中富电路20251103

Summary of Zhongfu Circuit Conference Call Company Overview - Company: Zhongfu Circuit - Industry: PCB (Printed Circuit Board) manufacturing, with a focus on AI-related power supply solutions Key Points and Arguments Industry Position and Strategy - Zhongfu Circuit is a leading player in the AI sector, with its three-phase power supply covering North America and some domestic clients. The HVDC (High Voltage Direct Current) first-phase power supply is expected to enter mass production next year, benefiting from the growing demand for AI server power supplies [2][5][6] - The company's strategic focus has shifted towards North American AI business, as AI clients offer higher profit margins compared to non-AI products. The proportion of AI orders is expected to continue increasing [2][4] - The company has been developing three-phase power supplies since 2018-2019 and is one of the earliest suppliers in this field [5] Financial Performance - In Q3 2025, Zhongfu Circuit experienced revenue and gross margin growth primarily driven by increased PCB orders in the AI sector. Domestic and overseas orders have significantly increased, although North American AI clients have not fully ramped up their orders yet [3] - The gross margin improvement is attributed to domestic factories reaching full production capacity, which reduces overhead costs [3] Product Development and Market Trends - The value of products is positively correlated with power, but the growth is non-linear. For instance, the value of a 3,000-4,000 watt single-chip project is expected to increase by 30%-50% compared to current levels [2][8] - The trend towards larger modules is evident, as they provide higher value despite being more complex to produce [9] - The company is also focusing on embedded and narrow board technologies, but the immediate priority is to execute existing projects effectively [12] Supply Chain and Production Challenges - The Thai factory is expected to improve its operational status in Q4 due to overseas clients shifting orders, although achieving profitability in the short term remains challenging [32][33] - The pricing of orders in Thailand is 10-20% higher than domestic prices, but high management and manufacturing costs may offset these advantages [35] Competitive Landscape - Zhongfu Circuit differentiates itself by covering both first-phase and three-phase product lines, unlike competitors like Jiangxi Weiergao, which primarily focus on first-phase products [14] - The company has established partnerships with several key clients, which positions it well for future certification requirements as the AI market matures [7] Future Outlook - The company aims to become a leader in the AI product sector, with plans to expand its market share in onboard power supplies and HVDC applications [26] - The overall gross margin is currently around 15%, significantly influenced by the proportion of domestic clients. Increasing the share of high-margin AI products is crucial for enhancing overall profitability [27] Miscellaneous Insights - The company is cautiously exploring the automotive power chip sector while prioritizing AI embedded projects to ensure effective resource allocation [28] - There is a general expectation of limited market changes in 2026, despite some opportunities [29] - Domestic AI clients are gradually increasing their power supply needs, although they still rely heavily on North American supply chains [30] Pricing and Cost Management - The price of traditional first-phase and AC to DC conversion boards ranges from 1,500 to 2,000 RMB per square meter, while HVDC products range from 7,000 to 20,000 RMB, and three-phase power supplies start at around 22,000 RMB [24] - The impact of rising raw material costs, such as copper-clad laminates, on profit margins is minimal, as the company is managing costs through price adjustments and product structure optimization [37][38]