Core Viewpoint - The report from Huazhong Securities indicates that Pengding Holdings achieved a net profit attributable to shareholders of 2.408 billion yuan in the first three quarters, representing a year-on-year growth of 21.95% [1] Financial Performance - In Q3 2025, the net profit attributable to shareholders was 1.175 billion yuan, showing a year-on-year decline of 1.30% but a quarter-on-quarter increase of 57.68% [1] - Total revenue for the first three quarters reached 16.754 billion yuan, with a year-on-year increase of 6%, accounting for 62% of the company's revenue [1] Business Structure and Growth - The communication board business, leveraging its technological and capacity advantages in flexible boards, has allowed the company to maintain its leading position in the industry [1] - The company's business structure has further optimized, with the revenue share of high value-added segments continuously increasing [1] Capital Expenditure and Future Outlook - The company actively promoted new capacity construction, with capital expenditures reaching 4.972 billion yuan in the first three quarters, an increase of nearly 3 billion yuan year-on-year [1] - As new capacities are gradually released, the computing power sector is expected to become an important pillar for the company's development [1] - The company maintains an "overweight" rating [1]

Core Viewpoint - The company is actively engaging in the AI market by developing high-end HDI products for AI servers and expanding collaborations with cloud server manufacturers to enhance competitiveness in the AI server market [2] Group 1: AI Business Strategy - The company is focusing on entering the AI server market with high-end HDI products and is progressing with product certifications alongside well-known manufacturers [2] - The company has established a comprehensive product matrix covering AI mobile phones, AI PCs, and AI glasses, becoming an essential part of the global AI endpoint product supply chain [2] Group 2: Collaborative Efforts - The company is expanding its development and cooperation with cloud server manufacturers on AI ASIC-related products to strengthen its market position [2] - The company is leveraging its ONE AVARY product platform to accelerate its full-chain layout in various fields, including AI servers, optical modules, switches, humanoid robots, and new energy vehicles [2]

