Founder Technology (600601): The AI Computing Power Breakthrough and Valuation Game of a PCB Veteran
Article first published on: October 26, 2025
1. Company Fundamentals: From “Traditional PCB Manufacturer” to “AI Computing Material Supplier” Breakthrough
The business model of Founder Technology can be summarized as “Stable PCB Foundation, New Opportunities in AI Servers + Optical Modules“. In simple terms, its core product is Printed Circuit Boards (PCBs)— equivalent to the “neural skeleton” of electronic products. The densely packed circuit boards in your smartphone motherboard, computer graphics card, and data center servers may come from its workshop. The mid-2025 report shows that PCB business revenue accounts for as high as 98.35%, with high-speed PCBs for AI servers and optical module boards becoming new growth drivers, with 800G optical module boards already in mass production and 1.6T products completed for sampling.
Moat and Risk Points:
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Technical Barriers: Possesses mass production capabilities for high-layer (56 layers) and HDI boards, participates in setting industry standards, and the signal integrity technology for AI server PCBs reaches an advanced level in the industry.
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Customer Binding: Deep cooperation with equipment manufacturers such as Huawei and ZTE, with a factory in Thailand set to start production in 2025, targeting the Southeast Asian AI computing infrastructure market.
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Achilles’ Heel: The gross profit margin in Q3 2025 is only 23.06% (average in the industry), with rising copper foil prices squeezing profits; the debt ratio is 49.85%, and the current ratio is 1.62, indicating a need to be cautious about repayment pressure.
Growth Potential:
In the short term, the net profit in Q3 2025 is 144 million yuan (up 139% year-on-year), mainly due to the surge in AI server PCB orders; in the long term, a capital increase of 1.98 billion yuan is planned for the “AI Computing High-Density Circuit Board Project”, aiming for a profit growth of 60% by 2027 compared to the 2024 baseline.
2. Market Tags: Glamorous Themes but Profit Quality Needs Improvement
Concept Tags:
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AI Computing Power (800G/1.6T optical module PCB supplier)
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CPO Co-packaged Optics (technology reserve for optical module boards)
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Huawei Concept (one of the core customers)
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Thailand Factory (Southeast Asia capacity expansion).
It should be noted that the price-to-earnings ratio (TTM) is as high as 137.59 times, far exceeding the industry average, indicating a mismatch between theme heat and profit growth rate.
3. Management and Shareholder Structure: State-Owned Background Support, Frequent Capital Movements
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Actual Controller: Zhuhai Huashi Huanxin Fangke Investment Enterprise (Limited Partnership) holds 22.93% of shares, with a stable equity structure.
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Capital Movements:
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Capital Increase Plan: The capital increase application was accepted in August 2025, aiming to raise 1.98 billion yuan to enhance AI computing PCB capacity. If successful, it will dilute equity but enhance production capacity.
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Equity Incentives: In June 2025, a restricted stock incentive was launched, with performance targets of cumulative revenue growth of no less than 36.8% and cumulative profit growth of no less than 60% from 2025 to 2027.
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Shareholder Composition: The top ten shareholders hold 42.36% of shares, with active holdings from Hong Kong Central Clearing and Settlement System (northbound funds), but social security and securities funds have not directly appeared.
4. Financial Health Scan: Revenue and Profit Growth, but Cash Flow Under Pressure
Key Data (2025 Q3 Report):
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Revenue of 3.398 billion yuan (up 38.71% year-on-year), net profit of 317 million yuan (up 50.81% year-on-year), but the net operating cash flow is 546 million yuan, with a year-on-year growth rate (45.87%) lower than the profit growth rate.
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Asset Quality: Total assets of 8.881 billion yuan, net assets of 4.454 billion yuan (net asset per share of 1.04 yuan), but the price-to-book ratio is as high as 11.25 times, indicating severe asset premium.
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Delisting Risk: With revenue exceeding 3 billion yuan and four consecutive years of profitability, the probability is zero.
5. Valuation Assessment: Growth Gamble Under High PE
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Industry Comparison Method:
The median PE of the PCB industry is about 25 times, while Founder Technology’s current PE (TTM) is 137.59 times, overvalued by 450%; however, if calculated based on the predicted net profit of 353 million yuan in 2025 (consensus among institutions), the dynamic PE is about 142 times, still at a high level.
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Asset Value:
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Capacity Revaluation: After the capacity release of the Thailand factory, the market share of AI computing PCBs is expected to increase to 15%.
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Historical Percentile: The stock price of 11.72 yuan is at the 85th percentile of the 52-week range (3.49-12.55 yuan), near a three-year high.
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Reasonable Market Value Estimate:
Based on the predicted net profit of 353 million yuan in 2025, a PE of 40 times (AI concept premium) gives a reasonable market value of 14.1 billion yuan (current 50 billion, overvalued by 255%).
6. Operational Strategy: Caution in High Pursuit, Corrections are Opportunities
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Entry Buy Price: 7-8 yuan (corresponding to a 2025 PE of 60 times, testing the annual line support).
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Take Profit Sell Price: 13-14 yuan (requires AI server orders to exceed expectations or profits from the Thailand factory to be realized ahead of schedule).
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Current Price Percentile: The price of 11.72 yuan is at the 85th percentile of the past three years (high stock price, low safety margin).
Future Trend Projection:
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Optimistic Scenario: In Q4 2025, a surge in optical module demand leads to a net profit of 400 million, with a market value of 60 billion yuan.
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Pessimistic Scenario: Failed capital increase + worsening price war, stock price falls back to the 6 yuan platform.
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Key Signals: Results of capital increase review, changes in Q4 gross profit margin, movements of northbound funds.
Disclaimer: The data in this article comes from company announcements and authoritative platforms and does not constitute investment advice. Although Founder Technology is in the AI golden track, investors should be aware: high valuations may overdraw future expectations, and if performance does not meet expectations, a significant correction may occur!
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Disclaimer:
1. This public account is merely a record of personal review notes, and all content in this article is for sharing and communication purposes only, not constituting any actual operational advice. Investors trading based on this may bear risks and are responsible for their own profits and losses;
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