Core Viewpoint - Shenghong Technology's board has approved the issuance of H shares and the application for listing on the Hong Kong Stock Exchange to enhance its global strategy and brand recognition [2][3]. Group 1: H Share Issuance and Listing - The company plans to issue H shares not exceeding 10% of the total share capital post-issuance, with an option for underwriters to exercise over-allotment rights [3]. - The raised funds will be allocated for domestic and international capacity expansion, research and development, and to supplement working capital [3]. Group 2: Financial Performance - In 2024, Shenghong Technology achieved a revenue of 10.731 billion yuan, a year-on-year increase of 35.31%, and a net profit of 1.154 billion yuan, up 71.96% [5]. - In Q1 2025, the company reported a revenue of 4.312 billion yuan, a year-on-year growth of 80.31%, and a net profit of 921 million yuan, reflecting a staggering increase of 339.22% [5]. - The company's AI computing and data center-related products accounted for over 40% of its revenue in Q1 2025, with a leading global market share in AI computing cards [5]. Group 3: Competitive Landscape - The domestic PCB industry in the AI server sector shows a stable competitive landscape with varying stages of production among companies, while Shenghong Technology has achieved large-scale production of AI server-related PCB products and has entered the supply chain of top global server clients [6]. Group 4: Stock Performance - Since January 2024, Shenghong Technology's stock price has increased by over 10 times [7]. - As of July 29, the stock closed at 189.25 yuan per share, with a market capitalization of 163.3 billion yuan [8].

Core Viewpoint - Shenghong Technology's board has approved the issuance of H-shares and application for listing on the Hong Kong Stock Exchange to enhance global brand recognition and competitiveness, with a proposed issuance of H-shares not exceeding 10% of the total share capital post-issuance [1] Group 1: Financial Performance - In 2024, Shenghong Technology achieved revenue of 10.731 billion yuan, a year-on-year increase of 35.31%, and a net profit attributable to shareholders of 1.154 billion yuan, up 71.96% [1] - In Q1 2025, the company reported revenue of 4.312 billion yuan, a year-on-year growth of 80.31%, and a net profit of 921 million yuan, reflecting a staggering increase of 339.22% [1] - The company forecasts a net profit growth of no less than 30% quarter-on-quarter for Q2 2025, with a year-on-year increase exceeding 360% for the first half of 2025 [2] Group 2: Market Position and Strategy - Shenghong Technology has capitalized on the AI boom, with over 40% of its revenue in Q1 2025 coming from AI computing and data center-related products, holding the largest market share in AI computing cards globally [1] - The competitive landscape in the domestic PCB industry for AI servers is relatively stable, with companies at various stages of production and development; Shenghong Technology has achieved large-scale production of AI server-related PCB products and has entered the supply chain of top global server clients [2] Group 3: Stock Performance - Since January 2024, Shenghong Technology's stock price has increased by over 10 times [3] - As of July 29, 2023, the stock price closed at 189.25 yuan per share, with a market capitalization of 163.3 billion yuan [4]

智通财经APP获悉，中信证券发布研报称，PCB正交背板作为解决AI算力集群中计算单元与网络单元间 带宽瓶颈的潜在方案，在速率、集成度、散热、稳定性、布线等方面具备优势。由于其超大尺寸+超高 层数的设计远超常规产品，可能带来PCB单位价值量的显著提升，并成为行业长期供需紧张的核心驱动 力。具备领先技术实力的PCB厂商有望优先受益，推荐首选AI算力供应链敞口大、客户导入预期明确的 头部公司，并关注随AI高ROE产值释放，PB估值还有提升空间的公司。 如何看待正交背板给PCB带来的潜在市场空间？预测2027-28年潜在市场需求80-200亿元，较2026年有 望带来12~29%需求增量 中信证券认为，PCB正交背板有望于2027~28年逐步落地应用。从设计初期方案来看，英伟达PCB正交 背板有可能采用70层以上的超高多层的设计，并使用M9级别覆铜板，CCL用量/规格、PCB加工难度显 著提升。这种70层以上PCB因超大尺寸+超高层数将消耗大量高速覆铜板，且在良率控制、阻抗一致 性、散热设计等方面远超常规产品，有可能带来PCB单位价值量的显著提升。 以NVL576机柜为例，估测单机柜PCB总价值量将达到约80-100 ...