Core Viewpoint - The electronic industry shows significant growth in Q3 2025, with a notable increase in net profit across various sub-sectors, particularly in satellite electronics, semiconductors, and AI supply chains [4]. Summary by Sections Overall Industry Performance - In Q3 2025, 650 companies in the electronic industry reported a total net profit of 163.7 billion yuan, reflecting a year-on-year increase of 40% and a quarter-on-quarter increase of 20% [4]. Sub-industry Performance - The top three sub-industries by year-on-year net profit growth in Q3 2025 are: - Satellite Electronics: 200 million yuan, +113% - Semiconductors: 22.11 billion yuan, +89% - AI Supply Chain: 22.06 billion yuan, +84% [4]. Detailed Sub-sector Growth - Among 74 detailed sub-sectors, the top five in terms of year-on-year net profit growth are: - LED-LED Power: 8 million yuan, +644% - LED-LED Display: 193 million yuan, +431% - Display-Equipment: 202 million yuan, +250% - Semiconductor-Digital GPU and CPU: 1.242 billion yuan, +242% - Semiconductor-Analog: 459 million yuan, +218% [4]. Leading Companies in the Electronic Industry - The top five companies by net profit and year-on-year growth in Q3 2025 are: - Industrial Fulian: 10.373 billion yuan, +62% - Cambricon Technologies: 567 million yuan, turned profitable - Haiguang Information: 760 million yuan, +13% - Luxshare Precision: 4.874 billion yuan, +32% - Hikvision: 3.662 billion yuan, +20% [5]. Semiconductor Sector Leaders - The leading companies in the semiconductor sub-industry for Q3 2025 are: - Cambricon Technologies: 567 million yuan, turned profitable - Haiguang Information: 760 million yuan, +13% - Northern Huachuang: 1.922 billion yuan, +14% - Zhongwei Company: 505 million yuan, +28% - OmniVision Technologies: 1.182 billion yuan, +17% [6]. AI Industry Chain Leaders - The top five companies in the AI industry chain for Q3 2025 are: - Industrial Fulian: 10.373 billion yuan, +62% - Cambricon Technologies: 567 million yuan, turned profitable - Zhongji Xuchuang: 3.137 billion yuan, +125% - Haiguang Information: 760 million yuan, +13% - Xinyi Sheng: 2.385 billion yuan, +205% [7]. Nvidia Supply Chain Performance - The leading companies in the Nvidia supply chain for Q3 2025 are: - Industrial Fulian: 10.373 billion yuan, +62% - Zhongji Xuchuang: 3.137 billion yuan, +125% - Shenghong Technology: 1.102 billion yuan, +261% - Shengyi Technology: 1.017 billion yuan, +131% - Huitian Technology: 1.035 billion yuan, +46% - Tianfu Communication: 566 million yuan, +76% [8]. Apple Supply Chain Performance - The top five companies in the Apple supply chain for Q3 2025 are: - Industrial Fulian: 10.373 billion yuan, +62% - Luxshare Precision: 4.874 billion yuan, +32% - Lens Technology: 1.700 billion yuan, +13% - Pengding Holdings: 1.175 billion yuan, -1% - GoerTek: 1.171 billion yuan, +5% [9].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 26.855 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 14.34%, with a net profit attributable to shareholders of 2.408 billion yuan, up 21.95% year-on-year [4] - The company is optimizing its business structure and advancing new capacity construction, with significant growth in various business segments, particularly in automotive and server boards, which saw a revenue increase of 91% year-on-year [5] - The company is expected to achieve net profits of 4.19 billion, 4.62 billion, and 5.00 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.81, 1.99, and 2.16 yuan [6] Financial Performance Summary - For Q3 2025, the company achieved a revenue of 10.48 billion yuan, a year-on-year increase of 1.15% and a quarter-on-quarter increase of 26.44% [4] - The revenue breakdown shows that communication boards contributed 62% of total revenue, consumer electronics and computer boards contributed 33%, and automotive/server boards contributed 5% [5] - Capital expenditures reached 4.972 billion yuan in the first three quarters, an increase of nearly 3 billion yuan year-on-year, indicating a peak in capacity expansion [5] Financial Projections - The projected revenues for 2025, 2026, and 2027 are 38.724 billion, 41.761 billion, and 44.746 billion yuan respectively, with year-on-year growth rates of 10.2%, 7.8%, and 7.1% [8] - The projected net profit for 2025, 2026, and 2027 is expected to grow at rates of 15.7%, 10.1%, and 8.4% respectively [8] - The company’s gross margin is projected to improve from 20.8% in 2024 to 22.0% in 2026 and remain stable at 22.0% in 2027 [8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has demonstrated stable performance with a year-on-year revenue growth of 14.34% and a net profit growth of 21.95% in the first three quarters of 2025 [8] - The business structure is continuously optimized, with significant growth in high-value segments such as automotive and server boards, which saw a revenue increase of 91% [8] - The company is actively expanding its production capacity in various locations, including Huai'an, Thailand, and Kaohsiung, Taiwan, with a capital expenditure of 4.972 billion, an increase of nearly 3 billion year-on-year [8] - The acquisition of a 53.68% stake in Huayang Technology for 357 million in cash is expected to enhance the company's capabilities in the automotive electronics market [8] - Revenue projections for 2025-2027 are estimated at 41.365 billion, 47.919 billion, and 56.394 billion respectively, with corresponding net profits of 4.370 billion, 5.642 billion, and 7.208 billion [8] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 26.855 billion and a net profit of 2.408 billion [8] - The revenue breakdown shows that communication boards contributed 16.754 billion (62%), consumer electronics and computer boards contributed 8.483 billion (33%), and automotive/server boards contributed 1.392 billion (5%) [8] - The earnings per share (EPS) for 2025 is projected to be 1.89, with a price-to-earnings (PE) ratio of 27.9 [7][8] - The return on equity (ROE) is expected to increase from 11.1% in 2023 to 18.6% in 2027 [7][9] Market Performance - The company's stock price closed at 52.55 yuan as of October 31, 2025 [2] - The stock has shown a performance increase of 61% compared to the CSI 300 index [4]

