Group 1 - The company aims to establish an integrated capability of "PCB - semiconductor - packaging" with automotive electronics as the foundation, focusing on high integration modular products [1] - In the first half of the year, the company achieved operating revenue of 2.579 billion yuan, a year-on-year increase of 7.64%, and a net profit attributable to shareholders of 384 million yuan, a year-on-year increase of 26.89% [1] - The PCB industry is experiencing high prosperity, with the company holding significant advantages in the automotive PCB sector while also expanding into AI, humanoid robots, low-altitude aircraft, AI smart glasses, and energy storage products [1] Group 2 - The deep integration of PCB and advanced packaging has become a core trend in the industry, addressing the dual challenges of "speed enhancement" and "power optimization" [2] - The company plans to invest 1.5 billion yuan to build a new generation PCB manufacturing base, producing embedded chip PCBs and enhancing high-end HDI product capacity [2] - The embedded PCB packaging technology is a semiconductor packaging technology that breaks through the physical boundaries of existing PCBs, integrating upstream and downstream value chains [2]

Core Viewpoint - The report from Dongguan Securities indicates that Shiyun Circuit's net profit attributable to shareholders and net profit after deducting non-recurring gains and losses for the first half of 2025 are projected to be 384 million and 357 million yuan respectively, representing year-on-year growth of 26.89% and 19.55% [1] Business Development - Business expansion and product structure optimization are driving the performance growth in the first half of the year [1] - The company is consolidating its automotive application base and actively promoting AI+ applications [1] Product Innovations - In the humanoid robot sector, the company's products cover various systems including central control, visual perception, joint drive, motion control, dexterous hands, and power management [1] - The company has secured new product design freezes and is preparing for mass production with a leading humanoid robot enterprise, referred to as Company F [1] - Collaborations with top domestic humanoid robot clients are ongoing, with new generation humanoid robot projects being validated [1] AI Glasses Development - In the AI glasses segment, the company has entered mass production supply for a project with a leading overseas client, referred to as Client M, while a new product certification phase is ongoing with a top domestic client, referred to as Client A [1] Factory Expansion - The construction of the Thailand factory has completed its main engineering phase, with ongoing installation of electromechanical equipment, and is expected to commence operations by the end of this year, focusing on high-layer and HDI products [1] Future Projects - The company plans to establish a new project called "Chip Innovation and Intelligence" around its headquarters in Heshan, with a total investment of approximately 1.5 billion yuan [1] - The main products will include chip-embedded PCBs and advanced HDI, with designed production capacities of 180,000 and 480,000 square meters per year, respectively, expected to commence production by mid-2026 [1]

Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock performance that will exceed the market index by more than 15% over the next six months [7]. Core Insights - The company achieved a revenue of 2.579 billion yuan in the first half of 2025, representing a year-on-year growth of 7.64%. The net profit attributable to shareholders was 384 million yuan, a 26.89% increase year-on-year, while the net profit after deducting non-recurring items was 357 million yuan, up 19.55% year-on-year [3][4]. - The growth in revenue is attributed to the expansion of new customers and products, as well as an optimization of the product structure, which has led to an increase in the average price of high-value products [4]. - The company's gross margin for the first half of 2025 was 22.72%, remaining stable year-on-year, while the net margin improved by 2.37 percentage points to 14.38% [4]. Business Development and Product Optimization - The company is consolidating its automotive application base and actively advancing AI+ applications. It has secured contracts with major domestic automotive clients for intelligent driving projects and has entered mass production supply [4]. - In the AI server sector, the company has achieved mass production capabilities for various products and has entered the supply chains of major players like NVIDIA and AMD [4]. - The company is also expanding its production capacity in Thailand, with a factory expected to commence operations by the end of this year, focusing on high-layer and HDI products [4]. Financial Forecast - The company is projected to achieve total revenue of 6.248 billion yuan in 2025 and 7.834 billion yuan in 2026, with net profits expected to reach 885 million yuan and 1.177 billion yuan respectively [5]. - The earnings per share (EPS) are forecasted to be 1.23 yuan for 2025 and 1.63 yuan for 2026, with corresponding price-to-earnings (PE) ratios of 32 and 24 [4][5].