Group 1: Investor Relations Activities - The investor relations activity involved 10 individual investors participating in a site visit at Shenghong Technology (Huizhou) Co., Ltd. on July 21, 2025 [1][2] - The event included a presentation by the CEO, Zhao Qixiang, introducing the company's basic situation [1] Group 2: AI Server PCB Market - The current competitive landscape for domestic PCB companies in the AI server sector is characterized by a tiered development pattern: some companies have achieved large-scale production, while others are in small-batch production or in the R&D phase [1] - Shenghong Technology has successfully entered the global supply chain of top-tier server clients with its large-scale production of AI server-related PCB products [1] Group 3: Company Developments - The company's private placement of shares is progressing smoothly, having received approval from the Shenzhen Stock Exchange, pending further approval from the China Securities Regulatory Commission [3] - The new factory (Factory No. 4) has officially commenced production as of mid-June, with confidence in future production efficiency and benefits [3] - The company emphasizes long-term capability building and global strategic alignment, focusing on technological upgrades to drive market breakthroughs and maintaining a stable supply chain and customer service [3] Group 4: Disclosure Information - The investor relations activity did not involve any undisclosed significant information [3]

Summary of PCB Industry and Company Insights Industry Overview - The PCB sector is optimistic, with domestic companies like Huadian, Pengding, Shenghong, and Shennan having valuations lower than US counterparts like TTM, despite surpassing them in manufacturing processes and profitability, indicating a golden era for high-end PCBs with significant investment potential [1][4] - The core growth logic of the PCB industry is based on tight supply and demand, with traditional high-end HDI facing price increases, and leading manufacturers acknowledging the need for price adjustments [5] - The overall trend in the PCB industry is positive, characterized by clear industry trends, tight supply, and no disruptive new technologies, making it a favorable investment direction [16] Key Companies and Their Insights Huadian (沪电) - Positioned as a leading domestic PCB manufacturer, with significant capacity but unable to meet the projected market demand of 80 billion by 2026, leading to a shift of orders to companies with new or sufficient capacity [5][18] Pengding (鹏鼎) - Actively expanding capacity through projects in Thailand and Huai'an, with a strong performance in Q2, indicating long-term investment value [15][19] - Entering the overseas computing PCB market, leveraging liquid cooling technology, and maintaining strong business relationships with international companies [15][19] Shenghong (盛宏) - Recognized as the strongest supplier for Nvidia, with PCB demand expected to grow from 14 billion RMB in 2025 to 20 billion RMB in 2026, indicating a significant market opportunity [6] Shennan (深南电路) - Notable for high AI revenue purity, with over 60% of income from AI-related products, and strong growth expectations, potentially doubling revenue by 2026 [8][18] - Achieved significant progress in NV business, with potential revenue increases from partnerships with major tech companies like Google and AMD [12][18] - Currently viewed as having the largest expected discrepancy in the PCB sector, making it a key focus for investment [12][18] Market Dynamics - Nvidia's PCB demand is a core growth area, with significant increases expected in the coming years, driven by new architectures and product innovations [6] - The ASIC sector is projected to double its market size to 32 billion by 2026, with major contributions from companies like Google and Meta [7] - The switch market is also expanding, with expected revenues exceeding 1 billion RMB, contributing to overall growth in the PCB sector [10] Investment Considerations - Companies should be evaluated based on their existing capacity, expansion efforts, and progress in verification to identify suitable investment opportunities [17] - The PCB sector is expected to continue its upward trend, particularly with the growth of overseas computing and the release of large models, which will further drive market growth [20] Conclusion - The PCB industry presents a robust investment landscape, with key players like Huadian, Pengding, Shenghong, and Shennan poised for growth amid increasing demand and technological advancements. The focus on AI and ASIC applications further enhances the sector's attractiveness for investors.