Core Viewpoint - The stock of Pengding Holdings (002938) has experienced a significant decline, closing at 52.55 yuan, down 9.61%, with notable trading activity and institutional ratings indicating mixed investor sentiment [1][2]. Trading Information Summary - On October 31, 2025, Pengding Holdings closed at 52.55 yuan, down 9.61%, with a trading volume of 519,328 lots and a turnover of 2.802 billion yuan [1]. - Over the past ten trading days, the main funds have seen a net inflow of 5.3297 million yuan, while the stock price has increased by 11.4% [2]. - The main funds experienced a net outflow of 144 million yuan on the same day, while retail investors saw a net inflow of 114 million yuan [1][2]. Shareholder and Capital Changes - As of September 30, 2025, the number of shareholders reached 75,500, an increase of 14,000 or 22.75% since June 30 [1][2]. - The average number of shares held per shareholder decreased from 37,700 to 30,700, with an average market value of 1.7225 million yuan [1]. Financial Performance Highlights - For the first three quarters of 2025, the company reported a revenue of 26.855 billion yuan, a year-on-year increase of 14.34%, and a net profit attributable to shareholders of 2.408 billion yuan, up 21.95% [1][4]. - The third quarter alone saw a revenue of 10.48 billion yuan, a slight increase of 1.15%, but the net profit decreased by 1.3% year-on-year to 1.175 billion yuan [2][4]. Institutional Research Insights - The company’s PCB business for optical modules has significantly increased revenue, primarily driven by demand for 1.6T optical modules, with expectations for substantial growth in AI glasses-related products over the next two years [2][5]. - The company plans to acquire and increase its stake in Wuxi Huayang Technology, aiming to expand its footprint in the automotive electronics sector [2][11]. Operational and Production Updates - The Thai factory is currently focused on improving its technology and production capabilities, with expectations for production stability in the first half of next year [3]. - The company anticipates that the fourth quarter will be a peak production season, with revenue fluctuations based on market demand [3]. Financial Statement Key Changes - The company reported a net cash flow from operating activities of 4.259 billion yuan for the first three quarters, a year-on-year increase of 45.93% [4][7]. - Total assets reached 47.925 billion yuan, a 7.59% increase from the end of the previous year, while total liabilities stood at 15.060 billion yuan [6][7].

Core Viewpoint - Pengding Holdings has provided updates on its Thailand base progress, short-term performance fluctuations, and future growth drivers, indicating that the first phase of the Thailand base is on track and expected to reach a good production rhythm by mid-next year [1]. Group 1: Thailand Production Base - The Thailand Phase I base has been in production line debugging since May, and the overall progress is in line with expectations [1]. - Products are currently undergoing customer certification, with a good production rhythm anticipated by the first half of next year [1]. - Short-term cost differences are attributed to production efficiency and yield factors of the new production line, which are expected to diminish over time as local industry support improves and employee skills enhance [3]. Group 2: Financial Performance - The company expects revenue to grow in the fourth quarter due to seasonal demand, with operating profit also anticipated to rise [3]. - Profit performance will be impacted by increased depreciation costs and additional expenses during the certification and ramp-up process of the new production line [3]. - In Q3, the gross margin declined by approximately one percentage point year-on-year, primarily due to a quarterly increase in depreciation costs of over 60 million yuan and higher certification costs for the new factory [3]. - Despite the Q3 decline, the overall gross margin for the first three quarters of the year showed a slight year-on-year increase [3]. Group 3: High-Growth Areas - The automotive and server businesses saw a significant revenue increase of 91% year-on-year in the first three quarters, with expectations for these sectors to become important pillars for future growth [3]. - The optical module PCB business also experienced substantial revenue growth compared to the same period last year, aligning with the demand for next-generation 1.6T optical modules [3]. Group 4: AI Smart Hardware - In the AI smart hardware sector, the company is a major supplier for high-end products, with AI glasses requiring higher layers and precision for flexible boards [4]. - The company holds an optimistic outlook for the market next year, anticipating significant growth in demand for AI glasses as more clients enter the field and product functionalities and ecosystems improve [4]. - The company expects AI glasses to contribute incrementally to flexible and high-end rigid boards over the next two years [4]. Group 5: Automation in Production - The automation rate of the new production lines is generally high, but the specific level depends on the product type [4]. - Large-scale production lines can achieve "lights-out factories," while smaller, more diverse production lines do not pursue excessive automation to avoid efficiency loss [4].

