Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported strong Q2 2025 results with record-high sales and improved profit margins, particularly in its core PCB business. Revenue reached 5.7 billion RMB, marking a 30% year-over-year and 19% quarter-over-quarter increase, exceeding Bloomberg consensus estimates by 6%. Net profit was 869 million RMB, up 43% year-over-year and 77% quarter-over-quarter, surpassing Bloomberg estimates by 41%. The gross margin improved by 2.8 percentage points to 27.6%, while the net margin reached a historical high of 15.5% [1] - The company's strategic positioning in high-growth sectors such as AI servers, data centers, and automotive electronics supports the "Buy" rating. Continuous capacity expansion from projects in Thailand and Nantong, along with stable R&D investment at 6%-7% of sales, will reinforce the company's competitive advantage and long-term growth [1] - The target price has been raised to 235 RMB, reflecting an 18.7% potential upside from the current price of 198 RMB [3] Financial Summary - For FY25E, the company is projected to achieve sales revenue of 22.68 billion RMB, a 26.6% year-over-year increase. The gross margin is expected to be 26.9%, and net profit is forecasted at 3.03 billion RMB, representing a 61.4% increase year-over-year [2][15] - The company’s EPS is expected to rise to 5.91 RMB in FY25E, with a P/E ratio of 33.5 times [2][15] - The company’s market capitalization is approximately 101.55 billion RMB, with a 52-week stock price range of 198.00/67.53 RMB [3][14] Business Segment Performance - The PCB business, accounting for 60% of total sales, achieved revenue of 6.3 billion RMB in the first half of the year, a 29% year-over-year increase. The growth was driven by strong demand in wireless communication infrastructure, data centers, and automotive applications [8] - The packaging substrate segment saw sales of 1.7 billion RMB, a 9% year-over-year increase, but faced margin pressure due to rising raw material costs and capacity ramp-up challenges [8] Market Comparison - The company’s P/E ratio is projected to be higher than the historical average, reflecting the industry's upward cycle momentum. The new target price is based on a 33.7 times P/E for FY26E, which is approximately one standard deviation above the five-year historical average [8]

Core Viewpoint - The stock price of ShenNan Circuit (002916.SZ) continues to rise, nearing the 200 yuan mark, with a significant increase of over 20% in the past three trading days, reflecting strong market confidence and positive business fundamentals [2][3][5]. Financial Performance - In the first half of 2025, ShenNan Circuit achieved operating revenue of 10.453 billion yuan, a year-on-year increase of over 25%, and a net profit attributable to shareholders of 1.360 billion yuan, up nearly 38% [3][9]. - The company's revenue and net profit have shown consistent growth, with the operating revenue and net profit in the first half of 2025 increasing 2.83 times and 4.4 times, respectively, compared to the same period in 2017 [10]. Stock Market Activity - ShenNan Circuit's stock price has increased significantly since its IPO on December 13, 2017, with a cumulative increase of 22 times when adjusted for stock splits [6]. - As of the end of the second quarter of 2025, funds held a total of 75.39 million shares of ShenNan Circuit, marking a net increase of 45.44 million shares from the previous quarter, the highest level since the company's listing [7][8]. Research and Development - The company invested 672 million yuan in R&D in the first half of 2025, accounting for 6.43% of its operating revenue, with ongoing progress in various R&D projects [3][10]. - ShenNan Circuit is focusing on next-generation communication, data center, and automotive electronics PCB technology development, as well as expanding its production capacity in both existing and new facilities [10][11]. Expansion Plans - ShenNan Circuit is advancing its expansion plans, including a factory in Thailand that has begun trial production, with an investment of 1.274 billion yuan [4][11].