Core Insights - The company reported a revenue of 2.579 billion yuan for H1 2025, representing a year-over-year increase of 7.64% [1] - The net profit attributable to shareholders reached 384 million yuan, with a year-over-year growth of 26.89% [1] - The gross margin and net margin were 22.72% and 14.38%, respectively [1] Financial Performance - In Q2 2025, the company achieved a revenue of 1.361 billion yuan, showing a year-over-year increase of 4.55% and a quarter-over-quarter increase of 11.83% [1] - The net profit attributable to shareholders for Q2 was 204 million yuan, reflecting a year-over-year growth of 5.23% and a quarter-over-quarter growth of 13.59% [1] - The gross margin and net margin for Q2 were 22.75% and 14.62%, respectively [1] Product Development and Market Position - The company has successfully developed a comprehensive automotive product matrix, including high-density interconnect (HDI) boards and millimeter-wave radar PCBs [1] - The company has entered the supply chains of leading automotive manufacturers such as Geely, Chery, and Li Auto, and has received certifications from international Tier 1 suppliers [1] - The performance outlook is positively influenced by the decline in North American new energy subsidies and the launch of new models by major clients [1] Expansion into AI and New Markets - The company has successfully entered the supply chains of NVIDIA and AMD through OEM partnerships, achieving mass production [2] - The company has secured new product contracts with humanoid robot client F and is advancing projects in low-altitude flying vehicles [2] - The company is providing one-stop supply solutions for AI smart glasses, with overseas projects already in mass production and domestic projects in the certification phase [2] Capacity Expansion - The company is planning to establish new manufacturing bases in Thailand and Heshan, with the Thailand factory expected to have an annual capacity of 1 million square meters [2] - The Heshan new manufacturing base is projected to have an annual capacity of 660,000 square meters, focusing on chip-embedded PCBs and high-end HDI [2] - Both facilities are expected to commence operations in late 2025 and mid-2026, respectively [2] Profit Forecast and Valuation - The company is projected to achieve net profits of 862 million yuan and 1.167 billion yuan for 2025 and 2026, respectively [2] - The corresponding price-to-earnings ratios are estimated at 30x for 2025 and 22x for 2026 [2] - A target price of 41 yuan is set for 2026, maintaining a "buy" rating [2]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company achieved a revenue of 2.579 billion yuan in the first half of 2025, representing a year-on-year growth of 7.64%, and a net profit of 384 million yuan, up 26.89% year-on-year [8] - Significant customer expansion has been noted, particularly in high-value products, with successful certifications from top-tier overseas clients and entry into the supply chains of major technology firms [8] - The company is strategically investing in new production lines, particularly in embedded PCB packaging technology, with a total investment of approximately 1.5 billion yuan planned for the "Chip Innovation Smart Carrier" project [8] - Revenue projections for 2025-2027 are estimated at 6.247 billion yuan, 7.730 billion yuan, and 8.980 billion yuan respectively, with corresponding net profits of 884 million yuan, 1.152 billion yuan, and 1.402 billion yuan [8] Financial Performance - The company reported a revenue growth rate of 2.0% in 2023, 11.1% in 2024, and is expected to achieve 24.4% in 2025 [7] - The net profit growth rate is projected at 14.2% for 2023, 36.2% for 2024, and 31.1% for 2025 [7] - Earnings per share (EPS) are forecasted to be 0.93 yuan in 2023, increasing to 1.23 yuan in 2025 and reaching 1.95 yuan by 2027 [7] Market Performance - The company's stock has shown a market performance of -4% over the last 12 months, while the industry benchmark (CSI 300) has seen a performance of 21% [4]