Summary of Shennan Circuit Conference Call Company Overview - **Company**: Shennan Circuit (002916.SZ) - **Industry**: Printed Circuit Board (PCB) and Copper Clad Laminate (CCL) Key Points Incentive Plan - Shennan announced a Phase II Restricted Stock Incentive Plan, granting **15.16 million shares** (2.27% of total issued capital) to **667 key personnel** at a price of **RMB 114.72/share** [1][2] - The plan aims to align key talent with shareholder interests during the AI upcycle, with stringent unlocking criteria including: - Recurring net profit CAGR of **≥13%** compared to 2024 - Continuous ROE improvement to **>12.8%** by 2028 - Performance in the **75th percentile** of industry peers [1][2] Financial Performance Expectations - The incentive scheme is designed to ensure double-digit year-on-year growth during **2026-2028E** and to outperform major peers [2] - The exercise price reflects a **40% discount** from the closing price of **RMB 191.2/share** prior to the announcement [2] Market Position and Valuation - Shennan's target price is set at **RMB 281**, indicating an expected share price return of **46.1%** and a total return of **47.1%** [3] - The company is positioned as a key player in the domestic AI server and auto segments, contributing over **55%** of total PCB sales [7] - The target PE of **48x** forward reflects a **40-50% premium** to the sector average, justified by Shennan's leading position and technology leadership [7] Risks - Potential downside risks include: - Slower-than-expected growth in the China AI server market - Weaker demand for auto and ADAS systems - Lower-than-expected profits from the new plant in Wuxi - Higher laminate cost inflation [8] Conclusion - The recent stock price retreat of over **20%** from the year-to-date peak in early October has led to a reiteration of the **Buy** rating [1]

Core Insights - India's electronics manufacturing sector is experiencing aggressive expansion through new product categories and acquisitions, despite facing thin margins [1][2][19] - Companies are focusing on increasing margins by venturing into industrial electronics, which offers higher value-added margins compared to high-volume electronics assembly [2] Company Summaries Dixon Technologies - Dixon reported ₹14,855 crore in revenue for the September quarter and achieved a 6.2% operating margin, up from 2.8% a year ago [4] - The company invested ₹803 crore in two acquisitions and a joint venture, including ₹553 crore for a joint venture with Kunshan Q Tech Microelectronics and ₹250 crore for a 74% stake in a joint venture with Chongqing Yuhai [5][6] - Dixon plans to invest ₹3,000 crore in display and camera modules, having applied for incentives under the electronics components manufacturing scheme [7][8] - The company anticipates increasing smartphone camera module production from 40 million units to 190-200 million units annually, with revenues projected to rise to ₹6,000-7,000 crore [9] Syrma SGS - Syrma SGS spent ₹235 crore to acquire a 60% stake in Elcome Integrated Systems, which specializes in electronics systems for defense and maritime clients [10] - The company expects this acquisition to contribute ₹100 crore to its top line this fiscal year, with an operating margin of 7.8% during the July-September quarter, up from 6% a year ago [11] Kaynes Technology - Kaynes Technology raised ₹1,575 crore from institutional investors and plans to allocate ₹160 crore for acquisitions [12] - The company recorded a 16.7% operating margin for Q2FY26, an increase from 14.8% a year ago, as it focuses on backward integration into PCB manufacturing and semiconductor packaging [13] Amber Enterprises - Amber Enterprises generated ₹1,647 crore in revenue for the quarter ended September, with electronics manufacturing accounting for a quarter of this revenue [14] - The company spent ₹693 crore on two acquisitions, including a 40% stake in Unitronics for ₹431 crore and ₹262 crore in Power-One Micro Systems [15] - Amber's operating margin was 2.2% in Q2, down from 4.4% a year ago, indicating a need for margin improvement [15] Tata Electronics and Foxconn - Tata Electronics reported ₹66,602 crore in revenue for FY25, making it the largest player in the industry, and announced a ₹91,000 crore investment in semiconductor manufacturing [16][17] - Foxconn's India arm, Bharat FIH, is expanding into electronics components manufacturing with a ₹15,000 crore investment [17] Industry Outlook - The overall electronics production in India is projected to reach ₹11 trillion by the end of 2025 and scale up to ₹44 trillion by 2030 [20] - Companies are increasingly focusing on component manufacturing as a key driver for future growth, with joint ventures and acquisitions being essential strategies [19]

Core Points - Eltek Ltd. will release its financial results for Q3 2025 on November 18, 2025, before market opening [1] - A conference call will be held on the same day at 9:00 a.m. Eastern Time to discuss the results, featuring remarks from the CEO and CFO [1][2] Company Overview - Eltek is a global manufacturer and supplier of advanced solutions in printed circuit boards (PCBs), specializing in complex and high-quality PCBs for high-end markets [4] - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across multiple regions [4][5] - Founded in 1970, Eltek's headquarters, R&D, production, and marketing center are located in Israel, with operations in North America and various international markets [5]

