Analysis and Comparison of the PCB Industry and Five Leading Companies

1. Basic Situation of the PCB Industry

PCB (Printed Circuit Board) refers to circuit boards designed with copper circuit patterns on copper-clad laminates, primarily responsible for the circuit connections of various electronic components, known as the “Mother of Electronic Products“. It is widely used in communication electronics, consumer electronics, computers, automotive electronics, industrial control, medical devices, defense, and aerospace fields.

PCBs are not only a fundamental industry of modern information technology but also the industry with the largest output value in the global electronic components sub-sector. Based on product types, PCBs can be classified into single/double-sided boards, multilayer boards, HDI, flexible boards, and IC substrates, among others, according to substrate material, product performance, and application fields.

Currently, companies in the industry typically adopt a “materials-manufacturing-application” vertical integration model, driven by technology, and mainly exhibit the following characteristics:

High-end Transformation: The intense competition and thin profits in traditional mid-to-low-end PCBs force companies to shift towards high-end fields such as multilayer boards, HDI (High-Density Interconnect), and packaging substrates (e.g., FC-BGA) to meet the high-frequency, high-speed, and large bandwidth demands of AI servers, new energy vehicles, and 5G base stations.
Concentration of Capacity Expansion: Leading companies are intensively expanding high-end production capacity (e.g., Huadian Technology’s 4.3 billion yuan AI chip supporting project, Dongshan Precision’s 1 billion USD high-speed server board project), with accelerated layouts in Southeast Asia to reduce costs and be closer to customers.
Increased Technical Barriers: AI server PCBs have layer counts ranging from 28 to 46, with a value 5-7 times that of traditional servers; materials are upgraded to Megtron8 high-frequency copper-clad laminates, with precise drilling/lamination process requirements.

2. Basic Situation of Five Leading PCB Companies

Currently, several PCB companies are listed on the A-share market, among which Dongshan Precision, Huadian Technology, Shennan Circuit, Pengding Holdings, and Shengyi Technology are five larger-scale companies:

(1) Huadian Technology (002463)

Shareholder Background: Taiwanese background (Nanzi Electronics as the founding shareholder), with production capacity distributed in Kunshan, Huangshi, and Thailand.
Latest Financial Data (August 2025):

Market Value: Approximately 69 billion yuan (estimated based on the latest EPS and PE);
Profit: 2024 revenue of 13.342 billion yuan (+49.26%), net profit of 2.587 billion yuan (+71.05%); Q2 2025 net profit approximately 938 million yuan (significant increase year-on-year and quarter-on-quarter).
Valuation: 2025 forecast PE of 28 times, EPS of 1.96 yuan; 2026 PE of 20 times, EPS of 2.66 yuan.

(2) Shennan Circuit (002916)

Shareholder Background: State-owned enterprise (AVIC International Holdings), focusing on communication PCBs and packaging substrates, with bases in Wuxi/Guangzhou/Thailand.
Latest Data (May 2025):

Market Value: 55.124 billion yuan;
Profit: Q1 2025 revenue of 4.783 billion yuan (+20.75%), net profit of 491 million yuan (+29.47%), gross margin of 24.74%.
Valuation: Rolling PE of 27.71 times (below the industry average of 52.58 times).

(3) Dongshan Precision (002384)

Shareholder Background: Private enterprise (Yuan family holding), global leader in FPC, tied to the Apple supply chain, with a factory in Thailand set to start production in 2025.
Latest Developments:

Capacity Expansion: In August 2025, increased investment of 350 million USD to advance high-end PCB projects, focusing on AI servers.
Profit: Latest financial report not disclosed, but Apple orders account for 44.5% (2023 data), with new energy structural components as the second growth curve.

(4) Pengding Holdings (002938)

Shareholder Background: Taiwanese capital (Zhen Ding Technology holding), with a global share of 19% in consumer electronics FPC, supplying both Apple and Huawei.
Latest Developments:

Capital Expenditure: Planning 5 billion yuan in 2025, directed towards high-end HDI/SLP (substrate-like boards), adapting to the miniaturization trend of AI terminals.
Business: Automotive boards up 95% year-on-year (2024), but the base is relatively low.

(5) Shengyi Technology (600183)

Shareholder Background: Mixed ownership (with participation from the Guangdong Provincial State-owned Assets Supervision and Administration Commission), a global leader in copper-clad laminates, extending downstream to PCBs.
Business Highlights:

AI server PCBs account for 49% (2024), breaking through 800G switch technology;
Layout in satellite communication and high-reliability PCBs for automotive intelligence.

