Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant year-on-year growth in revenue and net profit, driven by high demand in the computing power supply chain and improvements in operational efficiency [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 2.425 billion yuan, a year-on-year increase of 42.17%, and a net profit attributable to shareholders of 492 million yuan, up 53.91% [1]. - For Q2 2025, the company reported revenue of 1.308 billion yuan, a year-on-year growth of 41.96% and a quarter-on-quarter increase of 17.08%. The net profit for the same period was 251 million yuan, reflecting a year-on-year increase of 44.13% and a quarter-on-quarter growth of 4.51% [2]. Market Trends - The global PCB industry is expected to reach a market value of 79.128 billion USD in 2025, representing a year-on-year increase of 7.60% [2]. - The PCB market segments, particularly for multilayer boards with more than 18 layers, HDI, and packaging substrates, are projected to grow at rates of 41.70%, 12.90%, and 7.60% respectively [3]. Business Focus - The company specializes in the research, production, and sales of high-layer printed circuit boards (PCBs), with a significant focus on the server application market, which accounts for approximately 70% of its revenue [4]. - The company has achieved mass production capabilities for 46-layer PCBs and has validated the 7-stage HDI manufacturing process, allowing for high customization based on client needs [4]. Capacity and Production - The company's production capacity utilization rates are high, with the Guangzhou factory operating above 90% and the Huangshi factory exceeding 80%. The Thailand factory commenced operations in June 2025, with a projected annual output value of 2 billion yuan [4]. Earnings Forecast - Revenue projections for the company are 4.967 billion yuan in 2025, 5.895 billion yuan in 2026, and 6.803 billion yuan in 2027, with corresponding EPS estimates of 2.22, 2.67, and 3.11 yuan [5].

Investment Rating - The report assigns a "Buy" investment rating for the company, marking the first coverage of the stock [9]. Core Views - The company has demonstrated impressive performance with significant revenue and profit growth, driven by strong demand in the computing power supply chain and improvements in operational efficiency [5][6]. - The AI PCB market is experiencing high demand, particularly for server PCBs, which is expected to continue growing due to increased capital expenditure by global cloud service providers [6][8]. - The company is focused on the high-end application market for multi-layer printed circuit boards (PCBs), with a significant portion of its revenue derived from server-related applications [8]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of 2.425 billion yuan, a year-on-year increase of 42.17%, and a net profit attributable to shareholders of 492 million yuan, up 53.91% year-on-year [4]. - For Q2 2025, revenue reached 1.308 billion yuan, reflecting a 41.96% year-on-year growth and a 17.08% quarter-on-quarter increase [5]. Market Outlook - The global PCB industry is projected to reach a market value of 79.128 billion USD in 2025, with a year-on-year growth of 7.60% [6]. - The server-related PCB segment is expected to see the highest growth among all application areas, with a projected market value of 18.9 billion USD by 2029, representing a CAGR of 11.6% from 2024 to 2029 [6]. Production Capacity and Efficiency - The company specializes in the research, production, and sales of high-layer printed circuit boards, with approximately 70% of its revenue coming from server-related products [8]. - The production capacity utilization rates are high, with the Guangzhou factory operating above 90% and the Huangshi factory exceeding 80% [8]. Profit Forecast - Revenue forecasts for 2025, 2026, and 2027 are 4.967 billion yuan, 5.895 billion yuan, and 6.803 billion yuan, respectively, with corresponding EPS estimates of 2.22 yuan, 2.67 yuan, and 3.11 yuan [9][11].