New Stock Issuance - New stock issuance for AiFenda (301575) is priced at 27.69 RMB, effective from September 1, 2025[1] - Fushun Special Steel (600399) is undergoing a tender offer from August 12 to September 10, 2025[1] - KaiPu Cloud (688228) has a recent announcement regarding its stock[1] Market Alerts - Significant abnormal fluctuations reported for Siquan New Materials (301489) on August 22, 2025[1] - New announcements for various stocks including Xinhua Jin (600735) and Jishi Media (601929) on August 30, 2025[1] - Multiple stocks including ST Guohua (000004) and ST Huayang (603825) have recent updates as of August 29, 2025[1] Trading Insights - The report includes links to detailed announcements for stocks experiencing significant market activity, such as ST Zhongji (000972) and ST Yilanzhong (300096)[1] - The document highlights the importance of monitoring stock performance and related announcements for investment decisions[1]

Group 1 - The report on overseas mutual funds indicates that as of March 31, 2025, there were 1,532 mutual funds holding A-shares with a total scale of $1.9 trillion, showing a slight decrease in both number and scale compared to previous periods [9][10][11] - The performance of overseas mutual funds investing in A-shares was notably differentiated, with active funds outperforming passive funds, achieving an average return of 0.51% and a median return of 0.28% [10] - The report highlights that overseas mutual funds increased their holdings in the home appliance, transportation, and computer sectors while reducing their investments in power equipment and new energy sectors [10][11] Group 2 - The report on Shenzhen Circuit (002916.SZ) forecasts revenue for 2025-2027 to be 22.134 billion, 26.330 billion, and 30.087 billion yuan respectively, with net profit expected to be 3.273 billion, 4.278 billion, and 5.154 billion yuan [12] - The target market capitalization for Shenzhen Circuit in 2026 is projected to be 162.572 billion yuan, with a target price of 243.83 yuan, and the report initiates coverage with a "buy" rating [12] - The report emphasizes the company's strong position in the PCB market, particularly in data center and communication sectors, with significant growth potential driven by advancements in AI and high-speed communication technologies [13][14] Group 3 - The report on Tunan Co., Ltd. (300855.SZ) indicates that the company is one of the few in China capable of mass-producing both deformed and cast high-temperature alloys, with a focus on aerospace and nuclear power applications [17][18] - The company is expected to achieve a revenue growth rate of 25.10% and a net profit growth rate of 25.10% from 2020 to 2024, with projected revenues of 1.258 billion yuan and net profits of 267 million yuan in 2024 [17] - Tunan's order backlog reached a historical high of 1.75 billion yuan as of the first half of 2025, reflecting a year-on-year increase of 236.5% [18] Group 4 - Alibaba's self-developed AI chips are aimed at meeting its own AI inference needs, with a planned investment of 380 billion yuan over the next three years to enhance its AI capabilities [20][21] - The report notes that Alibaba's AI inference chip, Hanguang 800, has surpassed NVIDIA's T4 and P4 in certain performance metrics, indicating a strong competitive position in the AI chip market [20] - The report highlights the potential for growth in power supply and liquid cooling technologies as major cloud service providers increase their investment in AI chips [22]

深南电路涨1.04%，报200.06元/股，股价再创新高，总市值突破1333.88亿元，成交额达1.46亿元。 ...

