SHENGYI ELECTRONICS CO.(SH:688183) SINOLINK SECURITIES·2025-10-26 09:48Investment Rating - The report maintains a positive outlook on the AI-PCB and core computing hardware sectors, as well as the Apple supply chain and self-sufficient industries [4][29]. Core Insights - Strong demand for AI continues to drive significant growth in the industry, with many companies expected to exceed Q3 earnings forecasts due to robust orders from major AI clients [1][4]. - The AI server and related hardware markets are anticipated to see accelerated growth, with Nvidia's AI server shipments expected to increase in Q4 [1][4]. - The report highlights the ongoing price increases in storage chips and the strong demand for AI-related products, indicating a favorable market environment for companies involved in these sectors [1][4][25]. Summary by Sections 1. Industry Overview - AI demand remains robust, with companies like Shengyi Technology reporting Q3 revenues of 2.84-3.26 billion yuan, a year-on-year increase of 135-170% [1]. - TSMC is optimistic about AI demand, projecting a compound annual growth rate (CAGR) of around 45% for AI revenue from 2024 to 2029 [1]. 2. Subsector Insights 2.1 Consumer Electronics - Apple has launched new products, including the iPhone 17 series and AI-related devices, which are expected to drive demand in the consumer electronics sector [5][6]. - The report anticipates a surge in end-side AI applications, particularly in smart devices and home automation [5]. 2.2 PCB - The PCB industry is experiencing high demand, particularly driven by automotive and industrial applications, with price increases noted for raw materials [7][29]. - The overall PCB market is expected to maintain a high level of activity, supported by AI growth and policy incentives [7]. 2.3 Components - The report notes that AI applications are increasing the demand for passive components, particularly in mobile devices [22]. - The LCD panel market is stabilizing, with effective production control measures in place [23]. 2.4 IC Design - The storage sector is projected to see price increases due to supply constraints and rising demand from cloud computing and consumer electronics [24][25]. 2.5 Semiconductor Equipment - The report emphasizes the trend of domestic semiconductor equipment manufacturers benefiting from the push for self-sufficiency amid geopolitical tensions [26][31]. - Companies like North Huachuang are expected to gain market share as domestic production ramps up [31]. 3. Key Companies - Companies such as Shengyi Technology, North Huachuang, and Jiangfeng Electronics are highlighted as key players benefiting from the AI and semiconductor trends [29][31][33]. - The report suggests that these companies are well-positioned to capitalize on the growing demand for AI-related products and services [30][31].