Core Viewpoint - Aoshikang is expected to experience rapid revenue growth in the first half of 2025, despite losses from its Thailand factory impacting overall performance, maintaining a "buy" rating [1] Group 1: Revenue and Product Structure - The company's product structure is continuously optimizing with an increasing number of AI-related businesses [1] - Revenue from data centers and servers is on the rise, with stable mass deliveries of server CPU motherboards, storage boards, and cooling boards, as well as significant progress in GPU board groups with certain clients [1] - The automotive electronics product structure is upgrading, successfully establishing long-term stable partnerships with several well-known overseas Tier 1 manufacturers [1] Group 2: Market Penetration and Investment - The penetration rate of AIPC is continuously increasing, with the company being a key supplier for clients' desktop intelligent all-in-one products [1] - The company recently announced plans to issue convertible bonds to raise no more than 1 billion yuan for high-end printed circuit board projects, with a total planned investment of 1.82 billion yuan aimed at increasing high-layer and HDI capacity [1] - The ongoing expansion of high-end capacity is beneficial for the company's future penetration into AI-related clients, providing ample growth momentum [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6] Core Views - The company has experienced a turnaround in performance expectations, entering a phase of growth across multiple sectors, particularly in AI and automotive electronics [6][7] - The company is expanding its high-end production capacity, which is expected to drive long-term growth [8] Financial Performance Summary - In H1 2025, the company achieved a revenue of 2.565 billion yuan, representing a year-over-year increase of 19.43%. However, the net profit attributable to shareholders was 196 million yuan, down 11.96% year-over-year [6] - For Q2 2025, revenue was 1.401 billion yuan, up 19.65% year-over-year and 20.33% quarter-over-quarter. The net profit for Q2 was 84 million yuan, down 24.61% year-over-year and 25.56% quarter-over-quarter [6] - The gross margin for Q2 was 20.91%, a decrease of 2.95 percentage points year-over-year, and the net margin was 5.66%, down 3.81 percentage points year-over-year [6] Revenue and Profit Forecast - The forecast for net profit attributable to shareholders for 2025, 2026, and 2027 is 525 million, 745 million, and 987 million yuan respectively, with corresponding EPS of 1.66, 2.35, and 3.11 yuan [6][10] - The company expects a significant revenue increase in the coming years, with projected revenues of 5.552 billion, 7.199 billion, and 9.071 billion yuan for 2025, 2026, and 2027 respectively [10] Business Development - The company is diversifying its product structure, with significant growth in data center and server revenues, as well as automotive electronics [7] - The company has established stable partnerships with several well-known Tier 1 manufacturers in the automotive electronics sector [7] Capacity Expansion - The company is in the process of ramping up production capacity at its Thailand factory, which focuses on high-end PCB products for AI servers and automotive electronics [8] - A recent announcement indicated plans to issue convertible bonds to raise up to 1 billion yuan for high-end PCB projects, with a total planned investment of 1.82 billion yuan [8]

Core Insights - The company reported a revenue of 2,564,546,348.28 yuan for the first half of 2025, representing a year-on-year growth of 19.43%, while the net profit attributable to shareholders decreased by 11.96% to 195,849,763.7 yuan [2][4] - Total assets reached 8,468,050,642.4 yuan, a 5.26% increase compared to the previous year, while net assets attributable to shareholders saw a minimal increase of 0.01% [3][4] Financial Performance - Revenue for the first half of 2025 was 2,564,546,348.28 yuan, up from 2,147,370,990.70 yuan in the same period last year, marking a growth of 19.43% [4] - Net profit attributable to shareholders was 195,849,763.7 yuan, down from 222,453,160.53 yuan, reflecting a decline of 11.96% [4] - The net profit after excluding non-recurring gains and losses was 183,779,370.54 yuan, a decrease of 12.79% from 210,731,909.09 yuan [4] - The net cash flow from operating activities was 190,186,846.05 yuan, down 41.53% from 325,298,206.94 yuan [4] - Basic and diluted earnings per share were both 0.62 yuan, down 11.43% from 0.70 yuan [4] - The weighted average return on equity was 4.40%, a decrease of 0.89% from 5.29% [4] Industry Trends - The PCB industry continued to grow in the first half of 2025, driven by demand in sectors such as servers/data storage, communication infrastructure, and automotive [5] - According to Prismark, the global PCB industry is projected to reach a value of 78.563 billion USD in 2025, with a year-on-year growth of 6.8% [5] - By 2029, the global PCB industry value is expected to grow to 94.661 billion USD, with a compound annual growth rate of 5.2% from 2024 to 2029 [5] Product Development and Market Expansion - The company has a broad application range, focusing on data centers and servers, automotive electronics, and consumer electronics, while also expanding into energy, power, and industrial control medical sectors [5][6] - In the data center and server sector, the company has enhanced its market competitiveness by developing high-performance PCB products that meet the high demands for performance and reliability [5][6] - In the automotive electronics sector, the company is focusing on high-end products related to electric and intelligent vehicles, establishing long-term partnerships with international automotive brands and Tier 1 suppliers [6] - The consumer electronics sector is experiencing innovation driven by AI, with the company quickly entering the AI personal computer (AIPC) market and optimizing its product structure to meet evolving customer needs [7]