Core Viewpoint - The report from China Merchants Securities suggests that the PCB industry in 2026 will continue to present long-term investment opportunities in sectors such as computing power boards, CCL, upstream raw materials, equipment, AI edge applications, and domestic substitution. The current AI-driven technological innovation cycle is expected to last longer and generate broader market demand, with optimism from overseas CSP manufacturers regarding AI capital expenditure for 2026 [1] Group 1: Market Overview - The PCB sector experienced a steady upward trend driven by AI computing demand in early 2025, followed by fluctuations due to uncertainties in training-side computing power demand and geopolitical factors. The overall performance of the PCB sector showed significant growth, with a 149.9% increase year-to-date, outperforming the SW electronics sector by 101.2 percentage points and the CSI 300 index by 132.2 percentage points [1] - The PCB industry is currently in an expansion phase, with strong downstream AI computing demand. Despite expected weaknesses in mobile and automotive sectors in 2026, the demand for servers and switches remains robust due to AI infrastructure upgrades [2] Group 2: Supply and Demand Dynamics - The overall utilization rate of PCB manufacturers in the second half of 2025 was between 93-97%, with leading manufacturers maintaining optimistic order visibility for over three months. The industry is entering a new capacity expansion phase, focusing on high-end HDI, high multi-layer boards, and high-end substrates [2] - The demand for high-end HDI and high multi-layer boards is rapidly increasing, with a projected 25% year-on-year growth in AI capital expenditure, amounting to approximately $550 billion in 2026. The server PCB market is expected to grow at a CAGR of 18.7% from 2024 to 2029, reaching $25.7 billion [3] Group 3: Product and Price Trends - The prices of copper and gold are expected to remain high, with upward trends in copper foil processing fees and fiberglass cloth. The overall price outlook for the PCB/CCL industry remains bullish for 2026 [2] - The AI-driven demand for CCL is leading to significant upgrades in specifications, with the high-speed CCL market projected to reach approximately $8 billion in 2026, driven by a CAGR of 40% from 2024 to 2027 [6] Group 4: Upstream Materials and Equipment - The demand for high-end products in upstream materials is accelerating, with significant upgrades in electronic copper foil, resin, and fiberglass cloth. The supply of high-end materials is becoming increasingly tight [7] - Domestic equipment manufacturers are expected to benefit from the PCB expansion cycle and the accelerated domestic substitution of high-end equipment, particularly in drilling and laser drilling sectors [8]

首创证券研报指出，胜宏科技深耕PCB行业20多年，根据Prismark数据，公司在全球PCB厂商中排名第 六，在中国大陆内资PCB厂商中排名第三。公司在高多层及HDI领域积累深厚，已打入全球头部客户供 应链。根据Prismark预测，PCB市场规模将从2024年的735.65亿美元增长至2029年的946.61亿美元，五年 复合增长率为5.2%。公司积极扩产，把握AI带来的高端PCB需求。为巩固公司在全球PCB行业的地位， 强化在AI算力、AI服务器等领域的优势。公司凭借在高多层和HDI领域的提前布局，有望把握AI带来的 成长机会。首次覆盖，给予"买入"评级。 ...

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company specializes in high-end PCB manufacturing and is positioned in the core AI computing sector [2] - The company has a strong market presence, ranking sixth globally and third among domestic PCB manufacturers in China [5] - The company has achieved significant revenue growth driven by AI demand, with a projected revenue of 198.79 billion yuan in 2025, representing an 85.24% increase from the previous year [3][5] - The company is expanding its production capacity to meet the growing demand for high-end PCBs, particularly in AI applications [5] Financial Performance - The company reported a revenue of 141.17 billion yuan for the first three quarters of 2025, a year-on-year increase of 83.40% [5] - The net profit for the same period was 32.45 billion yuan, reflecting a year-on-year growth of 324.38% [5] - The gross margin for the first three quarters of 2025 was 35.85%, and the net margin was 22.98% [5] Revenue Forecast - Revenue projections for the company are as follows: - 2024: 107.31 billion yuan - 2025: 198.79 billion yuan - 2026: 333.64 billion yuan - 2027: 497.31 billion yuan [3] - The corresponding net profit forecasts are: - 2024: 11.54 billion yuan - 2025: 49.47 billion yuan - 2026: 91.58 billion yuan - 2027: 137.48 billion yuan [3] Market Outlook - The PCB market in China is expected to grow significantly, with an estimated increase of 8.5% in 2025 [5] - High-layer PCBs are projected to grow by 69.4%, while HDI boards are expected to increase by 14.2% [5] - The overall PCB market size is forecasted to grow from 73.565 billion USD in 2024 to 94.661 billion USD by 2029, with a compound annual growth rate of 5.2% [5]

