11.26% increase [4][7] Segment Performance Changes - In H1 2025, the optical module and device segment reported revenue of 47.988 billion yuan, a year-on-year increase of 64.88%, and net profit of 10.876 billion yuan, up 111.99% [25] - The communication PCB segment achieved revenue of 57.249 billion yuan, a year-on-year increase of 37.66%, and net profit of 8.058 billion yuan, up 80.79% [31] - The network equipment segment generated revenue of 507.111 billion yuan, a year-on-year increase of 28.86%, with net profit of 19.184 billion yuan, up 19.57% [37] AI Industry Chain Investment - Major overseas cloud companies are expected to maintain optimistic growth in capital expenditures, with a total of 95 billion USD in Q2 2025, reflecting an 82.96% year-on-year increase [17] - Companies like Oracle and Nvidia are showing strong growth prospects in their AI-related businesses, with Oracle's unfulfilled revenue reaching 455 billion USD, a year-on-year increase of 359% [22][19]

Investment Rating - The report maintains a "stronger than the market" rating for the electronic industry, indicating a positive outlook for the sector [2][31]. Core Viewpoints - The report expresses optimism regarding the overall opportunities in the computing power and storage industry chains, particularly focusing on domestic computing power and storage sectors. It highlights improvements in supply-side conditions for domestic computing chips and increasing demand driven by AI-related capital investments [2][31]. - The report anticipates a significant increase in demand for DRAM and NAND due to the continuous release of large models, with expectations for a major expansion year for storage in the upcoming year [2][31]. Summary by Sections Market Review - The electronic industry outperformed the overall market during the week of September 29-30, with the Shenwan Electronic Index rising by 2.78%, ranking 6th among 31 Shenwan industries. Year-to-date, the index has increased by 53.51%, ranking 3rd [12][31]. Weekly Focus - OpenAI's release of the Sora 2 model is expected to significantly increase demand for computing and storage capabilities. Additionally, Samsung and SK Hynix have signed an agreement to supply memory chips for OpenAI's data centers, indicating a growing collaboration in the AI sector [25][27]. - The report notes that Longxin Technology is progressing towards its IPO, which is anticipated to enhance its market presence in the DRAM sector [29][30]. - The report also mentions that major DRAM manufacturers have paused pricing for a week, which may lead to a price increase of over 30% in the fourth quarter [30][31]. Industry Opportunities - The report emphasizes the potential in the domestic computing power chain, highlighting key players such as Cambricon, Haiguang Information, and Chipone. It also points out the expected growth in the storage sector, particularly for NAND and DRAM, driven by new product launches from Yangtze Memory Technologies and Longxin [2][31]. - The overseas computing power chain is also noted for its rapid growth, with significant capacity expansions expected in PCB manufacturing [31]. Valuation - As of October 9, 2025, the electronic industry's valuation (PE-TTM) stands at 67.72 times, which is considered to be at a historical mid-level [20][23].

Core Viewpoint - On September 30, Huadian Co., Ltd. experienced a decline of 1.13% in stock price with a trading volume of 2.688 billion yuan, indicating a high level of trading activity and investor interest in the company [1] Financing Summary - On the same day, Huadian Co., Ltd. had a financing purchase amount of 270 million yuan and a repayment of 310 million yuan, resulting in a net financing outflow of 40.39 million yuan [1] - As of September 30, the total margin trading balance for Huadian Co., Ltd. was 2.308 billion yuan, with a financing balance of 2.297 billion yuan, accounting for 1.63% of the circulating market value, which is above the 90th percentile of the past year [1] - The company also had a short selling activity where 10,300 shares were repaid and 8,000 shares were sold short, with a short selling amount of 587,800 yuan, and a remaining short selling balance of 111.75 million yuan, also above the 90th percentile of the past year [1] Financial Performance - For the first half of 2025, Huadian Co., Ltd. reported a revenue of 8.494 billion yuan, representing a year-on-year growth of 56.59%, and a net profit attributable to shareholders of 1.683 billion yuan, which is a 47.50% increase year-on-year [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 in the last three years [2] Shareholder Structure - 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, while the average circulating shares per person increased by 67.18% to 14,997 shares [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the third largest with 123 million shares, an increase of 47.197 million shares from the previous period [3] - Other notable shareholders include Huatai-PB CSI 300 ETF and E Fund CSI 300 ETF, which have also increased their holdings [3]

