Leading Company's High Performance Growth Resonates with Rising Material Costs, Multiple PCB Concept Stocks Attract Capital Inflow

The strong prosperity of the PCB industry is fully validated in the annual reports of leading companies. Some believe that driven by the continuous surge in AI computing power demand, the industry may enter a new stage of simultaneous growth in both volume and price.

Leading Companies’ Performance Significantly Realized

On the evening of March 12, Shenghong Technology and Shen Nan Circuit both released their 2025 “performance reports,” with both companies achieving simultaneous high growth in revenue and profit. The explosive demand for high-end PCBs has become the core growth engine.

Specifically, Shenghong Technology achieved revenue of 19.292 billion yuan in 2025, a year-on-year increase of 79.77%; net profit attributable to shareholders was 4.312 billion yuan, up 273.52%. The company plans to distribute 20 yuan (including tax) per 10 shares. During the reporting period, in key areas such as AI computing power, data centers, and high-performance computing, the company’s multiple high-end products have achieved large-scale mass production, driving product structure upgrades toward higher value and more complex technology.

At the same time, Shenghong Technology announced its investment plan for 2026, with a total investment not exceeding 20 billion yuan, focusing on new factory construction, engineering projects, equipment procurement, and automation line upgrades, laying a solid foundation for future business development.

Another industry giant, Shen Nan Circuit, reported that in 2025, the company achieved revenue of 23.647 billion yuan, a year-on-year increase of 32.05%; net profit attributable to shareholders was 3.276 billion yuan, up 74.47%. The company plans to distribute 24 yuan (including tax) per 10 shares.

During the reporting period, the company’s PCB business benefited from the development of AI computing power and automotive electronics markets, with significant growth in both revenue and profit. The packaging substrate business also saw double growth in revenue and profit, with rapid technological breakthroughs and a notable increase in orders.

Overseas Material Giants Continue Price Hikes

The supply-side price hike wave continues, further reinforcing the industry’s logic of simultaneous volume and price growth. Media reports indicate that Japanese semiconductor material giant Resonac (Risen Noko) has raised prices for CCL (copper-clad laminate) and adhesive films since March 1, with increases of up to 30%. Major electronic material manufacturers like Mitsubishi Gas Chemical have also followed suit, raising prices for related materials such as copper-clad boards and semi-cured sheets, which are core upstream raw materials for PCBs.

As the most critical upstream raw material for PCBs, CCL accounts for over 30% of costs. The significant price hikes by Japanese material giants will directly transmit to PCB manufacturing, pushing overall industry prices upward. Industry insiders generally expect this price increase to gradually extend to high-end segments such as MLCC, HDI boards, IC substrates, and high-frequency high-speed PCBs, driving the entire industry chain’s price system upward and further expanding profit margins.

AI Drives Long-term Industry Growth

Many institutions believe that the acceleration of computing power promotes technological upgrades in AI PCB, combined with domestic substitution and raw material price increases, enabling PCB companies to accelerate profit release.

CITIC Securities research reports that benefiting from AI, the global PCB industry is entering a new upward cycle. Driven by AI infrastructure, smart terminals, and automotive electrification, demand for high-end PCBs is rapidly growing. With process upgrades, the value of PCBs will steadily increase. Overseas cloud vendors’ self-developed chips demand higher PCB quality, offering greater value elasticity.

Open Source Securities believes that the 30% price increase by Japan’s Resonac will transmit to high-end manufacturing links. Nvidia’s LPU inference chips are expected to become a major catalyst for the industry, promoting process upgrades and value revaluation of PCBs, opening new growth space.

“Rapid penetration of AI servers is driving explosive demand for high-end PCBs. Coupled with raw material price increases, the industry’s profit recovery trend is clear,” said Huatai Securities. High-end PCB manufacturers are experiencing full order books and high capacity utilization, further strengthening performance growth certainty in 2026.

Multiple Concept Stocks Attract Financing

According to Eastmoney’s concept sector data, over a hundred A-share stocks are involved in the PCB concept. Shenghong Technology, Dongshan Precision, Shen Nan Circuit, Shengyi Technology, and Huatian Electronics are among the top in market value, showing a prominent leading effect.

Since the beginning of the year, the PCB concept sector has been actively traded, with nearly 80% of stocks seeing rising prices. Minbao Optoelectronics surged 1.5 times, Kega Precision, Kexiang Co., and Tungsten High-tech have doubled their stock prices, and 13 stocks including Honghe Technology and Mingyang Circuit have increased by 50% to 100%.

In terms of performance, as of March 12, 35 PCB concept stocks disclosed their 2025 operating data (including annual reports and performance quick reports), with nearly 90% showing profitability, and over 70% achieving year-on-year profit growth, confirming the industry’s high prosperity.

Among them, Nanya New Materials, Shengyi Electronics, and Aike Optoelectronics all saw net profit growth of over 300%. Shenghong Technology ranked fourth with a 273.52% increase. Jiuri New Materials, Geyuan Technology, and Painen Technology all doubled their performance. In terms of scale, Shenghong Technology, Shulian Co., Pengding Holdings, Shengyi Technology, and Shen Nan Circuit lead distinctly, with the leading profit advantages stable. Shengyi Electronics also achieved a net profit of about 1.5 billion yuan, ranking sixth.

From a capital perspective, Eastmoney’s Choice data shows that since March, 10 PCB concept stocks received net financing inflows exceeding 100 million yuan. Dongshan Precision saw leveraged funds significantly increase by 1.06 billion yuan, Shengyi Technology’s net financing reached 456 million yuan, and stocks like Shulian Co., Huadong Laser also attracted over 300 million yuan in financing.

(Source: Eastmoney Research Center)