Market Overview - The Shanghai Composite Index closed at 3940.95 points, with an increase of 0.53% and a trading volume of 773.93 billion [1] - The Shenzhen Component Index closed at 13486.42 points, rising by 0.88% with a trading volume of 1106.34 billion [1] - The ChiNext Index closed at 3229.58 points, up by 0.77% and a trading volume of 502.57 billion [1] Sector Performance - The commercial aerospace sector experienced a significant surge, with nearly 30 stocks, including New Jingang, Chaojie Co., and China Satellite, hitting the daily limit [1] - The storage chip sector remained active, highlighted by Yintang Zhikong reaching the daily limit [1] - The PCB (Printed Circuit Board) sector strengthened, with Shengyi Technology also hitting the daily limit [1] - The photovoltaic sector showed strength, with Junda Co. reaching the daily limit [1] - The dairy sector weakened, with Zhuangyuan Pasture falling nearly 8% [1] - Other sectors such as paper, CPO (Consumer Packaged Goods), and consumer electronics saw notable gains, while coal, agriculture, forestry, animal husbandry, and liquor sectors experienced declines [1]

Summary of Conference Call Records Industry Overview: PCB Industry Key Trends and Developments - The PCB industry is experiencing a clear trend of upgrading solutions, particularly in backplane technology, with significant developments expected by 2025 and 2026 [1][2] - The AI server backplane solution is anticipated to be finalized by February 2025, with small batch shipments starting in the second half of 2026 and large-scale shipments in 2027 [1][5] - The demand for HVLP copper foil is increasing, with domestic manufacturers like Defu Technology and Tongguan actively promoting domestic alternatives [1][10] Core Companies and Their Performance - **Philihua Quartz Electronic Fabric**: Transitioned from testing to small batch production, with prices rising to 250-280 RMB/meter. Expected to ship 10 million meters in 2026, contributing approximately 1 billion RMB to revenue [1][6][7] - **Feilohua**: Projected main business profit of 4.5-5 billion RMB in 2025, with total profit in 2026 expected to reach 15 billion RMB, driven by the experimental electronics division [1][8][9] - **Defu Technology**: Acquired high-end IT copper foil from Luxembourg, with production capacity expected to increase significantly [1][11] - **Tongguan**: Transitioning some lithium battery copper foil production to PCB foil, with a stable supply to major clients [1][11] Technical Challenges and Controversies - The technical challenges for the right-angle backplane include high layer counts, alignment and drilling difficulties, and the need for high-temperature copper paste sintering technology [3][4] - Current controversies focus on the electrical signal transmission efficiency, which is deemed satisfactory but not ideal [4] Market Dynamics and Future Outlook - The PCB industry is expected to maintain high prices and profit margins until 2027 due to a tight supply-demand balance and extended lead times for high-end laser drilling equipment [5] - The resin market is benefiting from server upgrades, with high-end resin formulations leading to simultaneous increases in volume and price [1][15] - The AI electronic fabric market is projected to see significant growth, with demand expected to rise from 1 billion meters in 2025 to over 3 billion meters in subsequent years [1][19][20] Competitive Landscape - The resin supply market is currently dominated by international players, but domestic companies like Taiguang are gaining significant market share [1][16][17] - The PCB drill bit market is led by companies such as Dingtai and Zhongtung, with expectations of increased demand due to material upgrades and structural changes in PCB boards [1][22][24] Conclusion - The PCB industry is poised for substantial growth driven by technological advancements and increasing demand for high-performance materials. Key players are strategically positioned to capitalize on these trends, with significant profit potential anticipated in the coming years [1][9][10]

