Core Viewpoint - NVIDIA is a leading global computer technology company focused on GPU and AI computing, providing hardware, software, and solutions [1] Group 1: Industrial Fulian - Industrial Fulian provides AI server and GPU accelerator card assembly services for NVIDIA [1] - The company was listed on the Shanghai Stock Exchange in June 2018 and specializes in high-end smart manufacturing and industrial internet solutions [1] - In the past year, Industrial Fulian achieved a revenue of 609.135 billion, a year-on-year increase of 27.88%, with a five-year compound annual growth rate (CAGR) of 8.98% [3] Group 2: Ruikeda - Ruikeda specializes in the development of RF blind-mate connectors for 5G, becoming the preferred solution for 5G base station AAU connectors [5] - The company was listed on the Shanghai Stock Exchange in July 2021 and focuses on connector products [5] - In 2024, Ruikeda's total revenue reached 2.415 billion, a year-on-year increase of 55.29%, with a five-year CAGR of 41.03% [6] Group 3: Wolong Materials - Wolong Materials is a leading domestic company engaged in the research and manufacturing of polymer radiation-modified new materials, supplying high-density copper cables to NVIDIA [7] - The company was listed on the Shenzhen Stock Exchange in April 2007 [7] - In 2024, Wolong Materials achieved a total revenue of 6.927 billion, a year-on-year increase of 21.03%, with a five-year CAGR of 14.04% [10] Group 4: Huitian Technology - Huitian Technology is one of the largest and most technically advanced PCB manufacturers in China, with a high market share in AI server motherboards [14] - The company was listed on the Shenzhen Stock Exchange in August 2010 [14] - In 2024, Huitian Technology's total revenue was 13.342 billion, a year-on-year increase of 49.26%, with a five-year CAGR of 15.64% [16] Group 5: Yingweike - Yingweike is a leading provider of precision temperature control energy-saving equipment, with over 50% market share in MLCP cold plates, compatible with NVIDIA's GB300 high-pressure circulation system [18] - The company was listed on the Shenzhen Stock Exchange in December 2016 [18] - In 2024, Yingweike achieved a total revenue of 4.589 billion, a year-on-year increase of 30.04%, with a five-year CAGR of 28.12% [21] Group 6: Zhongji Xuchuang - Zhongji Xuchuang is a global leader in optical module solutions and an important supplier of NVIDIA's 800G optical modules [22] - The company was listed on the Shenzhen Stock Exchange in April 2012 [24] - In 2024, Zhongji Xuchuang's total revenue reached 23.862 billion, a year-on-year increase of 122.64%, with a five-year CAGR of 35.64% [24] Group 7: Tianfu Communication - Tianfu Communication is a leader in the optical fiber connection niche market and an important supplier of NVIDIA's 800G optical modules [27] - The company was listed on the Shenzhen Stock Exchange in February 2015 [27] - In 2024, Tianfu Communication achieved a total revenue of 3.252 billion, a year-on-year increase of 67.74%, with a five-year CAGR of 38.91% [30] Group 8: Shenghong Technology - Shenghong Technology is among the top 100 PCB manufacturers globally, having launched several AI server-related products, with some already in mass supply to NVIDIA [31] - The company was listed on the Shenzhen Stock Exchange in June 2015 [33] - In 2024, Shenghong Technology's total revenue was 10.731 billion, a year-on-year increase of 35.31%, with a five-year CAGR of 17.66% [35]

Investment Rating - The report maintains an investment rating of "Outperform" with a target price of A [5] Core Insights - The AI infrastructure continues to drive significant growth in the PCB industry, particularly in high-end applications such as GPU acceleration cards and modules, which are essential for meeting the demands of speed, frequency, heat dissipation, and reliability [1][28] - The semiconductor industry is experiencing robust growth driven by AI demand and accelerated domestic substitution, with a focus on opportunities in the FAB and supporting supply chains [2][35] - Domestic computing chips are making significant breakthroughs across multiple core areas, supported by increased investment from internet giants and government initiatives [3][57] - The consumer electronics sector is witnessing a recovery driven by AI technology innovations and supportive policies, with structural opportunities emerging in high-end products [4][9] Summary by Sections 1. PCB Industry - The global AI infrastructure's sustained high demand is benefiting the PCB industry, particularly in high-end products like GPU acceleration cards, which require advanced HDI boards for improved signal integrity and reduced electromagnetic interference [1][21] - The market for HDI boards is projected to grow significantly, with an annual compound growth rate of 19.1% for AI-related HDI boards from 2024 to 2029, outpacing the overall PCB industry growth [28] - The trend towards domestic supply chain integration is evident as local manufacturers increasingly enter international supply chains, driven by