Market Outlook - The global printed circuit board (PCB) market is expected to grow by 6.8% in value and 7.0% in shipment volume in 2025, driven by increased demand in sectors like mobile phones, servers, and communications [2] - The company anticipates a significant increase in sales orders in high-demand areas, particularly in high-layer boards for communications and servers, as well as high-density interconnect (HDI) boards for mobile phones [2] Capacity and Production - Current overall capacity utilization is approximately 85% [3] - The company is accelerating the release of high-layer PCB capacity in its Zhuhai plants and is planning to establish a new HDI factory in Jiangmen to meet customer demand [3][4] - Ongoing construction of a production base in Thailand aims to enhance the overseas production network [3] Profitability Improvement Measures - The company is focusing on high-value customers and orders, optimizing the sales structure by eliminating loss-making orders and increasing the proportion of high-margin orders [4] - Strengthening the sales team by recruiting experienced professionals and implementing performance incentives to boost sales efficiency [4] - Enhancing cost management through standardized cost control measures and improving material utilization [5] - Innovating product offerings to meet high-value customer demands, particularly in high-frequency and high-reliability PCB products [5] Financial Strategy - The company aims to improve operational performance to support the conversion of convertible bonds, ensuring a stable cash flow for repayment [6] - A flexible exit strategy for convertible bonds will be maintained, adapting to market conditions and investor needs [6] Raw Material Cost Management - The company is facing rising raw material costs, particularly for copper and other key materials, and is implementing measures to mitigate these pressures [7] - Strategies include dynamic cost monitoring, improving material efficiency, and selectively raising prices for certain products [8] U.S. Market Exposure - Currently, approximately 10% of the company's revenue comes from the U.S. market [9] - The company is diversifying its market presence to reduce reliance on the U.S. market, with domestic sales exceeding 50% [9] - Strategies to address U.S. tariffs include optimizing customer cooperation terms and accelerating the establishment of overseas production bases [10]

Core Viewpoint - The company is expected to achieve a significant increase in net profit for 1H25, driven by the rising demand for high-end PCBs related to AI applications, despite facing challenges such as foreign exchange pressures and tariff conflicts [1][2]. Financial Performance - The company anticipates a net profit of 1.65-1.75 billion yuan for 1H25, representing a year-on-year growth of 45-53%. In 2Q25, the net profit is projected to be 0.89-0.99 billion yuan, reflecting a year-on-year increase of 42-58%, marking a historical high for the company in a single quarter [1]. - The net profit forecasts for 2025, 2026, and 2027 have been raised by 3%, 19%, and 30% respectively, now estimated at 3.83 billion, 5.41 billion, and 6.47 billion yuan [4]. Market Position and Demand - The company has established a strong position with core cloud customers, benefiting from the rapid growth in PCB demand from overseas cloud service providers. The anticipated launch of new ASIC chip projects by major cloud players like Google, Amazon, and Meta is expected to generate an additional 13.4 billion yuan in PCB demand by 2026 [2]. - The company is well-positioned to secure more high-end AI PCB orders from cloud customers in the upcoming periods, contributing to revenue growth [2]. Capacity and Production - The company has been operating at full capacity due to strong demand from AI clients. However, concerns regarding production capacity bottlenecks have been raised. Increased capital expenditure (approximately 2.1 billion yuan from 3Q24 to 1Q25) is expected to alleviate these bottlenecks starting in 2H25, allowing for continued profit growth [3]. Valuation and Target Price - The target price has been raised to 72.80 yuan, maintaining a "buy" rating. This adjustment reflects the better-than-expected demand for ASIC AI server PCBs and the anticipated easing of capacity constraints [4].

Core Viewpoint - The Shanghai Stock Exchange's Listing Review Committee has approved the initial public offering of Super Electronics Circuit Co., Ltd, confirming that it meets the issuance, listing, and information disclosure requirements [1] Group 1: Company Overview - Super Electronics specializes in a wide range of products used in automotive electronics, displays, storage, consumer electronics, and communications, including double-sided boards, 26-layer boards, HDI boards, thick copper boards, metal substrates, and high-frequency high-speed boards [1] - The company primarily focuses on automotive electronic PCBs and is one of the few domestic companies capable of mass-producing multi-layer HDI and any-layer interconnected HDI automotive electronic boards [1] Group 2: Partnerships and Applications - Super Electronics has established stable partnerships with global Tier 1 automotive suppliers such as Continental, Valeo, Bosch, and Aptiv, as well as well-known new energy vehicle manufacturers like Tesla [1] - In traditional fuel vehicle applications, Super Electronics' products cover various PCB needs across the vehicle, including power control systems, central control systems, electronic dashboards, lighting systems, seat control systems, radar systems, and navigation systems, with applications in luxury car brands like Bentley, Porsche, Ferrari, Mercedes-Benz, BMW, Audi, Volkswagen, and Toyota [1] Group 3: New Energy Vehicles and Technology - In the new energy vehicle sector, Super Electronics focuses on cutting-edge product technology development, with applications in battery management systems, motor controllers, intelligent driving systems, intelligent cockpit domain controllers, and charging piles [2] - The company employs advanced technologies such as plasma degluing, pulse plating, selective plating, ultra-low loss materials, and asymmetric pressing to produce "high-frequency millimeter-wave radar boards," which are currently used in numerous well-known automotive production models [2] Group 4: Display and Storage Applications - In the display sector, Super Electronics collaborates with major PCB manufacturers like Zhi Chao and JandK Technology, and has established long-term stable partnerships with leading display panel manufacturers such as BOE and LG Group, with products used in LCD, OLED, and Mini LED displays [2] - In the storage domain, Super Electronics' products are primarily used in mechanical hard drives, solid-state drives, and memory modules, maintaining stable partnerships with leading global mechanical hard drive manufacturers like Seagate and Western Digital, as well as renowned solid-state drive manufacturers like SK Hynix [2]

