Core Viewpoint - The PCB sector in A-shares is experiencing a strong upward trend driven by the explosive growth of AI applications, with significant performance improvements expected in the industry [1][3]. Group 1: Industry Performance - As of January 21, 2026, the PCB sector index has seen a cumulative increase of over 8% since the beginning of the year, with a daily rise of 3.77% on January 21 [1][4]. - The demand for high-end circuit boards, particularly HDI and high-layer boards, is being driven by the rapid penetration of AI servers and smart driving technologies [3]. - The global PCB market is projected to grow by approximately 5.8% in 2024 and 6.8% in 2025, reaching an estimated value of about $94.661 billion by 2029, with a compound annual growth rate of around 5.2% [3]. Group 2: Financial Performance - As of January 20, 2026, PCB concept stocks have seen a net financing inflow of 1.674 billion yuan, with nine stocks, including Xingsen Technology and Yongda Photonics, having net purchases exceeding 100 million yuan [4]. - Among nearly 50 PCB stocks in A-shares, 37 companies reported year-on-year profit growth or reduced losses in the first three quarters of 2025, indicating a strong recovery in the industry [4]. - Jin'an Guoji expects a net profit of 280 million to 360 million yuan for 2025, representing a year-on-year increase of 655.53% to 871.40%, driven by improved market conditions and optimized product structure [5]. Group 3: Company Developments - Shenghong Technology anticipates a net profit of 4.16 billion to 4.56 billion yuan for 2025, reflecting a year-on-year growth of 260.35% to 295%, supported by large-scale production in AI computing and data center sectors [5]. - Shenzhen South Circuit achieved a net profit of 2.326 billion yuan in the first three quarters of 2025, setting a record for annual net profit since its listing, and is actively expanding production capacity [6]. - The entire PCB supply chain is benefiting, with Inno Laser reporting nearly 90 million yuan in orders for PCB forming equipment since 2025, indicating a prosperous industry landscape [6].

Core Insights - The rapid development of artificial intelligence technology is reshaping the global electronic manufacturing landscape, particularly benefiting the printed circuit board (PCB) industry, which is experiencing unprecedented growth opportunities [1] - The demand for high-end PCB products is surging, leading the entire industry chain into a new prosperity cycle, as indicated by the strong recovery momentum reflected in the mid-year performance forecasts of several listed companies [1] Industry Performance - The PCB industry chain is showing outstanding performance, with companies like Huadian Co. expecting a net profit of 1.65 billion to 1.75 billion yuan for the first half of 2025, representing a year-on-year growth of 44.63% to 53.40% [2] - Other companies such as Guanghe Technology, Pengding Holdings, Nanya New Materials, and Mankun Technology also forecasted net profit growth exceeding 40% year-on-year for the same period [2] - Nanya New Materials, a leading domestic copper-clad laminate company, anticipates a net profit of 80 million to 95 million yuan, reflecting a year-on-year increase of 44.69% to 71.82% [2] Capacity Utilization - Many leading companies maintain high capacity utilization rates, with Shenghong Technology reporting a high utilization level and significant orders for high-end HDI and multilayer products [2] - Pengding Holdings noted an improvement in capacity utilization compared to the previous year, while Zhongjing Electronics reported an overall order saturation of around 90% [2] High-End Capacity Expansion - PCB companies are accelerating the layout of high-end capacity in response to strong market demand, driven by the need for more complex and high-performance PCB products for AI and network infrastructure [3] - Shenghong Technology is expanding its high-end product capacity, including projects in Huizhou and overseas in Thailand and Vietnam, with the fourth factory project having commenced production in mid-June [3] - Huadian Co. plans to invest approximately 4.3 billion yuan in a new high-end PCB expansion project for AI chips, which started construction in late June [3] - Pengding Holdings is directing its capital expenditure towards projects in Thailand and high-end HDI expansions, with the first phase of the Thailand project already completed [3] - Dongshan Precision intends to invest up to 1 billion USD to enhance high-end PCB projects to meet long-term demands from clients in emerging scenarios like AI and high-speed computing servers [3] Market Characteristics - The current PCB market exhibits a structural characteristic of "high-end scarcity and low-end pressure," with products like copper-clad laminates and HDI experiencing simultaneous increases in both volume and price [4] - The production capacity of electronic-grade fiberglass cloth is currently at full capacity, indicating strong demand [4] - Companies like Chongda Technology are witnessing a continuous price rebound for high multilayer boards aimed at communication and server fields, as well as high-density interconnect boards for mobile phones [4]