Core Viewpoint - The A-share market is experiencing a trend of moderate upward movement, supported by stable large-cap stocks and active small-cap growth stocks, indicating a shift from localized recovery to broader market improvement driven by policy, economic conditions, and capital flow [4][5]. Market Performance - The Shanghai Composite Index is primarily supported by stable large-cap stocks and the rotation of thematic stocks, while the Shenzhen Component Index shows the largest increase driven by active thematic stocks and the rise of small-cap growth stocks [4]. - The ChiNext Index has achieved a mild increase propelled by the growth of technology and computing-related stocks [4]. Market Sentiment - A total of 4,125 stocks have risen, indicating a strong overall market rally and improved investor sentiment, transitioning from "localized recovery" to "broad expansion" [5]. - The market is characterized by a strong upward trend, with a notable shift in focus towards high-growth sectors such as commercial aerospace, computing hardware, and PCB [5]. Capital Flow - The total trading volume in both markets has slightly decreased by 1.03%, reflecting a shift in capital from high-priced thematic stocks (like new energy and consumer electronics) to undervalued blue-chip stocks (such as banks and public utilities) and technology leaders (like AI computing and semiconductors) [6]. - There is a significant structural differentiation in capital flow, with retail investors actively pursuing small-cap stocks while institutional investors focus on high-growth sectors [7]. Investor Behavior - Retail investors are engaging in short-term speculation and chasing hot stocks, particularly increasing their positions in commercial aerospace, semiconductors, and computing hardware, complementing the strategies of institutional investors [7]. - The current average position of investors is reported at 68.27%, with 31.57% increasing their positions, 17.00% reducing their positions, and 51.43% remaining unchanged [13].

Market Overview - A-shares experienced a rise with the Shanghai Composite Index achieving six consecutive gains, closing up 0.53% at 3940.95 points, while the Shenzhen Component Index rose 0.88% and the ChiNext Index increased by 0.77% [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.8973 trillion yuan, a decrease of approximately 24 billion yuan from the previous day [1] Commercial Aerospace Sector - The commercial aerospace concept saw a significant surge, with stocks like New Jingang, New Ray Energy, and Superjet Co. all hitting the 20% limit up, while other companies like XW Communication and Chuangyuan Technology also performed strongly [2][4] - The sector is being driven by supportive policies and technological advancements, with the National Space Administration's action plan for commercial aerospace development and successful tests of reusable rockets [4] PCB Sector - The PCB sector experienced strong gains, with companies such as Youyan Powder Materials and Ruihua Tai reaching the 20% limit up, and Shengyi Technology hitting a historical high with a market value of 176.4 billion yuan [5][7] - The market for PCBs is expected to grow significantly, driven by the demand from AI servers and electric vehicles, with a projected compound annual growth rate of 32.5% in the AI/HPC server PCB sector from 2023 to 2028 [7] Victory Energy - Victory Energy's stock hit a new high, closing at 34.79 yuan per share, marking its ninth consecutive trading day of limit up [8] - The company has warned investors about the significant deviation of its stock price from market trends and its fundamentals, indicating potential risks of rapid price declines [9][10]

Market Overview - A-shares experienced a rise with the Shanghai Composite Index gaining 0.53% to close at 3940.95 points, marking a six-day winning streak [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.8973 trillion yuan, a decrease of approximately 24 billion yuan from the previous day [1] Commercial Aerospace Sector - The commercial aerospace concept saw a significant surge, with stocks like Chaojie Co., Xin Jingang, and Xin Le Energy hitting the 20% limit up [3][4] - The sector is driven by supportive policies and technological advancements, including the successful vertical recovery test of the Zhuque-3 rocket and plans for IPOs by leading companies like SpaceX and Blue Arrow Aerospace [5] PCB Sector - The PCB sector also showed strong performance, with stocks such as Youyan Powder Materials and Ruihua Tai reaching the 20% limit up, and Jiayuan Technology rising over 10% [7][8] - The market for PCBs is expected to grow significantly, driven by the AI computing revolution, with a projected compound annual growth rate of 32.5% in the AI/HPC server PCB segment from 2023 to 2028 [9][10] Specific Stock Performances - Victory Energy (001331) achieved a nine-day consecutive limit up, closing at 34.79 yuan per share, with a trading volume of nearly 130,000 hands on the limit up board [12] - The company has warned investors about the significant deviation of its stock price from market fundamentals, indicating potential risks [14]