Core Viewpoint - The article highlights the rapid growth of a PCB (Printed Circuit Board) company in Huangshi, Hubei, driven by AI technology, with over 10 billion in revenue in three years and a high debt ratio [1]. Group 1: Company Overview - The PCB company in Huangshi has achieved revenue exceeding 10 billion within three years, indicating strong market demand and operational efficiency [1]. - The company is leveraging AI technology to enhance its production processes and product offerings, positioning itself as a leader in the PCB industry [1]. Group 2: Financial Performance - The company has a high debt ratio, which may pose risks to its financial stability despite its impressive revenue growth [1]. - The rapid revenue growth suggests a robust business model, but the high debt levels warrant close monitoring of financial health [1].

Summary of Conference Call Records Industry Overview - The conference call discusses the rapid growth of the AI computing market, particularly in the ASIC and PCB sectors, with a significant increase in demand expected due to AI servers and advanced switches [1][2][3]. Key Points and Arguments - **Market Growth Projections**: The PCB market is projected to exceed 50 billion yuan by 2025 and is expected to surpass 100 billion yuan by 2027, with AI servers accounting for over half of this demand [1][9]. - **ASIC Market Expectations**: Marvell has raised its ASIC market forecast to 55.4 billion USD by 2028, a 29% increase from previous estimates. Broadcom anticipates that the ASIC demand from three major clients will reach 60-90 billion USD by 2027 [1][2][8]. - **Supply-Demand Gap**: The PCB industry is expected to face a supply-demand gap, with a projected 10% shortfall in 2026 and 16% in 2027, primarily driven by unexpected AI demand surges [1][10]. - **Switch Upgrades**: The transition from 400G to 800G switches is leading to a significant increase in PCB demand, with 800G products having 6-8 more layers and costing 2-3 times more than 400G products [3][4]. Challenges in Production Expansion - **Challenges in Southeast Asia**: PCB manufacturers are expanding in Southeast Asia but face challenges such as talent shortages, inadequate infrastructure, and insufficient raw material supply, which slow down the expansion process [5][6]. - **Domestic Expansion**: Domestic PCB companies are expected to ramp up production from late 2025 to 2026, but this will not fully meet the surging demand driven by AI [7][10]. Company-Specific Insights - **Leading Companies**: Companies like Huadian (沪电) are highlighted as key players, with a projected output exceeding 30 billion yuan after capacity expansion. They are increasing CAPEX and collaborating closely with major clients like Google, AWS, and Meta [3][11]. - **Opportunities for Second-Tier Manufacturers**: Second-tier manufacturers, despite entering the market later, have significant opportunities due to the overall market growth. As long as they can expand capacity, they are likely to succeed [12]. Additional Important Information - **Talent and Infrastructure Issues**: The talent shortage in Thailand is a significant barrier, with a need for over 3,000 engineers by 2027, compounded by lengthy visa processes. Additionally, the high cost and instability of commercial utilities in Thailand affect production efficiency [5][6]. - **Future Demand Dynamics**: The demand for AI servers is expected to grow from less than 10 billion yuan in 2024 to over 60 billion yuan by 2027, significantly impacting PCB demand [9]. This summary encapsulates the critical insights from the conference call, focusing on the growth trajectory of the AI computing market, the challenges faced by PCB manufacturers, and the strategic positioning of key companies within the industry.