GDM(SZ:002636) Xin Hua Cai Jing·2025-07-10 10:58Group 1: Market Performance - The A-share PCB industry has seen significant stock price increases in July, with top performers including Jin'an Guoji (up 59.81%), Tongguan Copper Foil, and International Composite Materials, all exceeding 50% growth [1] - Shenghong Technology, the only PCB company with a market cap over 100 billion yuan, has risen nearly 8% in July, with a year-to-date increase of over 246% [1] - Other large-cap companies like Pengding Holdings and Hudian Co. have also shown strong performance, with increases of 23.88% and 10.97% respectively in July [1] Group 2: Company Insights - Jin'an Guoji, a leading company in the copper-clad laminate sector, has maintained stable revenue over the past five years but has struggled with net profit, hovering near breakeven from 2022 to 2024 [4][6] - The company expects a significant increase in non-GAAP net profit, projecting a growth of 47-63 times year-on-year for the first half of 2025, driven by increased sales volume and slight price recovery [6] - Jin'an Guoji's latest quarterly report indicated a 215.34% increase in non-GAAP net profit for Q1 2025, with a recovery in gross margin to 10.77% [6] Group 3: Industry Trends - The PCB industry in China is experiencing steady growth, with a projected market size of approximately 346.9 billion yuan in 2024, driven by the rapid development of the electronic information industry and emerging technologies [8] - The demand for high-performance PCBs is expected to surge due to the growth of AI computing power, particularly in AI server markets, which require more PCB layers and optimized materials [8][9] - Analysts predict that the global PCB market could reach a value of 94.66 billion USD by 2029, with AI servers and high-performance computing systems driving demand for low-loss, multi-layer boards [9] Group 4: Valuation Metrics - Jin'an Guoji currently has a high dynamic PE ratio of 118, significantly above its competitor Shengyi Technology, which stands at 36 [7] - The return on equity (ROE) for Jin'an Guoji is only 0.69%, compared to 3.7% for Shengyi Technology, indicating a disparity in financial performance [7] - The stock price surge for Jin'an Guoji may be attributed to its smaller float compared to larger competitors, with its market cap being only one-eighth of Shengyi Technology's [7]