SCC(SZ:002916)2025-07-21 14:26Summary of PCB Industry and Company Insights Industry Overview - The PCB sector is optimistic, with domestic companies like Huadian, Pengding, Shenghong, and Shennan having valuations lower than US counterparts like TTM, despite surpassing them in manufacturing processes and profitability, indicating a golden era for high-end PCBs with significant investment potential [1][4] - The core growth logic of the PCB industry is based on tight supply and demand, with traditional high-end HDI facing price increases, and leading manufacturers acknowledging the need for price adjustments [5] - The overall trend in the PCB industry is positive, characterized by clear industry trends, tight supply, and no disruptive new technologies, making it a favorable investment direction [16] Key Companies and Their Insights Huadian (沪电) - Positioned as a leading domestic PCB manufacturer, with significant capacity but unable to meet the projected market demand of 80 billion by 2026, leading to a shift of orders to companies with new or sufficient capacity [5][18] Pengding (鹏鼎) - Actively expanding capacity through projects in Thailand and Huai'an, with a strong performance in Q2, indicating long-term investment value [15][19] - Entering the overseas computing PCB market, leveraging liquid cooling technology, and maintaining strong business relationships with international companies [15][19] Shenghong (盛宏) - Recognized as the strongest supplier for Nvidia, with PCB demand expected to grow from 14 billion RMB in 2025 to 20 billion RMB in 2026, indicating a significant market opportunity [6] Shennan (深南电路) - Notable for high AI revenue purity, with over 60% of income from AI-related products, and strong growth expectations, potentially doubling revenue by 2026 [8][18] - Achieved significant progress in NV business, with potential revenue increases from partnerships with major tech companies like Google and AMD [12][18] - Currently viewed as having the largest expected discrepancy in the PCB sector, making it a key focus for investment [12][18] Market Dynamics - Nvidia's PCB demand is a core growth area, with significant increases expected in the coming years, driven by new architectures and product innovations [6] - The ASIC sector is projected to double its market size to 32 billion by 2026, with major contributions from companies like Google and Meta [7] - The switch market is also expanding, with expected revenues exceeding 1 billion RMB, contributing to overall growth in the PCB sector [10] Investment Considerations - Companies should be evaluated based on their existing capacity, expansion efforts, and progress in verification to identify suitable investment opportunities [17] - The PCB sector is expected to continue its upward trend, particularly with the growth of overseas computing and the release of large models, which will further drive market growth [20] Conclusion - The PCB industry presents a robust investment landscape, with key players like Huadian, Pengding, Shenghong, and Shennan poised for growth amid increasing demand and technological advancements. The focus on AI and ASIC applications further enhances the sector's attractiveness for investors.