Company Overview - TTM Technologies, Inc. (TTMI) is a global electronics manufacturer focusing on printed circuit boards (PCBs) and radio frequency (RF) components [1] - The company's products are widely utilized in defense, aerospace, automotive, computing, and other industries [1] - TTM provides design, simulation, and testing services, which have seen significant demand driven by advancements in artificial intelligence [1] Industry Insights - The demand for PCBs and RF components is increasing due to the growing integration of AI technologies across various sectors [1]

Company Overview - Eltek Ltd. is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is recognized as a leading company in Israel's PCB industry [3][4] - The company specializes in complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards for high-end markets [3] - Eltek is ITAR compliant and holds AS-9100 and NADCAP electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [3] Recent Developments - Eltek announced it received orders totaling $2.4 million from a leading Israeli defense company, with product deliveries scheduled mainly for 2026 and 2027 [1][2] - The order pertains to critical PCB components that have been previously supplied to the customer, highlighting the advanced technological capabilities required for these products [2] Historical Context - Eltek was founded in 1970 and has its headquarters, R&D, production, and marketing center located in Israel, with additional operations through a subsidiary in North America and agents in Europe, India, South Africa, and South America [4]

Core Insights - Eltek Ltd. reported a 20% increase in revenue for Q2 2025, reaching $12.5 million compared to $10.5 million in Q2 2024, driven by strong performance in defense and medical segments [2][5] - The gross margin expanded significantly to 24.1%, up from 15.6% in the same quarter last year, reflecting operational improvements and a favorable product mix [2][6] - Operating income surged by 259% to $1.5 million, more than tripling from $0.4 million in Q2 2024, indicating robust operational efficiency [2][6] Financial Performance - Revenues for the first six months of 2025 totaled $25.3 million, a 14% increase from $22.2 million in the same period of 2024 [2][10] - Gross profit for the first half of 2025 was $5.2 million, representing 21% of revenues, compared to $4.9 million (22% of revenues) in the first half of 2024 [10][11] - Net income for Q2 2025 was $0.4 million or $0.05 per diluted share, down from $0.8 million or $0.11 per diluted share in Q2 2024 [7][20] Operational Developments - The company is committed to expanding production capacity, with successful installation of new equipment and ongoing construction of new coating lines [3][4] - Staffing has increased by approximately 10% since January to meet growing demand while maintaining lead times [4] - A non-cash financial expense of $1.0 million was incurred due to the appreciation of the Israeli shekel, prompting a proactive update to the pricing model to protect margins [5][7] Non-GAAP Financial Metrics - EBITDA for Q2 2025 was $2.0 million, or 15.6% of revenues, compared to $0.8 million (7.6% of revenues) in Q2 2024 [9][22] - For the first six months of 2025, non-GAAP EBITDA was $3.1 million (12% of revenues), slightly up from $2.9 million (13% of revenues) in the same period of 2024 [12][22]

Core Viewpoint - Eltek Ltd. is set to release its financial results for Q2 2025 on August 14, 2025, before market opening, highlighting its ongoing operations in the printed circuit board industry [1] Company Overview - Eltek is a global manufacturer and supplier of advanced solutions in printed circuit boards (PCBs), specializing in complex, high-quality PCBs, HDI, multilayered, and flex-rigid boards for high-end markets [3] - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [3] - Founded in 1970, Eltek's headquarters, R&D, production, and marketing center are located in Israel, with operations in North America and through agents and distributors in Europe, India, South Africa, and South America [4] Financial Results Announcement - The financial results will be discussed in a conference call on August 14, 2025, at 9:00 a.m. Eastern Time, featuring remarks from the CEO and CFO [2] - A replay of the conference call will be available on Eltek's corporate website approximately 24 hours after the call and archived for 30 days [2]