Summary of Shennan Circuits Earnings Call Company Overview - **Company**: Shennan Circuits - **Industry**: PCB (Printed Circuit Board) and IC (Integrated Circuit) substrates manufacturing - **Market Position**: Fourth-largest PCB manufacturer globally as of 2024 [16] Key Financial Results - **Q2 2025 Revenue**: Rmb 5.7 billion, representing an increase of 18.6% QoQ and 30.1% YoY, exceeding consensus estimates by 4% and 6% [2][9] - **Net Profit**: Rmb 869 million, up 77% QoQ and 43% YoY; adjusted net profit (after non-recurring items) was Rmb 780 million, reflecting a 61% QoQ and 37% YoY increase [2][9] - **Gross Profit Margin (GPM)**: Improved to 27.6%, a record high since Q3 2020, up 2.9 percentage points QoQ and 0.5 percentage points YoY [3][9] Revenue Growth Drivers - **PCB Sales Growth**: Increased by 29% YoY, driven by robust demand in data centers, wired communications, and automotive sectors [3] - **Data Center PCB**: Significant growth attributed to global AI capital expenditure upcycle, with revenue mix exceeding 25% compared to 20% in FY24 [3] - **IC Package Substrate Sales**: Rose by 9% YoY, supported by better BT substrate orders due to tight raw material supply [3] Operational Insights - **Utilization Rates**: High utilization rates for both PCB and BT substrates, with ongoing efforts to ramp up production capacity at new plants in Thailand and Nantong [4] - **Future GPM Expectations**: Anticipated recovery of GPM by 4-5 percentage points in H2 2025 [4] Market Outlook - **AI-Related Orders**: Management maintains a positive outlook for AI-related orders, particularly from North American customers, expecting data center revenue to lead growth in 2025 [4] - **Supply Constraints**: The company is currently supply-constrained for high-end PCBs, indicating potential for future growth as capacity expands [4] Investor Sentiment - **Expected Market Reaction**: Anticipated positive reaction from investors due to the earnings beat and favorable outlook for the second half of the year, following significant stock price increases since April [5] Valuation Metrics - **Market Capitalization**: Rmb 86.9 billion (approximately US$12.1 billion) [6] - **12-Month Price Target**: Rmb 171.00, with a current price of Rmb 169.50 [6][31] - **P/E Ratio (2025E)**: 34.3x, with projected EPS of Rmb 4.94 [8] Risks and Considerations - **Downside Risks**: Include slower-than-expected server demand, pricing pressure from clients, and longer breakeven times for new business segments [17] Conclusion Shennan Circuits demonstrated strong financial performance in Q2 2025, driven by robust demand in key sectors, particularly data centers and AI-related applications. The company is well-positioned for future growth, although it faces supply constraints and market risks that could impact its performance.

西部证券股份有限公司给予深南电路股份有限公司买进的初始评级。目标价243.83元人民币，即上涨 23%。深南电路股份有限公司在8月27日公布的季度盈利和营收超过预期。 ...

Group 1 - The company announced that its stock price has deviated significantly, with a cumulative increase of over 20% in closing prices over three consecutive trading days, indicating abnormal trading fluctuations [2] - The company's operational situation remains normal, and there have been no significant changes in the internal and external operating environment [2] - There are no undisclosed significant matters related to the company by the company, its controlling shareholders, or actual controllers, nor are there any significant matters in the planning stage [2]

深南电路发布异动公告称，公司股票连续三个交易日内日收盘价涨幅偏离值累计超过20%，属于股票交 易异常波动情形。近期公司经营情况正常，内外部经营环境未发生重大变化。公司、控股股东和实际控 制人不存在关于本公司的应披露而未披露的重大事项，或处于筹划阶段的重大事项。股票交易异常波动 期间控股股东、实际控制人不存在买卖公司股票的情形。 ...

证券代码：002916 证券简称：深南电路 公告编号：2025-031 深南电路股份有限公司 大事项，或处于筹划阶段的重大事项。 形。 三、是否存在应披露而未披露信息的说明 本公司董事会确认，本公司目前没有任何根据深圳证券交易所《股票上市规 则》等有关规定应予以披露而未披露的事项；董事会也未获悉本公司有根据深圳 证券交易所《股票上市规则》等有关规定应予以披露而未披露的、对本公司股票 及其衍生品种交易价格产生较大影响的信息；公司前期披露的信息不存在需要更 正、补充之处。 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、股票交易异常波动的具体情况 深南电路股份有限公司（以下简称"公司"）（证券代码：002916；证券简称： 深南电路）连续三个交易日内（2025年8月27日至2025年8月29日）日收盘价涨幅 偏离值累计超过20%，根据《深圳证券交易所交易规则》的相关规定，属于股票 交易异常波动情形。 二、股票交易异常波动的核实情况说明 针对公司股票交易异常波动，公司董事会对公司、控股股东及实际控制人就 相关事项进行了核实，现就有关情况说明如下： 较大影响的未公 ...