Group 1: Company Performance - The company achieved a revenue of 10.73 billion yuan in 2024, representing a year-on-year growth of 35.3%, with a CAGR of 22.5% from 2019 to 2024 [1] - The net profit attributable to shareholders reached 1.15 billion yuan in 2024, showing a year-on-year increase of 72.0%, with a CAGR of 20.0% from 2019 to 2024 [1] - In Q1 2025, the company reported a revenue of 4.31 billion yuan, up 80.3% year-on-year, and a net profit of 0.92 billion yuan, reflecting a significant growth of 339.2% [1] Group 2: Industry Growth - The global PCB market is projected to grow from 73.565 billion USD in 2024 to 94.661 billion USD by 2029, with a CAGR of 5.2% [2] - The market for PCBs with 18 layers and above is expected to reach 5.02 billion USD by 2029, growing at a CAGR of 15.7% from 2024 to 2029 [2] - The global HDI market is anticipated to grow from 10.54 billion USD in 2023 to 14.83 billion USD by 2028, with a CAGR of 7.1% [2] Group 3: Demand Drivers - The PCB market for servers and data storage is expected to reach 10.9 billion USD in 2024 and 18.9 billion USD by 2029, with a CAGR of 11.6% [3] - The PCB market for AI/HPC server systems is projected to grow from nearly 0.8 billion USD in 2023 to 3.17 billion USD by 2028, with a CAGR of 32.5% [3] - High-end HDI products are expected to be the fastest-growing segment in the PCB market related to AI servers over the next five years [3] Group 4: Strategic Positioning - The company has entered the supply chains of major North American cloud giants such as NVIDIA, AMD, Intel, Tesla, Microsoft, Bosch, Amazon, and Google [4] - The company is prepared for high-end AI data center products and has achieved mass production of advanced HDI and multi-layer products [4] - The company is expected to capture a significant market share in the AI PCB wave due to its leading technology, production yield, and rapid delivery capabilities [4] Group 5: Profit Forecast - The company is projected to achieve net profits of 5.535 billion yuan, 7.012 billion yuan, and 8.591 billion yuan from 2025 to 2027, with corresponding P/E ratios of 16.52, 13.04, and 10.65 [4]

Core Viewpoint - The company, Shenghong Technology, is making significant investments to enhance its core competitiveness and ensure sustainable development, particularly in response to the growing demand for AI computing hardware [1][4]. Group 1: Investment Plans - Shenghong Technology plans to invest no more than 3 billion yuan in 2025 for fixed assets and intangible assets, focusing on new factory construction, equipment procurement, and automation line upgrades [1][4]. - The investment is seen as a strategic move to accelerate the release of AI computing hardware capacity and deepen global expansion [1][4]. Group 2: Financial Performance - In Q1 2025, Shenghong Technology achieved a revenue of 4.312 billion yuan, representing an 80.31% year-on-year increase, and a net profit of 921 million yuan, up 339.22% year-on-year [2][3]. - For the full year 2024, the company reported a revenue of 10.73 billion yuan, a 35.31% increase, and a net profit of 1.154 billion yuan, a 71.96% increase [2][3]. - The company's gross margin rose to 33.37%, up 13.89 percentage points year-on-year, while the net margin reached 21.35%, up 12.58 percentage points year-on-year, significantly exceeding the global PCB industry average of 10%-15% [2][3]. Group 3: Market Outlook - Shenghong Technology anticipates continued growth in downstream industries such as automotive electronics and server/data storage, driven by AI, which will support high growth in multilayer boards and packaging substrates [3]. - The company expects a quarter-on-quarter net profit growth of no less than 30% in Q2 2025, with a year-on-year increase exceeding 360% for the first half of 2025 [3]. Group 4: Capacity Expansion and Globalization - To meet the surge in orders, Shenghong Technology is accelerating capacity expansion, with plans to raise up to 1.98 billion yuan through a stock issuance for overseas projects in Vietnam and Thailand [4]. - The company has a strong order backlog and a good capacity utilization rate, with new capacity expected to come online in June 2025, significantly enhancing its high-end HDI and multilayer production capabilities [4]. - Shenghong Technology has been focusing on globalization, with over 50% of its orders coming from overseas, achieved through acquisitions and investments in foreign factories [4]. Group 5: R&D and Innovation - The company has invested over 2 billion yuan in R&D since its listing, establishing comprehensive technological capabilities across the PCB industry chain [4][5]. - Shenghong Technology holds 399 patents, with innovations in AI computing, robotics, low-altitude economy, and autonomous driving, and has established partnerships with leading companies in the humanoid robotics sector [5]. - The company plans to continue increasing R&D investment to enhance product competitiveness and provide high-quality products and services to global customers [5].