the need for high-end materials and equipment [29] 2. Semiconductor Industry - The global semiconductor market saw a sales increase of 19.8% year-on-year in the first half of 2025, with strong performance in the digital chip design sector, which grew by 24.7% [39][46] - The semiconductor equipment market is experiencing a mixed performance, with a year-on-year growth of 21.3% despite a quarterly decline, indicating a recovery phase following a peak in domestic wafer plant construction [41][46] - The report highlights the importance of domestic substitution in the semiconductor sector, particularly in response to U.S. tariffs and technology restrictions, which are accelerating the shift towards local manufacturing capabilities [50][51] 3. Domestic Computing Chips - Domestic cloud service providers are significantly increasing capital expenditures for AI infrastructure, with Alibaba planning to invest 380 billion yuan over three years, indicating a strong market for domestic chips [57][58] - Companies like SMIC and Huahong are making progress in expanding their production capacities, which will enhance their competitiveness in the semiconductor market [61] 4. Consumer Electronics - The consumer electronics sector is recovering, with a notable increase in revenue and profit driven by AI innovations and government policies, particularly in high-end segments like smartphones and smart glasses [4][9] - The report anticipates continued growth in the consumer electronics market, particularly with the upcoming product launches from major brands [9][10]

Core Viewpoint - The company, Zhongjing Electronics, does not directly engage in chip business, focusing instead on PCB production, with a small portion of its PCB products applied in GPU accelerator cards [1] Company Summary - Zhongjing Electronics stated on August 28 that its main products are PCBs, and it has a limited order volume and market share related to GPU accelerator cards [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the overseas computing power chain, specifically in the PCB (Printed Circuit Board) sector, driven by the increasing demand for AI capabilities, particularly from companies like OpenAI and Xia [1][2]. Core Insights and Arguments - **AI Demand Growth**: The evolution of AI narratives is driving higher computing power demand, with significant needs from OpenAI and Xia. The increase in TOKEN numbers validates the strong demand for overseas inference computing power, indicating an acceleration in the iteration path of AI large models [1][2]. - **Investment Opportunities in PCB Sector**: From the second half of 2025 to 2026, investment opportunities in the PCB sector are concentrated around NVIDIA and the ASIC (Application-Specific Integrated Circuit) supply chain. The PCB market demand is expected to exceed 15 billion by 2026, with major suppliers including Shengyi Technology, Jinxiong, and Huitian [3][8]. - **Hardware Upgrades**: Major companies like Amazon, Google, and Meta are expected to undergo significant hardware upgrades. For instance, Amazon's T3 servers will enhance GPU acceleration cards and PCB value by over 20% due to material upgrades [5][11]. - **Google's Chip Production**: Google is projected to ship 2 million TPU chips in 2025, with an increase to 3 million in 2026. However, its PCB demand is relatively lower due to the use of lower-grade materials [9][11]. - **Meta's XPU Chips**: Meta anticipates producing millions of XPU chips, each requiring high-spec PCBs, with potential suppliers including Huitian and Tianpin [12]. Additional Important Insights - **Valuation of Core PCB Companies**: Current valuations of core PCB companies are reasonable, with potential for further price increases. Companies like Shengyi Technology are recommended for investment due to their strong position in the ASIC supply chain [3][13]. - **Market Dynamics**: The PCB market is expected to see significant growth, with a projected increase in demand due to the expansion of major clients like Amazon and Google. Shengyi Technology is expected to add substantial production capacity to meet this demand [14][16]. - **Profitability Forecasts**: Shengyi Technology's earnings are projected to reach 1 billion in 2025 and 1.7 to 1.8 billion in 2026, with a potential market value of 40 billion [14]. Huitian is also expected to achieve significant profit growth, with forecasts of 3.7 billion in 2025 and 4.6 billion in 2026 [15]. - **Emerging Trends in AI**: The resurgence of pre-trained models is anticipated to increase computing power demand, with a focus on building large clusters for AI training [22][26]. Conclusion - The overseas computing power chain, particularly in the PCB sector, is poised for significant growth driven by AI demands. Key players like Amazon, Google, and Meta are expected to lead hardware upgrades, creating substantial investment opportunities in the PCB supply chain. The market dynamics suggest a favorable outlook for companies involved in this sector, with reasonable valuations and strong growth potential.