Core Viewpoint - The company, Shenzhen Circuit, reported a broad and diverse range of products in its packaging substrate business, indicating growth in demand across various downstream sectors, particularly in storage packaging substrates [1] Group 1: Business Overview - The packaging substrate products include module packaging substrates, storage packaging substrates, and application processor chip packaging substrates [1] - These products are primarily used in mobile smart terminals, servers, and storage fields [1] Group 2: Financial Performance - In the third quarter of 2025, the revenue from packaging substrates increased sequentially, with notable growth in demand across all downstream sectors [1] - The most significant growth was observed in the storage packaging substrate segment [1]

人民财讯12月2日电，深南电路（002916）12月2日在机构调研中表示，公司封装基板业务产品覆盖种类 广泛多样，包括模组类封装基板、存储类封装基板、应用处理器芯片封装基板等，主要应用于移动智能 终端、服务器/存储等领域。2025年第三季度，封装基板营业收入环比增加，各下游领域产品需求均有 增长，其中存储类封装基板增长最为显著。 ...

Group 1: Financial Performance - In Q3 2025, the company achieved a revenue of 6.301 billion CNY, representing a year-on-year growth of 33.25% [1] - The net profit attributable to shareholders reached 966 million CNY, with a year-on-year increase of 92.87% [1] - The non-recurring net profit accumulated to 916 million CNY, showing a year-on-year growth of 94.16% [1] Group 2: Gross Margin Improvement - The overall gross margin improved in Q3 2025, primarily due to increased demand for storage packaging substrates and enhanced capacity utilization [2] - The revenue scale and gross margin of packaging substrates showed significant improvement, aided by the steady ramp-up of the Guangzhou factory [2] Group 3: Business Expansion in PCB Sector - The PCB business focuses on communication equipment, with key expansions in data centers (including servers) and automotive electronics [3] - Revenue from data centers and wired communication businesses continued to grow, maintaining a consistent share across various sectors compared to the first half of the year [3] Group 4: Packaging Substrate Business Growth - The packaging substrate business includes a wide range of products, with significant revenue growth in storage packaging substrates in Q3 2025 [4] - All downstream product demands showed growth, particularly in storage packaging substrates [4] Group 5: Capacity Utilization - The overall capacity utilization remained high in Q3 2025, with a noticeable increase in the utilization rate of packaging substrate business due to rising demand [5] Group 6: New Factory Developments - New factories include the Nantong Phase IV and Thailand projects, with the Thailand factory currently in trial production and Nantong Phase IV expected to commence in Q4 2025 [6] - These new facilities will enhance PCB production capabilities, particularly in high-layer and HDI technologies [6] Group 7: Raw Material Price Changes - Key raw materials such as copper foil and gold salt saw price increases in Q3 2025 due to fluctuations in commodity prices [7] - The company will continue to monitor international commodity price changes and maintain communication with suppliers and customers [7] Group 8: Land Planning in Wuxi - The new land in Wuxi is designated for PCB-related products, with investments planned in phases based on business development and market conditions [8]

Group 1: Financial Performance - In Q3 2025, the company achieved a revenue of 63.01 billion yuan, representing a year-on-year growth of 33.25% [1] - The net profit attributable to shareholders reached 9.66 billion yuan, with a year-on-year increase of 92.87% [1] - The non-recurring net profit totaled 9.16 billion yuan, reflecting a growth of 94.16% year-on-year [1] Group 2: Gross Margin Improvement - The overall gross margin showed improvement in Q3 2025, driven by increased demand for storage packaging substrates and enhanced capacity utilization [2] - The revenue from PCB data centers and wired communication businesses continued to grow, contributing to a slight increase in gross margin [2] Group 3: Business Expansion in PCB Sector - The PCB business focuses on communication equipment, with significant expansion in data centers and automotive electronics [3] - Revenue from data centers and wired communication businesses continued to grow, maintaining a consistent share compared to the first half of the year [3] Group 4: Packaging Substrate Business Growth - The packaging substrate business includes a wide range of products, with significant revenue growth in storage packaging substrates in Q3 2025 [4] - All downstream product demands showed growth, particularly in storage packaging substrates [4] Group 5: Technological Capabilities and Project Progress - The company has achieved mass production capabilities for FC-BGA substrates with 20 layers or fewer, while R&D for 22-26 layer products is on schedule [5] - The Guangzhou packaging substrate project is gradually reducing losses as various orders enter production [5] Group 6: New Factory Developments - New factories in Nantong Phase IV and Thailand are under construction, with the Thailand factory already in trial production [6] - These facilities will enhance PCB production capacity and capabilities [6] Group 7: Raw Material Price Changes - Key raw materials such as copper foil and gold salt saw price increases in Q3 2025 due to commodity price fluctuations [7] - The company is monitoring international commodity prices and maintaining communication with suppliers and customers [7] Group 8: Land Planning in Wuxi - The new land in Wuxi is designated for PCB-related product storage, with phased investment planned based on business development and market conditions [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Insights - The company's packaging substrate business has shown significant growth, particularly in storage packaging substrates, driven by increased demand and improved capacity utilization [5] - The company is expanding its PCB production capacity with new facilities in Nantong and Thailand, which will enhance its capabilities in high-layer and HDI PCB technologies [6] - There is a notable increase in demand for optical modules, particularly in the communication and data center sectors, which is expected to optimize the product structure of the PCB business [6] Financial Projections - The projected revenues for the company are 233.2 billion, 290.2 billion, and 360.6 billion yuan for the years 2025, 2026, and 2027 respectively, with net profits of 33.3 billion, 44.1 billion, and 55.0 billion yuan for the same years [7] - The expected growth rates for revenue are 30.22% in 2025, 24.45% in 2026, and 24.27% in 2027 [9] - The earnings per share (EPS) are projected to be 4.99 yuan, 6.61 yuan, and 8.25 yuan for the years 2025, 2026, and 2027 respectively [11]

