Investment Rating - The investment rating for Shennan Circuits is "Buy" with a 12-month target price of Rmb152, indicating a potential upside of 40% from the current price of Rmb108.6 [9][12]. Core Insights - Shennan Circuits is positioned as a key supplier in the high-end PCB market in China, benefiting from domestic AI infrastructure investments, which are expected to drive robust revenue and net profit growth [9]. - The company is experiencing a strong demand for AI-related products, with overall PCB capacity utilization exceeding 90% and AI-related capacity running at full production [3][9]. - The ABF business is in the early ramp-up stage, with expectations of narrowing losses in 2025 due to cost control and increased revenue [4][9]. Summary by Sections Raw Material Costs - Raw material costs, particularly for gold and copper-related materials, are on the rise, prompting Shennan to negotiate prices with suppliers. Gold-related materials account for less than 10% of total procurement [2][9]. - Management plans to pass some of the cost increases to customers due to high overall demand and utilization levels [2]. PCB Outlook - The demand for PCBs is robust, driven by local AI needs, including AI accelerators and high-speed optical transceivers. This demand is expected to improve the product mix and gross margin outlook into 2Q~3Q25 [3][9]. ABF Business Status - The Guangzhou ABF plant reported a pre-tax loss of Rmb550 million in 2024, but management anticipates a reduction in losses for 2025, projecting revenues of over Rmb100 million [4][9]. - Monthly depreciation costs are expected to remain below Rmb30 million, with current costs at Rmb25 million [6][9]. Financial Projections - Revenue projections show a growth trajectory from Rmb17,907 million in 2024 to Rmb26,694 million by 2027, with net income expected to rise from Rmb1,879 million in 2024 to Rmb4,014 million in 2027 [7][12].

Group 1: Company Operations and Capacity Utilization - The company's overall business operations are normal, with a comprehensive capacity utilization rate remaining relatively high. The PCB business benefits from sustained demand in computing power and automotive electronics, maintaining high capacity utilization [1] - The packaging substrate business has seen an improvement in capacity utilization due to a relative recovery in the storage sector compared to Q4 2024 and Q1 2025 [1] Group 2: PCB Business Applications and Trends - The PCB business focuses on high-end PCB product design, development, and manufacturing, primarily serving communication devices, data centers, automotive electronics, and industrial control sectors [1] - The demand for PCB products in high-speed communication networks, data center switches, AI accelerator cards, and memory has increased due to the urgent need for high computing power and high-speed networks [2] Group 3: Expansion Plans and Investments - The company has factories in Shenzhen, Wuxi, Nantong, and a factory under construction in Thailand. It is enhancing capacity through technological upgrades and is progressing with the Nantong Phase IV project to establish an HDI technology platform [3] - The total investment for the Thailand factory is 1.274 billion RMB, aimed at developing high-layer and HDI PCB technology to expand overseas market reach [4] Group 4: Packaging Substrate Business Development - The packaging substrate products cover a wide range, including module packaging substrates and storage packaging substrates, with demand improving in Q1 2025 compared to Q4 2024, primarily driven by increased demand for storage products [5] - The FC-BGA packaging substrate has achieved mass production capability for products with 20 layers or fewer, while R&D for products with more than 20 layers is progressing on schedule [6] Group 5: Raw Material Price Changes - In Q1 2025, the prices of key raw materials such as copper-clad laminates and gold salts have increased year-on-year and compared to Q4 2024, influenced by commodity price fluctuations [7]

Investment Rating - The report maintains a "Buy" rating for Shennan Circuits, with a 12-month target price of Rmb152, indicating a potential upside of 40% from the current price of Rmb108.6 [10][13]. Core Insights - Shennan Circuits is positioned as a key beneficiary of China's domestic AI infrastructure investments, expecting robust revenue and net profit growth as local equipment vendors increase their server and networking shipments [10]. - The overall PCB capacity utilization rate is reported at over 90%, with AI-related capacity running at full production due to strong demand from AI servers and networking [3][10]. - The company is facing rising raw material costs, particularly for gold and copper-related materials, but management plans to pass some of these costs onto customers due to high demand [2][3]. Summary by Sections Raw Material Costs - Gold-related raw materials prices are increasing, driven by rising gold prices, while copper-related materials also face high cost pressures [2]. - Gold-related materials account for less than 10% of total procurement at Shennan, allowing some flexibility in cost absorption [2]. PCB Outlook - The demand for PCBs is robust, particularly from local AI applications, including AI accelerators and high-speed optical transceivers [3]. - Management anticipates an improving gross margin outlook into Q2 and Q3 of 2025 due to a favorable product mix driven by AI demand [3]. ABF Business Status - The Guangzhou ABF plant incurred a pre-tax loss of Rmb550 million in 2024, but management expects losses to narrow in 2025 with improved cost control and revenue growth [4][7]. - Monthly depreciation costs at the Guangzhou ABF plant are projected to remain below Rmb30 million, with current costs at Rmb25 million [7]. Financial Projections - Revenue projections show a growth trajectory from Rmb17.9 billion in 2024 to Rmb26.7 billion by 2027, with net income expected to rise from Rmb1.9 billion to Rmb4 billion in the same period [8][10]. - The gross margin is expected to improve from 24.8% in 2024 to 27.2% by 2027, reflecting better operational efficiency and product mix [8].

