Aohong Electronics(SH:605058) Zheng Quan Zhi Xing·2025-08-31 10:20Core Viewpoint - Changzhou Aohong Electronics Co., Ltd. plans to raise up to RMB 580 million through the issuance of convertible bonds, with the funds primarily allocated for the construction of a production base in Thailand, aimed at increasing annual production capacity by 1.2 million square meters for single-sided, double-sided, and multi-layer boards [3][18]. Group 1: Investment Project Necessity - The PCB industry is expected to experience moderate recovery and steady growth, with a projected compound annual growth rate (CAGR) of 5.40% from 2023 to 2028, and the global PCB market is anticipated to reach USD 73 billion in 2024, reflecting a year-on-year growth of approximately 5% [5][6]. - The Southeast Asian PCB market is projected to grow significantly, with an expected CAGR of 12.7% from 2023 to 2028, driven by local policies and international industry transfers [5][6]. - The establishment of the Thailand production base is essential for optimizing the company's PCB capacity layout to meet the increasing procurement demands of overseas customers [18][21]. Group 2: Market Demand and Client Base - The demand for PCB products is recovering, particularly in sectors such as AI, automotive electronics, and industrial control, which are driving overall PCB demand growth [6][8]. - Major clients of the company include well-known enterprises such as LG, Hisense, and Haier, which have high standards for product quality and stability in supply chains [12][21]. - The company aims to enhance its overseas supply capabilities and service quality to improve customer loyalty, as local production can meet the increasing demands for flexible delivery and high-quality standards [20][21]. Group 3: Competitive Landscape - The global PCB industry is characterized by a competitive landscape with a concentration ratio (CR5) of approximately 30%, indicating a well-distributed market among leading manufacturers [6]. - The company has over 20 years of experience in manufacturing single-sided and multi-layer boards, establishing a strong brand image and market recognition [18][22]. - The PCB industry is witnessing a trend of domestic manufacturers expanding their production bases to Southeast Asia, with many companies planning significant investments in Thailand [11][18].