Financial Data and Key Metrics Changes - TTM Technologies achieved revenue of $730.6 million in Q2 2025, a 21% increase from $605.1 million in Q2 2024, driven by strong demand in various end markets [25][6][7] - Non-GAAP EPS reached a record $0.58, compared to $0.39 in the same quarter last year [31][7] - Non-GAAP operating margins improved to 11.1%, up 210 basis points year-on-year [29][7] - Cash flow from operations was 13.4% of revenues, with net leverage at 1.2 times [32][7] Business Line Data and Key Metrics Changes - Aerospace and defense represented 45% of total revenues, with a program backlog of approximately $1.46 billion, showing strong demand and growth [17][7] - Data center computing accounted for 21% of total sales, with a 20% year-on-year growth, driven by generative AI applications [18][7] - Medical industrial instrumentation contributed 15% of total sales, with a 28% year-on-year growth [19][7] - Automotive sales declined slightly to 11% of total sales due to inventory adjustments and soft demand [19][7] - Networking revenue grew significantly by 52% year-on-year, accounting for 8% of total sales [20][7] Market Data and Key Metrics Changes - The defense market is expected to benefit from increased defense budgets, with a significant $150 billion allocated in the fiscal year 2025 reconciliation bill [12][7] - NATO leaders have agreed to increase defense spending to 5% of GDP, providing a positive outlook for defense-related revenues [13][7] - The company is seeing growing interest from hyperscalers and EMS companies investing in new facilities in the U.S., particularly for generative AI [10][7] Company Strategy and Development Direction - TTM is focusing on diversifying its manufacturing footprint and end markets, having divested lower-margin facilities in China and invested in new capabilities in the U.S. and Malaysia [8][7] - The company plans to enhance its production capabilities in Eau Claire, Wisconsin, to support high-volume U.S. production of advanced technology PCBs [11][7] - TTM is also expanding its facility in Penang, Malaysia, to meet customer demand and diversify supply chains beyond China [15][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential tariff impacts due to its diversified end markets and manufacturing locations [9][7] - The company remains optimistic about future growth in the aerospace and defense sector, supported by a solid backlog and ongoing program bookings [17][7] - Management acknowledged challenges in ramping up the Penang facility but remains focused on achieving breakeven revenue levels [15][7] Other Important Information - The company announced a change in its reportable segments to better reflect its operations, now categorized into aerospace and defense, commercial, and RF and specialty components [26][7] - TTM's top five customers contributed 41% of total sales, indicating a stable customer base [21][7] - The company is actively pursuing M&A opportunities in the microelectronics and RF microwave spaces, anticipating more properties to come to market in the next year [76][7] Q&A Session Summary Question: Timeline for new capacity in Wisconsin and customer requests - Management indicated that the Eau Claire facility is prepared for customer engagement and discussions are ongoing, particularly in the data center space [39][7] Question: Concerns about slippage in Penang's breakeven timeline - Management stated that while there are challenges, they do not believe it impacts their competitive position and are focused on optimizing yields [46][7] Question: Update on capacity expansion in China - Management confirmed that they are on track to add 20% additional capacity in their Dongguan facility and are qualifying programs in Guangzhou [55][7] Question: Customer diversification in the data center segment - Management reported good diversification in the data center space, with ongoing efforts to balance capacity for core customers and new entrants [58][7] Question: Cost competitiveness of the Eau Claire facility - Management acknowledged that initial costs would be higher than in China, but there is customer appetite for U.S.-based capacity [82][7] Question: Margin drag in Penang - Management noted that the margin drag in Penang has increased to about 210 basis points year-over-year [84][7]

Core Viewpoint - Eltek Ltd. reported a revenue increase of approximately 8% year-over-year for Q1 2025, driven by strong demand for its printed circuit board products, despite facing challenges with gross margins due to rising labor costs and new production equipment integration [2][4]. Financial Performance - Revenues for Q1 2025 were $12.8 million, up from $11.8 million in Q1 2024, and 18.5% higher than Q4 2024 [2][5]. - Net income for Q1 2025 was $1.0 million, or $0.15 per fully diluted share, compared to $1.7 million, or $0.27 per fully diluted share in Q1 2024 [6][9]. - Gross profit for Q1 2025 was $2.2 million, representing a gross margin of 17%, down from $3.3 million and 28% in Q1 2024 [5][6]. - Operating profit for Q1 2025 was $0.7 million, compared to $1.7 million in Q1 2024 [5][9]. - EBITDA for Q1 2025 was $1.2 million, or 9% of revenues, down from $2.1 million, or 18% of revenues in Q1 2024 [7]. Cash Position - As of March 31, 2025, cash and short-term bank deposits totaled $15.7 million, with no outstanding debt [6]. Future Outlook - The company plans to complete its accelerated investment program by mid-2026 and is preparing for the integration of new production lines [3]. - Eltek anticipates that its efforts to expand commercial sales will yield positive results throughout 2025 and beyond [4]. Company Overview - Eltek Ltd. specializes in the manufacture of technologically advanced printed circuit boards (PCBs) and serves high-end markets, including defense, aerospace, and medical industries [11]. - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, indicating its commitment to quality and regulatory standards [11].

Core Viewpoint - Eltek Ltd. will release its financial results for Q1 2025 on May 20, 2025, before market opening, and will hold a conference call to discuss these results [1][2]. Company Overview - Eltek is a global manufacturer and supplier of advanced solutions in printed circuit boards (PCBs), specializing in complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards for high-end markets [3]. - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [3]. Financial Communication - The financial results will be disseminated via news wires and posted on Eltek's corporate website [1]. - A conference call will take place on May 20, 2025, at 8:30 a.m. Eastern Time, featuring remarks from the CEO and CFO [2]. - A replay of the conference call will be available on the corporate website approximately 24 hours after the call and archived for 30 days [2].