SHENGYI ELECTRONICS CO.(SH:688183) Ping An Securities·2025-12-26 05:06Investment Rating - The report gives a "Buy" rating for Shengyi Electronics (688183.SH) for the first time [6]. Core Viewpoints - Shengyi Electronics, established in 1985 and listed in 2021, has become a leading PCB supplier in China, focusing on high-end applications in communication networks, computers/servers, and automotive electronics [10][13]. - The company is experiencing significant growth in high-value products, with a revenue increase of 114.79% year-on-year in the first three quarters of 2025, driven by the rising demand for AI and high-speed communication PCBs [17][21]. - Shengyi Electronics is actively expanding its production capacity and investing in high-end PCB projects, with a total investment of 4.5 billion yuan planned for new projects [51][52]. Summary by Sections Company Overview - Shengyi Electronics has a total share capital of 832 million shares and a market capitalization of 87.4 billion yuan, with a major shareholder holding 62.93% [6][15]. - The company has been recognized multiple times as an "Excellent Supplier" and "Gold Supplier" by core clients, reflecting its strong customer relationships and product quality [10]. Financial Performance - The projected revenue for 2023 is 3.273 billion yuan, with a forecasted increase to 10.83 billion yuan by 2025, representing a year-on-year growth of 131.1% [5]. - The net profit is expected to rise from a loss of 25 million yuan in 2023 to a profit of 1.676 billion yuan in 2025, indicating a significant turnaround [5]. Market Trends - The global PCB market is projected to grow, with an expected value of 69.517 billion USD in 2024, increasing to 79.128 billion USD in 2025, driven by the demand for AI infrastructure [25][28]. - Shengyi Electronics is positioned to benefit from the increasing demand for high-end PCBs, particularly in AI servers and high-speed communication equipment, as the industry continues to evolve [30][32]. Strategic Initiatives - The company is focusing on high-end product lines and has successfully transitioned to AI computing infrastructure, achieving large-scale production of AI server motherboards and accelerator cards [48]. - Shengyi Electronics plans to enhance its production capacity through a public offering, aiming to invest 2.6 billion yuan in high-end PCB production facilities [51][52].