3. Comparison of Main Products, Growth Potential, etc. of the Five Companies

Company	Main Products	Technical Advantages	Growth Potential Areas	Main Operational Risks
Dongshan Precision	FPC soft boards (mainly consumer electronics), new energy structural components	Global leader in FPC, tied to Apple/AI server customers	MR devices, new energy vehicles, Thailand factory	High customer dependency (44.5% from Apple), exchange rate fluctuations, new business ramp-up losses
Huadian Technology	High-end communication boards (AI servers/switches), automotive boards	Leading high-speed PCB technology, high gross margin for AI products	AI computing power devices, high-speed network devices	Price competition in automotive boards, raw material fluctuations, overseas factory loss pressure
Shennan Circuit	Communication PCBs, packaging substrates (FC-BGA)	Breakthrough in domestic high-end substrate localization, positioning with computing power customers	Domestic computing power chip support, Thailand substrate factory	Substrate ramp-up losses, storage demand fluctuations, technology substitution risks
Pengding Holdings	High-end FPC (mobile phones/wearables), HDI/SLP boards	Second largest global FPC share (19%), supplying both Apple and Huawei	AI terminals (mobile phones/PCs/glasses), automotive electronics	Dependency on Apple supply chain, rising raw material (copper/gold) prices, overseas factory ramp-up costs
Shengyi Technology	High multilayer PCBs (servers/communication), automotive boards	High-precision HDI technology, high proportion of AI servers (49%)	800G switches, satellite communication, automotive intelligence	Cash flow pressure, intensified competition in mid-to-low-end capacity

Main Business and Technical Differences

Dongshan Precision:

FPC soft boards are core (accounting for nearly 50% of revenue), deeply tied to the Apple supply chain, supplying iPhones, MR devices, etc. (the value of a single MR soft board is about 300 yuan).
New energy vehicle structural components (battery trays, car bodies) become the second growth curve, supporting Tesla and domestic new forces.
Advantages: Leading global FPC production capacity, with the Thailand factory set to start production in 2025 to reduce costs.

Huadian Technology:

High-end communication boards dominate (2024 revenue of 10.1 billion yuan, +72%), covering AI servers and high-speed switches (90% increase quarter-on-quarter in the second half of the year).
Automotive board growth is slow (gross margin affected by raw material fluctuations).
Advantages: High technical barriers for AI server PCBs, compatible with NVIDIA and other chip solutions, gross margin exceeding 30%.

Shennan Circuit:

Communication PCBs (data centers/optical modules) and packaging substrates are equally important, with mass production breakthroughs in FC-BGA substrates, supporting domestic computing power chips.
Advantages: One of the few domestic companies mastering ABF substrate technology, with the Guangzhou factory set to ramp up production in 2025 to reduce losses.

Pengding Holdings:

Consumer electronics FPC is globally leading (foldable screens/AI phones), with automotive boards up 95% year-on-year in 2024 (low base).
Advantages: SLP (substrate-like board) technology adapts to the miniaturization trend of AI terminals, with expansion of high-end HDI in Huai’an’s three parks.

Shengyi Technology:

High multilayer PCBs focus on servers/communication (49% from AI servers), breaking through 800G switch technology.
Advantages: High-reliability products suitable for satellite communication and intelligent driving fields.

Comparison of Growth Potential

AI Computing Power Devices:

Huadian/Shennan benefit the most directly: Huadian’s AI server PCB demand is doubling, and Shennan’s substrates support domestic computing power chips (such as Ascend).
Shengyi Technology: AI server revenue accounts for nearly 50%, with significant elasticity.

Smart Wearables and AI Terminals:

Dongshan/Pengding lead: Dongshan supplies FPC for Apple’s MR devices, and Pengding is laying out FPC for AI glasses and SLP motherboards.
Technical Requirements: Lightweight FPC (Pengding), high-integration SLP (Shennan).

Embodied Robots:

Currently, there are few layouts, but Pengding/Shennan have high technical adaptability: Pengding’s micro FPC can be used for sensors, and Shennan’s high-frequency PCBs are suitable for machine vision.
Chip-level Support: Integrated storage and computing chips (such as the later Mo M50) require high-bandwidth PCBs, and Shennan’s substrates are expected to enter this market.

New Energy and Automotive Electronics:

Dongshan Precision: The value per vehicle can reach 15,000 yuan (Tesla structural components).
Huadian/Pengding: Huadian’s automotive boards account for 18%, and Pengding’s growth is fast but from a low base.

Operational Risk Analysis

Risk Type	Dongshan Precision	Huadian Technology	Shennan Circuit	Pengding Holdings	Shengyi Technology
Customer Concentration	Extremely high (44.5% from Apple)	Medium (Huawei/server manufacturers)	Medium (communication major customers)	High (Apple/Huawei)	Diversified
Cost Pressure	Exchange rate, ramp-up of Thailand factory	Rising copper prices, losses in automotive boards	Substrate depreciation, rising gold prices	Rising gold/copper prices, depreciation of Huai’an factory	Raw material fluctuations
Technology Iteration	FPC upgrade demand	High technical barriers for high-speed PCBs	Substrate yield challenges	SLP penetration rate below expectations	Intensified competition in HDI
Emerging Business Risks	Long profit cycle for new energy vehicles	Difficult integration of Shengwei Technology	Fluctuations in storage substrate demand	Slow return on investment in automotive electronics	Fluctuations in satellite communication orders

Future Key Industry Layouts

Smart Wearables:

Dongshan Precision: Core supplier for Apple’s MR, with increasing value per unit FPC.
Pengding Holdings: Kaohsiung park producing AI glasses FPC, adapting to lightweight trends.