Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 2.14 billion yuan for the first half of 2025, representing a year-on-year growth of 35.60% [2][5] - The net profit attributable to shareholders reached 173 million yuan, with a year-on-year increase of 15.29% [2][5] - The gross margin and net margin were 22.28% and 8.06%, showing a year-on-year change of +1.44 percentage points and -1.42 percentage points respectively [2][5] - In Q2 2025, the company achieved a revenue of 1.188 billion yuan, a year-on-year growth of 46.95% and a quarter-on-quarter growth of 24.87% [2][5] - The net profit for Q2 was 94 million yuan, reflecting a year-on-year increase of 29.30% and a quarter-on-quarter increase of 19.89% [2][5] - The company has advanced R&D and manufacturing capabilities, particularly in HDI products, and is positioned among the top in the domestic market [12] - The company is enhancing its production capacity and optimizing its product structure, with a focus on high-end products [12] - The company is well-prepared for future technology directions and product requirements in high-growth sectors such as AI servers and GPU acceleration cards [12] Financial Summary - The company expects to achieve net profits of 346 million yuan, 434 million yuan, and 541 million yuan for the years 2025, 2026, and 2027 respectively [12] - The corresponding price-to-earnings ratios for these years are projected to be 107.13 times, 85.49 times, and 68.55 times [12] - The company has established production bases in Zhuhai and Chongqing, and is also developing a manufacturing base in Thailand to enhance global delivery capabilities [12]

Investment Rating - The report maintains an "Accumulate" rating for Dongwei Technology (688700) [1] Core Views - The demand for high-end electroplating equipment is expected to increase due to the CoWoP technology combined with HDI, positioning the company to benefit significantly [7] - The company is well-positioned to capitalize on the growth in HDI electroplating equipment demand, supported by its advanced technology and product offerings [7] Financial Forecasts - Projected total revenue (in million RMB) for 2023A is 909.23, with a decline of 10.13% year-on-year, and is expected to rise to 1,266.38 by 2027E, reflecting a growth of 11.45% [1] - The forecasted net profit attributable to the parent company (in million RMB) is 151.43 for 2023A, with a significant drop of 29.01% year-on-year, expected to recover to 224.36 by 2027E, showing a growth of 21.48% [1] - The latest diluted EPS is projected to be 0.51 for 2023A, increasing to 0.75 by 2027E [1] - The current price-to-earnings ratio (P/E) is 94.25, with future projections of 206.03 for 2024A, decreasing to 63.61 by 2027E [1] Market Data - The closing price of the stock is 47.83 RMB, with a market capitalization of 14,272.54 million RMB [5] - The stock has a price-to-book ratio of 8.15 and a one-year price range of 16.95 to 51.00 RMB [5] Key Technologies and Market Trends - The CoWoP process is emerging as a mainstream packaging technology, simplifying processes and reducing transmission losses, which is crucial for the PCB industry [7] - The MSAP and SAP processes are identified as key technologies for achieving HDI, driving the demand for high-value electroplating equipment [7] - The company’s horizontal electroplating equipment is validated by leading customers, indicating a promising domestic replacement trend [7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The demand for laser micro-hole equipment is expected to increase due to the adoption of CoWoP technology combined with HDI, positioning the company to benefit significantly [7] - The company's TGV laser micro-hole equipment is technologically advanced, meeting the stringent quality requirements of high-end HDI PCBs, and is already being utilized in semiconductor and display chip packaging [7] - The financial forecasts indicate a steady growth in revenue and net profit, with projected net profits of 6.4 billion, 7.2 billion, and 7.6 billion RMB for 2025, 2026, and 2027 respectively, corresponding to dynamic P/E ratios of 31, 28, and 26 times [7][8] Financial Projections - Total revenue is projected to grow from 2,014 million RMB in 2024 to 3,177 million RMB in 2027, with a compound annual growth rate (CAGR) of approximately 9.96% [1][8] - The net profit attributable to the parent company is expected to increase from 643 million RMB in 2025 to 760 million RMB in 2027, reflecting a growth rate of 5.57% in the final year [1][8] - The earnings per share (EPS) is forecasted to rise from 1.93 RMB in 2024 to 2.78 RMB in 2027 [1][8]

Group 1 - The company, Electric Connection Technology, confirmed on August 15 that its product capabilities for multi-layer flexible boards and rigid-flex boards include HDI technology [2] - The company stated that there is currently no undisclosed information that should be disclosed [2]