Core Insights - The HDI board market is experiencing significant growth driven by global digital transformation and the trend towards electric and intelligent vehicles. China, as a major manufacturing and consumption market, is seeing rapid development in the HDI board industry, with a projected market size of 45.568 billion yuan in 2024, reflecting a year-on-year increase of 16.5% [1][6]. - The market is expected to continue expanding, reaching 50.908 billion yuan by 2025, with an 11.7% year-on-year growth [1][6]. Industry Overview - HDI boards, or High-Density Interconnect boards, utilize micro-blind buried hole technology and lamination processes to enhance circuit density, catering to the miniaturization and high-speed signal transmission needs of electronic products. They are primarily used in mobile phone motherboards, digital devices, and automotive electronics [3][4]. - The HDI board industry can be categorized into three types based on lamination complexity: low-end HDI (single lamination), high-end HDI (two or more laminations), and any-layer HDI (most complex) [3]. Market Size and Growth - The global HDI board market is projected to reach 12.8 billion USD in 2024, with a year-on-year increase of 15.3%, and is expected to grow to approximately 14.3 billion USD by 2025 [5][6]. Competitive Landscape - The HDI board industry is dominated by overseas and Taiwanese manufacturers, while mainland Chinese companies are rapidly catching up. Key players in mainland China include companies like Fangzheng Technology, Bomin Electronics, and Shenghong Technology, which are increasing their R&D investments and expanding high-end production capacities [7][8]. Development Trends - The HDI board market is shifting towards higher-end products, driven by the demand for advanced mobile devices and the adoption of AnyLayer HDI motherboards in Android smartphones. The trend indicates a growing need for high-layer HDI boards as high-end smartphone sales increase [9]. - The application fields for HDI boards are expanding, particularly in the rising electric vehicle sector, which requires stable and reliable circuit connections for various systems [10]. Additionally, the medical device sector is also a growing market for HDI boards due to the demand for miniaturized and intelligent devices [11]. - Environmental considerations are leading to a trend towards green manufacturing practices in the HDI board industry, with a focus on reducing harmful substances and optimizing production processes [12].

Core Viewpoint - Emphasis on the valuation expansion of domestic wafer foundries, driven by intensified demand and a price increase cycle in the storage sector [2] Market Performance - In the week before the holiday, the Shanghai Composite Index rose by 0.21%, while the electronics sector increased by 3.51%, with semiconductors up by 7.64%. In contrast, the Hang Seng Tech Index fell by 1.58% [2] - During the holiday period, Hong Kong's semiconductor sector performed well, with domestic foundries SMIC and Hua Hong Semiconductor reaching historical highs [2] Semiconductor Industry Insights - Domestic wafer foundry capabilities are advancing in both quantity and quality, driven by the growing demand for AI computing power and enhanced high-end chip design capabilities [2] - The increasing procurement by major companies like Deepseek, Alibaba, and Tencent highlights the necessity and scarcity of domestic high-end chip foundry capabilities [2] Storage Market Dynamics - The AI application Sora gained significant popularity during the holiday, and OpenAI partnered with AMD to expand computing power, indicating a competitive arms race among internet giants [2] - The NAND market is expected to see a rise in both volume and price due to increased demand from AI inference, with predictions of a 5-10% increase in contract prices for NAND Flash products in Q4 2025 [2] Capacity Growth Projections - From 2024 to 2028, China's wafer fab capacity is projected to grow at a CAGR of 8.1%, surpassing the global average of 5.3% [3] - The capacity growth for mainstream nodes (22nm-40nm) is expected to be particularly strong, with a CAGR of 26.5% [3] Company Developments - Yangtze Memory Technologies Co. (YMTC) completed its restructuring and is poised for expansion, with its valuation exceeding 160 billion yuan [4] - The establishment of the third phase of YMTC is expected to boost orders for domestic front-end equipment companies [4] AI Infrastructure Investments - Alibaba Cloud is accelerating its transformation into a full-stack AI service provider, with a three-year plan to invest 380 billion yuan in AI infrastructure [5] - The launch of the new AI server, designed to support multiple AI chips, reflects the growing demand for AI solutions [5] Investment Recommendations - Continued focus on domestic semiconductor companies such as SMIC, Hua Hong Semiconductor, and various storage firms like Demingli and Jiangbolong is advised [2][3][4] - In the consumer electronics sector, companies like Industrial Fulian and Xiaomi Group are highlighted for potential investment [6]