Sou Hu Cai Jing·2025-09-02 13:53Core Viewpoint - Shenghong Technology (300476.SZ) has seen its market capitalization double within 56 trading days, driven by a surge in AI demand, with its stock price increasing over 572% this year, reaching a peak of 293.6 yuan and a market cap of approximately 233.3 billion yuan [2][4]. Group 1: Financial Performance - Shenghong Technology's revenue is expected to exceed 10 billion yuan for the first time in 2024, with a year-on-year increase of 35.3%, and net profit expected to grow by 71.9% [5]. - For the first half of 2025, the company reported revenue of 9.031 billion yuan, a year-on-year increase of 86.0%, and a net profit of 2.143 billion yuan, a staggering increase of 366.89% [5][7]. - The revenue growth is attributed to the large-scale shipment of high-end PCB products related to AI and an optimized product mix, with multi-layer boards (MLPCB) contributing 61.73 billion yuan, accounting for 57.5% of total revenue in 2024 [5][7]. Group 2: IPO and Fundraising - Shenghong Technology has submitted its prospectus to the Hong Kong Stock Exchange for an IPO, aiming to raise approximately 1 billion USD, which would make it one of the largest PCB fundraising efforts in recent years [4]. - The funds raised will primarily be used for capacity expansion and technology research and development, with a total financing target of about 9 billion yuan if both the IPO and a previous private placement are successful [4]. Group 3: Market Position and Client Base - The company has become a key supplier for NVIDIA, with over 70% of its orders linked to NVIDIA-related products, capturing about 50% of the global market for PCB used in NVIDIA's data centers [11][12]. - Shenghong Technology's client base includes major companies such as Foxconn, Gigabyte, Hikvision, and Xiaomi, with a significant portion of its revenue now coming from overseas markets, which accounted for 78.4% of its main revenue in the first quarter of 2025 [12][13]. Group 4: Management and Strategic Development - The company's growth is attributed to its founder, Chen Tao, who has strategically positioned Shenghong Technology in the high-density interconnect (HDI) PCB market, which is crucial for AI applications [10][11]. - The establishment of the HDI division in 2019 has allowed Shenghong Technology to meet the increasing demands of AI hardware, leading to its recognition as a core supplier for NVIDIA [10][11]. Group 5: Industry Outlook - The global PCB market is projected to grow, with an estimated value of approximately 73.57 billion USD in 2024, reflecting a year-on-year increase of 5.8%, and expected to reach 94.66 billion USD by 2029 [16]. - Government initiatives to promote domestic production of high-end PCBs and investments in digital infrastructure are expected to benefit companies like Shenghong Technology [16].