Core Viewpoint - The company, Dianzhi Technology (300679.SZ), confirmed its product capabilities in multilayer flexible boards and rigid-flex boards, which include HDI technology, and stated that there is no undisclosed information that should be disclosed [1] Group 1 - The company’s product capabilities encompass HDI technology [1] - There is currently no undisclosed information that the company is required to disclose [1]

Summary of Key Points from Conference Call Industry Overview - The global PCB market is expected to grow significantly, from $73.565 billion in 2024 to $100 billion by 2026, driven primarily by the AI server market, which is growing faster than the overall AI server growth rate [1][2][4]. Core Insights and Arguments - AI computing demand is driving the PCB industry through increased shipments of GPUs and ASICs, with ASICs requiring higher performance and power efficiency, leading to greater demand for high-end PCB products [1][5]. - GPU shipments are projected to reach 6.76 million units in 2026, a growth of approximately 20% to 30% compared to 5.76 million units in 2025 [1][9]. - Major cloud computing companies are optimistic about the acceleration of AI commercialization, increasing their capital expenditures (CAPEX). For instance, the total CAPEX of the four major North American cloud computing firms is expected to reach $366.1 billion in 2025, a nearly 50% year-over-year increase, and further increase to $426.2 billion in 2026 [1][18]. Specific Company Insights - NVIDIA's demand for PCBs is expected to grow rapidly from $850 million in 2024 to $1.53 billion in 2025, and then to $2.64 billion in 2026, reflecting the increasing demand for high-performance computing devices [3][16]. - Google and Amazon are rapidly advancing in ASIC chip development, with Google expected to ship 2 million ASIC chips in 2025 and 3.3 million in 2026, significantly increasing PCB usage from $1 billion to $2 billion [19]. - Meta is projected to increase its PCB procurement from $1.1 billion in 2025 to $2 billion in 2026, while Microsoft is also ramping up its investments in computing infrastructure [20]. Emerging Technologies and Trends - New technologies such as COWOP (Chip-on-Wafer-on-Substrate) are being adopted, with a shift towards modular designs that enhance performance and cost-effectiveness [6][14]. - The introduction of high-frequency and high-speed materials, such as Ma9 and PTFE, is expected to significantly increase the value of PCBs and CCLs (Copper Clad Laminates) [7][33]. - The market for orthogonal backplanes is projected to reach $2 billion, driven by NVIDIA's new Rubin Ultra solution, which emphasizes the importance of PCB connections over traditional copper connections [30]. Supply Chain and Capacity Issues - Domestic PCB companies in China are experiencing a growth trend in CAPEX, with expectations of reaching 25 to 30 billion RMB in 2025, but face challenges such as long ramp-up cycles for high-end products and immature supply chains in Southeast Asia [27]. - Upstream CCL companies are also expanding capacity, but high-end materials remain in short supply, which could become a bottleneck for PCB manufacturers [28]. Market Demand and Economic Impact - The demand for AI-related PCBs is projected to grow from $5.6 billion in 2025 to $10 billion in 2026, significantly contributing to GDP growth [25]. - The optical module market is also expected to see substantial growth, with PCB demand rising from $1.6 billion in 2025 to nearly $3 billion in 2026 [26]. Conclusion - The PCB industry is poised for significant growth driven by advancements in AI computing, increased demand for high-performance computing devices, and the adoption of new technologies. However, supply chain challenges and capacity constraints may impact the pace of this growth.