Group 1 - The core viewpoint of the articles highlights the increasing demand for high-performance PCB products driven by advancements in AI technology and the growing needs of the electronic industry for high computing power and fast networks [1] - The PCB business of the company is benefiting from trends in high-speed communication networks, data center switches, AI accelerator cards, and memory products since 2024 [1] - The company reports that its overall business operations are normal, with a relatively high capacity utilization rate, particularly in the PCB sector due to sustained demand in computing power and automotive electronics [1] Group 2 - The company is engaged in the design, research, and manufacturing of high-end PCB products, focusing on applications in communication equipment, data centers, and automotive electronics, among others [2] - The company is upgrading existing PCB factories to enhance capacity and is progressing with the construction of its fourth phase project in Nantong to establish an HDI technology platform [2] - The total investment for the Thailand factory is 1.274 billion RMB, which is currently under orderly construction, aimed at expanding overseas market reach and meeting international customer demands [2] Group 3 - In the high-end packaging substrate sector, the company has achieved mass production capabilities for FC-BGA substrates with 20 layers or fewer, while ongoing R&D for products with more than 20 layers is on schedule [3] - The first phase of the Guangzhou packaging substrate project has commenced production in Q4 2023, with a steady increase in production capacity and acceptance of bulk orders for BT and some FC-BGA products [3] - The company is currently in the early stages of ramping up production capacity, which has led to increased costs and expenses, negatively impacting profitability [3]

Group 1: Company Operations and Capacity Utilization - The company's overall business operations are normal, with a comprehensive capacity utilization rate remaining relatively high. The PCB business benefits from sustained demand in computing power and automotive electronics, maintaining high capacity utilization [1] - The packaging substrate business has seen an improvement in capacity utilization due to a relative recovery in the storage sector compared to Q4 2024 and Q1 2025 [1] Group 2: PCB Business Applications and Trends - The PCB business focuses on high-end PCB product design, development, and manufacturing, primarily serving communication devices, data centers, automotive electronics, and industrial control sectors [1] - The demand for large-size, high-layer, high-frequency, high-speed, and high-heat dissipation PCB products has increased due to the urgent need for high computing power and high-speed networks in the electronic industry [2] Group 3: Expansion Plans and Investments - The company has factories in Shenzhen, Wuxi, Nantong, and a new factory under construction in Thailand. It is enhancing capacity through technological upgrades and is progressing with the Nantong Phase IV project to establish an HDI technology platform [3] - The total investment for the Thailand factory is 1.274 billion RMB, aimed at developing high-layer and HDI PCB technology to expand overseas market reach [4] Group 4: Product Development and Production Progress - The FC-BGA packaging substrate currently has mass production capabilities for products with 20 layers or fewer, with ongoing development for products exceeding 20 layers [5] - The Guangzhou packaging substrate project has begun production, with a steady increase in capacity, although it is still in the early stages of ramp-up, impacting profits negatively [5] Group 5: Raw Material Price Changes - Key raw materials include copper-clad laminates, prepregs, copper foil, gold salt, and inks. In Q1 2025, prices for some raw materials increased year-on-year due to commodity price fluctuations [6] - The company will continue to monitor international commodity prices and maintain communication with suppliers and customers regarding price changes [6]

Core Viewpoint - The company has achieved mass production capability for FC-BGA packaging substrates with 20 layers and below, featuring a minimum line width and spacing of 9/12μm [1] Group 1 - The company specializes in FC-BGA packaging substrates [1] - The current production capability includes products with 20 layers or fewer [1] - The minimum line width and spacing achieved is 9/12μm [1]

Fundraising Overview - The company has raised a total of RMB 2,529,664,782.94 through a non-public offering of 23,694,480 shares, approved by the China Securities Regulatory Commission [1] - The funds will be primarily used for the manufacturing project of high-end flip chip IC substrates, with a total investment of RMB 276,627,000 and planned fundraising of RMB 255,000,000 [1] Change of Project Implementation Entity - The company has approved a change in the project implementation entity for the high-end flip chip IC substrate manufacturing project from its wholly-owned subsidiary Wuxi Shennan to another wholly-owned subsidiary, Wuxi Guangxin Packaging Substrate Co., Ltd. [2] Fund Management and Storage - The company has revised its fundraising management system to ensure dedicated storage and usage of the raised funds, in compliance with relevant laws and regulations [2] - The management system includes provisions for fund storage, usage, project management, and supervision of investment projects [2] Fund Supervision Agreements - The company has signed tripartite and quadripartite supervision agreements with banks and underwriters to ensure proper management of the raised funds [3] - A new quadripartite supervision agreement was signed following the change of the project implementation entity [3] Fund Account Status - The company has closed several fundraising accounts, including those at China Bank and Agricultural Bank, as part of its fund management strategy [5] - The company has transferred RMB 54,764,800 from one of its fundraising accounts to its own funds and completed the account closure [6]