Core Viewpoint - Deep South Circuit achieved a net profit attributable to shareholders of 2.326 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 56.30% [1] - In Q3, the net profit attributable to shareholders was 966 million yuan, showing a year-on-year growth of 92.87% and a quarter-on-quarter increase of 11.16% [1] Group 1: Financial Performance - The strong demand for AI and significant growth in storage packaging substrates drove the record high performance in Q3 [1] - The company's PCB business benefited from the booming global computing infrastructure, leading to substantial growth in related demand [1] Group 2: Product and Business Growth - The company saw continuous growth in shipments of products related to high-speed switches, optical modules, and AI accelerator cards [1] - In the packaging substrate business, products include module packaging substrates, storage packaging substrates, and application processor chip packaging substrates, with notable growth in storage packaging substrates [1] Group 3: Operational Developments - Key customer projects for next-generation high-end DRAM products progressed significantly, driving revenue growth in the packaging substrate business [1] - The Guangzhou Guangxin factory is steadily ramping up production, alongside the expansion of PCB data center and wired communication businesses, optimizing product structure and enhancing overall gross margin [1] - The company maintains a "buy" rating [1]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported significant year-on-year growth in performance, with a revenue increase of 28.39% to 16.754 billion yuan and a net profit increase of 56.30% to 2.326 billion yuan for the first three quarters of 2025. The gross margin and net margin were 28.20% and 13.90%, respectively [2][4]. - In Q3 2025, the company achieved a revenue of 6.301 billion yuan, reflecting a year-on-year growth of 33.25% and a quarter-on-quarter growth of 11.11%. The net profit for the quarter was 966 million yuan, showing a year-on-year increase of 92.87% and a quarter-on-quarter increase of 11.20%. The gross margin and net margin for the quarter were 31.39% and 15.35%, respectively [2][4]. - The company benefits from the demand for AI computing upgrades, structural growth in the storage market, and increased demand for automotive electronics. The demand for AI accelerator cards, switches, optical modules, servers, and related products continues to rise, contributing to revenue growth [9]. - The company emphasizes a long-term strategy of technological leadership, with R&D investment accounting for 7.36% of revenue in Q3 2025. Ongoing projects include advancements in next-generation communication, data center, and automotive electronics PCB technologies [9]. - The company is expected to achieve net profits of 3.467 billion yuan, 5.056 billion yuan, and 7.025 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 41.24, 28.28, and 20.36 [9]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved total revenue of 16.754 billion yuan and a net profit of 2.326 billion yuan, with respective year-on-year growth rates of 28.39% and 56.30% [2][4]. - In Q3 2025, the company reported revenue of 6.301 billion yuan and a net profit of 966 million yuan, with year-on-year growth rates of 33.25% and 92.87% [2][4]. Market Position and Strategy - The company is recognized as a leading player in the PCB industry in China and a pioneer in the packaging substrate sector. The demand for products in the communication and data center sectors is expected to drive future growth [9]. - The company maintains a focus on technological innovation and R&D, with significant investments aimed at enhancing its product offerings and market competitiveness [9].