Core Viewpoint - Benchuan Intelligent's application for public issuance of convertible bonds has been successfully approved, aiming to raise a total of 469 million yuan for various projects and working capital [1]. Group 1: Fundraising and Projects - The company plans to issue convertible bonds to raise up to 469 million yuan, with net proceeds intended for investment in specific projects and working capital [1]. - The total investment for the Zhuhai Shuo Hong project is approximately 356.19 million yuan, with 334.54 million yuan expected to be funded by the raised capital [3]. - The Thailand PCB production base project has a total investment of about 237.58 million yuan, with 105.46 million yuan allocated from the raised funds [3]. Group 2: Project Details - The Zhuhai Shuo Hong project will involve the construction of a new factory with a planned area of about 30,050 square meters, targeting an annual production capacity of 300,000 square meters of various PCB products [3][4]. - The Thailand PCB production base, operated by Aiwel Circuit (Thailand) Co., Ltd., aims for an annual capacity of 250,000 square meters, focusing on double-sided and multi-layer PCBs [4]. - The implementation of these projects is expected to enhance delivery capabilities, reduce international trade barriers, and improve production efficiency through the acquisition of automated equipment [4].

Investment Rating - The report assigns a "Buy" rating for the company for the first time [4][5]. Core Views - The company is expected to benefit from the growing demand in the PCB industry, particularly driven by AI infrastructure and automotive electronics [4][37]. - The partnership with MEIKO is anticipated to enhance the company's capabilities in product certification and quality management, particularly for its Thailand factory [4][25][26]. - The PCB industry is entering a new growth cycle, with significant expansion expected in high-end products like HDI boards and multilayer boards [4][46]. Company Overview - The company, founded in May 2008, specializes in the R&D, production, and sales of PCBs, with a focus on single-sided, double-sided, and multilayer boards [12][60]. - As of the third quarter of 2025, the actual controller of the company is a couple, holding 68.38% of the voting rights [4][23]. Financial Performance - The company’s projected revenues for 2025, 2026, and 2027 are expected to be 55.64 billion, 67.08 billion, and 80.03 billion yuan respectively, with growth rates of 21.85%, 20.56%, and 19.30% [4][6]. - The net profit attributable to the parent company is forecasted to be 3.74 billion, 5.19 billion, and 7.23 billion yuan for the same years, with growth rates of 5.90%, 38.74%, and 39.36% [4][6]. Industry Analysis - The global PCB market is projected to grow from 73.565 billion USD in 2024 to 94.661 billion USD by 2029, with a CAGR of 5.2% [4][37]. - China has become the largest PCB producer globally, with a market share of 56.02% in 2024, expected to remain above 50% through 2029 [4][39]. - The demand for HDI boards is expected to see significant growth, driven by AI servers and high-speed networks [4][46]. Business Strategy - The company is actively expanding its production capacity and exploring new applications in AI servers and automotive electronics [4][60]. - The company has announced plans to raise funds through convertible bonds to invest in high-end PCB projects, with a total investment of 1.82 billion yuan [4][6].

Core Viewpoint - The company plans to issue shares to specific investors through a simplified procedure in 2025, which may dilute immediate returns for existing shareholders, and has proposed measures to mitigate this impact [1][5]. Financial Impact Analysis - The company estimates that the total number of shares after the issuance will be 44,639,350, increasing from 41,469,444 shares, which represents a 30% increase in total shares [3]. - The estimated fundraising amount is 300 million yuan, which will be used to enhance the company's financial strength and profitability [3]. - The company anticipates that the net profit attributable to shareholders for 2025 could remain stable compared to 2024, or potentially increase or decrease by 20% depending on various scenarios [3][4]. Issuance Necessity and Reasonableness - The financing aligns with industry trends and the company's future development plans, enhancing its capital strength and profitability, which benefits all shareholders [5]. Relationship of Fundraising Projects to Existing Business - The company specializes in high-density printed circuit boards (PCBs) and plans to upgrade its production line for high-end server PCBs, which aligns with its current business and market demands [6][8]. Preparedness for Fundraising Projects - The company has established a skilled workforce and technical capabilities necessary for the successful implementation of the fundraising projects, ensuring readiness in personnel, technology, and market aspects [7][8]. Measures to Mitigate Dilution of Immediate Returns - The company will optimize business processes and enhance internal controls to improve operational efficiency and profitability, thereby reducing the risk of diluted immediate returns for shareholders [11]. - A dedicated fund management system will be implemented to ensure the effective use of raised funds, protecting the interests of shareholders, especially minority shareholders [9][10]. Commitments from Major Stakeholders - The controlling shareholders and management have committed to uphold the measures to mitigate the dilution of immediate returns, ensuring that company interests are not compromised [12].