Market Overview - A-shares experienced a rise with the Shanghai Composite Index achieving six consecutive days of gains, closing up 0.53% at 3940.95 points, while the Shenzhen Component Index rose 0.88% and the ChiNext Index increased by 0.77% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 1.8973 trillion yuan, a decrease of approximately 24 billion yuan compared to the previous day [1] Commercial Aerospace Sector - The commercial aerospace concept saw a significant surge, with stocks like Chaojie Co. (301005) hitting the daily limit and achieving new highs, while Shenjian Co. (002361) recorded five consecutive limit-ups [2][4] - Institutions noted that policies and industry collaboration are propelling China's commercial aerospace into a new development phase, with the National Space Administration's action plan for high-quality development set for 2025-2027 [4] - The market is expected to see a massive growth opportunity, with a focus on space computing power and reusable rockets, as well as low-orbit communication satellite chains supported by fundamental logic and orders [4] PCB Sector - The PCB sector experienced strong gains, with companies like Youyan Powder Materials and Ruihua Tai both hitting the daily limit of 20%, and Jiayuan Technology rising over 10% [6] - The global PCB market is projected to grow, with a compound annual growth rate of 32.5% in the AI/HPC server PCB segment from 2023 to 2028, driven by demand from new energy vehicles and AI servers [9] Victory Energy - Victory Energy achieved a nine-day consecutive limit-up, closing at 34.79 yuan per share, with nearly 130,000 hands of buy orders at the limit [10] - The company issued a warning regarding significant deviations in stock price from market indices, indicating potential risks of rapid declines and advising investors to make rational decisions [12]

Market Overview - The market experienced a rebound with the Shanghai Composite Index achieving six consecutive gains, closing up 0.53%, while the Shenzhen Component rose by 0.88% and the ChiNext Index increased by 0.77% [1][8] - The total trading volume in the Shanghai and Shenzhen markets was 1.88 trillion yuan, a decrease of 19.6 billion yuan compared to the previous trading day [1] Sector Performance - The commercial aerospace sector saw significant gains, with over 20 stocks hitting the daily limit, including Shenjian Co. with five consecutive gains and Guoji Precision Engineering with three gains in four days [2][6] - The computing hardware sector also showed strength, with stocks like Huanxu Electronics achieving three gains in six days and Yintang Intelligent Control hitting the daily limit [2][6] - The PCB sector experienced a surge, with Shengyi Technology hitting the daily limit and reaching a historical high [4][6] Key Events and Reports - The China Commercial Aerospace Development Conference was held, where a report indicated that China completed 87 space launches this year, with 23 by private commercial rocket companies [2] - Nvidia's GB300 series servers began small-scale shipments this year, with expectations for large-scale production in the first half of next year, potentially reaching 55,000 units, a 129% year-on-year increase [4][7] Individual Stock Highlights - In the commercial aerospace sector, stocks like Shenjian Co. and Guoji Precision Engineering showed strong performance, with Shenjian Co. achieving five consecutive gains [2][6] - The Fujian sector also performed well, with stocks like Anji Food and Hexing Packaging showing multiple consecutive gains [6] - The computing hardware sector saw stocks like Huanxu Electronics and Jintai Technology actively trading, indicating a positive trend [6] Future Market Outlook - The market is expected to continue its upward trend, with the Shanghai Composite Index breaking above the December 8 high of 3936, indicating a potential for further gains [8] - However, the overall trading volume has not significantly increased, suggesting that maintaining a continuous rally may be challenging without additional capital inflow [8]