VGT(SZ:300476)2025-12-22 02:31Summary of Conference Call Notes on Victory Giant (300476.SZ) Company Overview - Company Name: Victory Giant (300476.SZ) - Industry: PCB (Printed Circuit Board) manufacturing - Focus: Multi-layer PCB (MLPCB) and High Density Interconnector (HDI) - Global Presence: Operations in mainland China, Malaysia, Vietnam, and Thailand - End Markets: AI data centers, automotive, telecom, and smart terminals [3][4] Key Takeaways 1. Capacity Expansion for AI PCB - Victory Giant is expanding its high-end PCB capacity in response to rising demand from AI PCB clients, driven by the need for complex designs that support high-speed data transmission in data centers - The company plans to increase its capital expenditure (capex) by 380% year-over-year to Rmb3.7 billion for the first nine months of 2025 - Management is optimistic about the scale advantages of high-end capacity, including HDI with 6+N+6 layers and MLPCB with 14 layers [4][7] 2. Competitive Edges - The company is collaborating closely with key AI clients on R&D for next-generation products, leveraging its early involvement in product design - Victory Giant has accumulated advantages in HDI and MLPCB manufacturing, which require high precision and stringent technical capabilities - The management emphasizes the company's ability to achieve high production accuracy and timely delivery of high-end products [8][9] 3. Diversifying Client Base - Victory Giant is actively diversifying its client base, which includes exposure to GPU and AI ASIC solutions - This diversification strategy aims to mitigate risks associated with reliance on a single customer, thereby promoting more stable revenue growth [9] Industry Insights - The rising demand for AI PCBs is echoed by other companies in the industry, such as Shennan Circuits, which is also positioned to benefit from this trend - Shennan Circuits is expected to see earnings growth supported by an upgrade in its product mix towards more AI PCBs [2] Additional Considerations - The management's positive outlook on capacity expansion and client diversification indicates a proactive approach to market demands and technological advancements - The focus on R&D and collaboration with key clients suggests a commitment to innovation and maintaining competitive advantages in the PCB market [1][8]