Core Insights - Shengyi Electronics has been focused on the research, production, and sales of various printed circuit boards (PCBs) since its establishment in 1985, targeting the mid-to-high-end application market with products characterized by high precision, density, and reliability [1] - The rapid development of artificial intelligence (AI) technology is increasing the performance requirements for PCBs, driving accelerated technological upgrades in the industry. The company is actively innovating by forming specialized teams to ensure the smooth progress of core projects and strategic initiatives [1] - The company is advancing the industrialization of key projects such as AI servers, 800G switches, and satellite communication PCBs, while also establishing a professional technical service team to enhance the alignment of technological research with market demands [1] Project Developments - In the first half of 2025, the company has initiated several new projects, including the development of next-generation high-end optical communication core components, intelligent cockpit modules, and general computing architecture platforms, which are widely applied in fields such as networking, satellite communication, consumer electronics, high-end servers, smart automotive electronics, and new energy [2] - The demand for AI chips is strong, and the continuous iteration of chips is driving demand in the PCB sector. According to Omdia, the rapid growth of GPUs and other acceleration chips for cloud computing and data centers will eventually slow down, but not before significantly impacting the industry [2] - Server PCB products must keep pace with the generational updates of server chips, with product lifecycles typically ranging from 3-5 years and maturity periods of 2-3 years. The requirements for signal transmission rates, data transmission loss, and wiring density are increasing with each generation of chip platforms, necessitating corresponding upgrades in server PCBs [2] Financial Projections - The company is projected to achieve revenues of 9.46 billion yuan, 13.08 billion yuan, and 17.27 billion yuan for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 1.514 billion yuan, 2.340 billion yuan, and 3.145 billion yuan, reflecting year-on-year growth rates of 356.0%, 54.6%, and 34.4% [3] - Corresponding price-to-earnings (PE) ratios for 2025, 2026, and 2027 are estimated to be 55 times, 36 times, and 27 times, respectively, with an initial coverage rating of "Buy" [3]

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - Broadcom has launched the first 102.4Tbps super chip, which doubles the bandwidth of current Ethernet switches. This chip, named Tomahawk 6, is designed for the AI era and can support ultra-large GPU clusters, driving up to 100,000 GPUs simultaneously. The theoretical peak bandwidth of Tomahawk 6 is 102Tbps, equivalent to processing 25,000 4K movies per second, achieving a sixfold throughput improvement over the previous Tomahawk 5 chip [4] - The acceleration of AI infrastructure construction is highlighted, with major internet companies like Amazon and Google investing in self-developed ASIC chips. Google's seventh-generation TPU (Ironwood) can scale to a cluster of 9,216 chips, with performance twice that of the sixth-generation TPU (Trillium) and energy efficiency nearly 30 times higher than Google's first Cloud TPU from 2018. Amazon's Trainium2 chip, set to be deployed in data centers by the end of 2024, boasts a fourfold performance increase and a threefold memory capacity increase compared to its predecessor [5] - The demand for server PCBs continues to grow under AI infrastructure, as server PCB products need to keep pace with the generational updates of server chips. The product lifecycle is generally 3-5 years, with a maturity period of 2-3 years. As the requirements for signal transmission rates, data transmission loss, and wiring density increase with each generation of chip platforms, server PCB products must also be upgraded accordingly. Companies involved in AI infrastructure construction include Jingwang Electronics, Shengyi Technology, Huitian Technology, and Shengyi Electronics [6]