证券代码：002916 证券简称：深南电路 公告编号：2025-019 深南电路股份有限公司 关于注销非公开发行股票募集资金账户的公告 本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。 一、募集资金基本情况 经中国证券监督管理委员会《关于核准深南电路股份有限公司非公开发行股 票的批复》（证监许可〔2021〕4151 号）核准，深南电路股份有限公司（以下简 称"公司"）非公开发行人民币普通股 23,694,480 股，共计募集资金总额 2,549,999,937.60 元，扣除与发行有关的费用人民币 20,335,154.66 元，实际募集 资金净额为人民币 2,529,664,782.94 元。 上述募集资金的到位情况已经立信会计师事务所（特殊普通合伙）审验并出 具《深南电路股份有限公司验资报告》（信会师报字[2022]第 ZI10015 号）。公司 募集资金用于下列项目： 单位：万元 | 序号 | 项目名称 | 实施主体 | 项目 总投资 | 拟使用 募集资金 | | --- | --- | --- | --- | --- | | | 高阶倒装芯片用 IC | ...

Group 1: Company Operations and Capacity Utilization - The company's overall business operations are normal, with a comprehensive capacity utilization rate remaining relatively high. The PCB business benefits from sustained demand in computing power and automotive electronics, maintaining high capacity utilization [1] - The packaging substrate business has seen improved demand in the storage sector, with capacity utilization increasing compared to Q4 2024 and Q1 2025 [1] Group 2: Product Development and Project Progress - The company has achieved mass production capability for packaging substrates with up to 20 layers, and the technical development for products with over 20 layers is progressing as scheduled [1] - The Guangzhou packaging substrate project has entered its first phase, with production capacity steadily increasing and batch orders for BT and some FC-BGA products being accepted, although it is still in the early stages of capacity ramp-up [1][2] Group 3: Client Base and Market Position - The packaging substrate business serves a diverse client base, including IDM (Integrated Device Manufacturers), Fabless (semiconductor design companies), and OSAT (Outsourced Semiconductor Assembly and Test) manufacturers [3] Group 4: Expansion Plans and Technological Capabilities - The PCB business is expanding with factories located in Shenzhen, Wuxi, Nantong, and a new facility under construction in Thailand. The company is upgrading existing PCB factories to enhance capacity and is progressing with the Nantong Phase IV project to establish an HDI technology platform [4] - The company’s PCB business utilizes HDI technology, which allows for high-density wiring, primarily applied in communication, data centers, industrial control medical, and automotive electronics sectors [5] Group 5: Investment and Market Strategy - The total investment for the Thailand factory is 1.274 billion RMB, with construction progressing on schedule. The factory will have capabilities in high-layer and HDI PCB technologies, aiding in expanding overseas market reach [6] Group 6: Raw Material Price Trends - Key raw materials include copper-clad laminates, prepregs, copper foil, gold salts, and inks. In Q1 2025, prices for some raw materials, such as gold salts, increased year-on-year and compared to Q4 2024 due to commodity price fluctuations [7] Group 7: Compliance and Disclosure - The company adhered to the "Information Disclosure Management System" during the research process, ensuring no significant undisclosed information leaks occurred [8]

二、本次实施的利润分配及资本公积金转增股本方案 证券代码：002916 证券简称：深南电路 公告编号：2025-018 深南电路股份有限公司 2024 年年度权益分派实施公告 本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。 深南电路股份有限公司（以下简称"公司"），2024 年年度权益分派方案已获 2025 年 4 月 2 日召开的 2024 年年度股东大会审议通过，现将权益分派事宜公告 如下： 一、股东大会审议通过利润分配及资本公积金转增股本方案等情况 1、公司 2024 年年度股东大会审议通过的 2024 年度利润分配预案为：以利 润分配方案未来实施时股权登记日的股本总数为基数，向全体股东每 10 股派现 金人民币 15.00 元（含税）。同时，以资本公积金转增股本，向全体股东每 10 股 转增 3 股，不送股。若在分配方案披露后至实施前发生其他导致股本变动的情 形，公司将按照分配比例固定的原则对分配总额进行调整。 2、本次实施的分配方案与股东大会审议通过的分配方案一致；本分配方案 自披露至实施期间，公司股本总额未发生变化；本次权益分派距离股东大会通过 该 ...