Summary of Conference Call Records Industry Overview - The records focus on the **PCB (Printed Circuit Board)** manufacturing industry, particularly high-layer and HDI (High-Density Interconnect) boards, and the associated equipment demands. Key Points and Arguments Equipment Demand and Market Dynamics - There is a strong demand for equipment in the production of high-layer and HDI boards, particularly for **LDI (Laser Direct Imaging) exposure machines**, **vacuum two-fluid etching lines**, **PN type presses**, **direct drilling**, and **vertical plating lines** [1][2][3] - The production of a 22-layer 5-stage HDI board requires multiple processes including laser processing, pressing, mechanical drilling, and plating, leading to a significantly higher equipment capacity requirement compared to traditional PCBs [1][5] - The high-end press market is dominated by foreign brands such as **Burkle** and **Lasa**, which have long lead times, prompting some companies to assemble domestically to reduce delivery times [1][10][11] - The laser drilling machine market is primarily led by **Mitsubishi**, known for high capacity and efficiency, making it essential in modern electronic manufacturing [1][13] Technological Trends - The vertical continuous plating line is favored for its automation and environmental benefits, utilizing pulse current to enhance impedance ratios [1][16] - The LDI technology is rapidly developing in China, with companies like **New Flag Technology** showing strong competitiveness in fine line applications [1][17] - The mechanical drilling and forming machine market is mature, with domestic manufacturers like **Dazhu Laser** and **Weijia** gaining significant market share [1][18][19] Investment Value - The investment value in the electroplating segment of PCB manufacturing is substantial, with high-end VCP systems costing significantly more than exposure machines, leading to total investments in modern factories reaching billions [2][30][31] - The complexity of ASIC product designs, such as those from **Google** and **Microsoft**, necessitates multiple drilling, plating, and pressing operations, which increases the demand for advanced equipment [2][29][33] Market Challenges and Opportunities - Domestic manufacturers are gradually entering the press market, but top-tier clients still prefer established foreign brands due to reliability concerns [1][12] - The market for laser equipment is competitive, with key players including **Dazhu Laser** and **ESI**, but challenges remain due to tariff impacts and the need for technological advancements [1][14][15] - The PCB equipment market is characterized by a high degree of customization, leading to significant price variations based on specifications and requirements [1][36] Key Equipment and Processes - The manufacturing process for high-layer boards involves multiple critical steps, including pressing, drilling, electroplating, and testing, each requiring specialized equipment [1][9][29] - The use of Q fabric in drilling applications presents challenges due to its hardness, leading to increased wear on drilling tools [1][25][26] Additional Important Content - The records highlight the importance of automated visual inspection (AVI) and final quality control (FQC) in ensuring product quality throughout the manufacturing process [1][3] - The domestic PCB equipment market shows varying levels of localization, with certain areas like drilling machines achieving high localization rates, while others, such as high-end electroplating lines, still rely heavily on foreign technology [1][21][23] This summary encapsulates the critical insights from the conference call records, providing a comprehensive overview of the current state and dynamics of the PCB manufacturing industry.

Group 1: Company Operations and Capacity Utilization - The company's overall business operations are normal, with a comprehensive capacity utilization rate remaining relatively high. The PCB business benefits from sustained demand in computing power and automotive electronics, maintaining high capacity utilization [1] - The packaging substrate business has seen improved demand in the storage sector, with capacity utilization increasing compared to Q4 2024 and Q1 2025 [1] Group 2: Product Development and Project Progress - The company has achieved mass production capability for packaging substrates with up to 20 layers, and the technical development for products with over 20 layers is progressing as scheduled [1] - The Guangzhou packaging substrate project has entered its first phase, with production capacity steadily increasing and batch orders for BT and some FC-BGA products being accepted, although it is still in the early stages of capacity ramp-up [1][2] Group 3: Client Base and Market Position - The packaging substrate business serves a diverse client base, including IDM (Integrated Device Manufacturers), Fabless (semiconductor design companies), and OSAT (Outsourced Semiconductor Assembly and Test) manufacturers [3] Group 4: Expansion Plans and Technological Capabilities - The PCB business is expanding with factories located in Shenzhen, Wuxi, Nantong, and a new facility under construction in Thailand. The company is upgrading existing PCB factories to enhance capacity and is progressing with the Nantong Phase IV project to establish an HDI technology platform [4] - The company’s PCB business utilizes HDI technology, which allows for high-density wiring, primarily applied in communication, data centers, industrial control medical, and automotive electronics sectors [5] Group 5: Investment and Market Strategy - The total investment for the Thailand factory is 1.274 billion RMB, with construction progressing on schedule. The factory will have capabilities in high-layer and HDI PCB technologies, aiding in expanding overseas market reach [6] Group 6: Raw Material Price Trends - Key raw materials include copper-clad laminates, prepregs, copper foil, gold salts, and inks. In Q1 2025, prices for some raw materials, such as gold salts, increased year-on-year and compared to Q4 2024 due to commodity price fluctuations [7] Group 7: Compliance and Disclosure - The company adhered to the "Information Disclosure Management System" during the research process, ensuring no significant undisclosed information leaks occurred [8]