Core Viewpoint - The company reported a solid financial performance for the first three quarters of the year, with revenue of 26.86 billion yuan, a year-on-year increase of 14.3%, and a net profit attributable to shareholders of 2.41 billion yuan, up 21.9% year-on-year, indicating strong growth in both revenue and profit [1] Financial Performance Summary - In Q3, the company achieved revenue of 10.48 billion yuan, a year-on-year increase of 1.2% and a quarter-on-quarter increase of 26.4% [1] - The net profit attributable to shareholders in Q3 was 1.17 billion yuan, down 1.3% year-on-year but up 57.7% quarter-on-quarter [1] - The gross margin for Q3 was 23.1%, a decrease of 0.5 percentage points year-on-year but an increase of 2.8 percentage points quarter-on-quarter [1] - The net profit margin for Q3 was 11.1%, down 0.4 percentage points year-on-year but up 2.2 percentage points quarter-on-quarter [1] Acquisition and Strategic Moves - The company announced a cash acquisition and capital increase of 357 million yuan for Wuxi Huayang Technology, which will result in a 53.68% stake in the company [1] - Wuxi Huayang Technology specializes in the production of vehicle-mounted modules and the research and development of sensors, enhancing the company's competitiveness in the automotive electronics sector [2] - The acquisition is expected to strengthen the company's capabilities in advanced processes and system integration in automotive PCB applications [2] Market Outlook - The company anticipates a recovery in profits in Q4, driven by strong sales of major clients and increased orders in the supply chain [2] - The company is also expanding its AI-PCB high-end capacity, with successful certification from key clients, which is expected to contribute to future revenue growth [2] - The period from 2025 to 2027 is projected to be a significant innovation phase for major clients, with new product developments expected to drive demand and technological advancements [3]

Core Insights - Pengding Holdings (002938.SZ) reported its Q3 2025 results, revealing that as of October 30, 2025, 66 institutional investors held a total of 1.866 billion shares, accounting for 80.49% of the company's total equity [1] Institutional Holdings - The top ten institutional investors collectively held 79.26% of the shares, with a slight decrease of 0.65 percentage points compared to the previous quarter [1] - Major institutional investors include Meigang Industrial Co., Ltd., Jihui International Co., Ltd., and the National Social Security Fund [1] Public Fund Activity - Eight public funds increased their holdings, including E Fund New Growth Mixed and Huatai-PB CSI 300 ETF, while nine funds reduced their holdings, such as Huatai-PB CSI 300 ETF and Anxin Shenzhen Technology Index [2] - A total of 38 new public funds disclosed holdings in Pengding Holdings, while 627 funds did not disclose their holdings this quarter [2] Social Security Fund Changes - One social security fund, the National Social Security Fund 103 Portfolio, reduced its holdings by 0.35% [2] - Three new social security funds disclosed holdings in Pengding Holdings, including the National Social Security Fund 416 Portfolio [2] Foreign Investment Trends - One foreign fund, Hong Kong Central Clearing Limited, increased its holdings by 1.49%, while another, Yuefeng Limited, saw a slight decrease in holdings [3]

Group 1 - The PCB market is experiencing significant demand growth driven by the AI development wave, leading to a new round of capacity expansion in the industry [1][3] - Pengding Holdings (002938) reported a revenue of 26.855 billion yuan for the first three quarters of 2025, a year-on-year increase of 14.34%, and a net profit of 2.407 billion yuan, up 21.23% [1] - The company plans to actively promote new capacity construction in Huai'an and Thailand, with capital expenditure reaching 4.972 billion yuan, an increase of nearly 3 billion yuan year-on-year [1] Group 2 - Defu Technology (301511) and Feiliwa (300395) have announced financing and expansion plans, with Defu planning to invest 1 billion yuan in special copper foil production [2] - Shenghong Technology (300476) is expanding its high-end product capacity, including HDI and multilayer boards, to maintain its leading position in the global PCB industry [2] - Dongshan Precision (002384) is enhancing high-end PCB capacity to meet long-term demand in high-speed computing servers and AI applications [2] Group 3 - The PCB industry is seeing a surge in demand for high-layer boards, HDI boards, and IC substrates, with a projected investment of 41.9 billion yuan from leading domestic PCB companies by 2025-2026 [3] - The industry is characterized by a return to an upward cycle, product high-endization, and factory establishment in Southeast Asia, which is expected to drive the demand for PCB equipment upgrades [3] Group 4 - The global PCB market size was 78.34 billion USD in 2023, a decrease of 4.2% year-on-year, but is expected to reach 96.8 billion USD by 2025 [4] - The Chinese PCB market size was 363.257 billion yuan in 2023, down 3.8% from the previous year, but is projected to recover to 433.321 billion yuan by 2025 [4] - Recent quarterly reports from over ten PCB-related listed companies, including Shengyi Electronics and Dazhu CNC, show significant performance increases due to rising market demand [4]