In 2024,the AI large model drives an explosion in the server market, benefiting not only NVIDIA and Inspur, but also high-end circuit board companies that serve as the “neural hubs” for servers, are quietly entering a spotlight moment. Today, we will deeply explore Guanghe Technology (001389), which has a small market value but excellent fundamentals.
๐ 01 | What is the company: An AI star player in PCB
- ๐งฉ Main Business: Research and development, manufacturing of high-end printed circuit boards (high-speed, high-density, high-reliability PCBs) for servers
- ๐ Technical Advantages: Accumulatedover 210 patents, with product gross marginsmaintaining above 35%
- ๐ Core Customers: World-class server manufacturers such as DELL, Foxconn, Quanta, Inventec, Inspur, Lenovo, Huawei, etc.
- ๐ฏ Strategic Positioning: “Cloud-Management-End”, with a core focus on “Cloud”โspecificallythe core components of AI server motherboards
๐ In simple terms,Guanghe Technology is not NVIDIA, which “creates AI”, but rather the circuit vascular system that “drives AI flow”.
๐ผ 02 | Leading Capital Efficiency, Financial Reports Support Valuation
As of Q1 2025, Guanghe Technology has demonstrated impressive operational quality:
| Key Indicators | Value | Peer Comparison |
|---|---|---|
| Gross Margin | 35.19% | ๐ Shenghong Technology: 33.4% |
| Net Profit Margin | 21.52% | ๐ Huadian Technology: 18.9% |
| EPS (TTM) | 2.12 yuan (annualized) | ๐ Assumed value better than most benchmarks |
| 2024 Annual Revenue | 3.734 billion yuan | Year-on-year +39.43% |
| 2024 Net Profit | 676 million yuan | Year-on-year +63.04% |
๐ The five-year compound growth rates are as follows:
- Revenue compound growth (2020-2024) approximately: 25.6%+
- Net profit compound growth rate: over 30%
- Net profit cash content close to 90%-120%
โ๏ธ Strong profitability, rapid growth, and solid fundamentals make itthe growth benchmark in the PCB industry.
๐งฎ 03 | What is the valuation position?
๐ข Current Valuation:
- Stock price approximately: 56.1 yuan (as of 2025/6/20)
- Total market value: 23.8 billion yuan
- PE (TTM): 30.93 times
๐ How do we provide valuation judgments?
1๏ผRelative Valuation: Benchmarking Shenghong Technology, Huadian Technology
| Company | Market Value | PE (TTM) | Net Profit Margin | EPS |
|---|---|---|---|---|
| Guanghe Technology | 23.8 billion | 30.9x | 21.5% | approximately 2.12 yuan |
| Shenghong Technology | 98 billion | 52.5x | 21.3% | 2.36 yuan |
| Huadian Technology | 83.1 billion | 29.3x | 18.9% | 1.38 yuan |
โถ๏ธ Despite Guanghe Technology’s strong profitability,the valuation has not fully reflected future growth potential.
2๏ผValuation Model Method:
Based on the assumed EPS for 2025E-2027E, a reasonable PE is given:
| Year | EPS Forecast | PE Value | Reasonable Valuation |
|---|---|---|---|
| 2025E | 2.12 yuan | 30x | โ63.6 yuan |
| 2026E | 2.83 yuan | 30x | โ85 yuan or more |
| 2027E | 3.54 yuanโ | 28x | Expected to be90 yuan+ |
๐ Therefore, the current stock price of 56 yuan corresponds to a potential space of +13% ~ +51% or more.
โ 04 | Summary of Core Competitive Advantages
| Dimension | Advantage Description |
|---|---|
| ๐ Technical Barriers | Independently mastering high-layer/flexible/high-speed PCB processes, selected as a national manufacturing champion product |
| ๐ค Customer Advantages | Established deep cooperation with DELL, Inspur, Lenovo, etc., with high order stickiness |
| ๐ฑ Growth Logic | AI servers + high-end servers will drive long-term demand |
| ๐ Global Layout | Factory in Thailand about to start production, entering more international major customer procurement chains |
| ๐ฐ Financial Quality | Strong profitability sustainability, gross margin and ROE both above industry average |
โ ๏ธ 05 | Risk Points Worth Noting
- ๐ Exchange rate fluctuations & geopolitical issues
- โณ The payback period for the Yellowstone/Thailand projects requires time, with temporarily high capital expenditures
- ๐ฆ High customer concentration (DELTON contributes significantly)
๐ However, the company isachieving capacity diversification, customer group diversification, and product line high-endization, which is sufficient to mitigate the above risks.
๐ฃ Conclusion: The Golden Main Line in Circuit Boards, the Market is About to Reassess
The wave of AI computing power is accelerating its expansion from chips to downstream, and as a highly technology-sensitive PCB supplier in servers,Guanghe Technology is standing at the forefront of the explosion of high-end servers. With the resonance of high revenue growth, strong profitability realization, and gradual global expansion, it is gradually moving from “small and beautiful” to “medium and strong”.
Currently, the market value still hovers just above 20 billion.
What defines an era is not just AI algorithms, but also the foundational hardware vessels that connect AI systemsโGuanghe Technology is growing into that indispensable role.
Note: The financial data in this article is sourced from company disclosures, and the valuation and stock price are based on Xiaofang APP data as of 2025/6/23. Valuations will fluctuate with market changes.
Risk Warning: This article is for reference only and does not constitute investment advice. Investment carries risks; please proceed with caution.
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