Against the backdrop of the explosive demand for AI computing power and high-end hardware, the global PCB (Printed Circuit Board) industry is undergoing technological restructuring and capacity upgrades.
International investment banks such as Goldman Sachs, Morgan Stanley, JPMorgan, UBS, and Barclays have collectively targeted four small-cap PCB companies in China, sparking significant market attention towards this industry segment.
The collective bet by foreign capital on small-cap PCB companies essentially positions itself in anticipation of the industry’s technological upgrades and capacity restructuring.
Driven by sustained demand in AI computing power and automotive electronics, the “high-end” and “globalization” trends in the PCB industry will reshape the competitive landscape, with companies possessing technological flexibility and capacity adaptability likely to emerge as the biggest winners in this cycle.
1. Xilong Science (002584)
Main business: A domestic large-scale integrated supplier of chemical reagents, covering the R&D, production, and sales of chemical reagents, and involving some chemical raw materials, active pharmaceutical ingredients, and food additives. Its electronic chemicals segment includes chemical reagents for PCBs and ultra-pure chemical reagents, directly benefiting from the upgrade in high-end HDI board demand.
Profit situation: In the first half of 2025, total revenue was 3.368 billion yuan, a year-on-year decrease of 14.78%; net profit attributable to the parent company was -75.3173 million yuan, a year-on-year decrease of 276.35%, turning from profit to loss, mainly affected by market demand fluctuations and cost control pressures.
Foreign capital layout: In the first quarter of 2025, institutions such as Goldman Sachs, UBS, and Morgan Stanley increased their holdings or entered the market, becoming among the top ten circulating shareholders, indicating recognition of its potential for technological upgrades.
2. Taiyong Changzheng (002927)
Main business: Focused on the industrial electrical equipment sector, products include automatic transfer switches (ATSE), solid-state circuit breakers, etc., widely used in scenarios such as rail transportation, data centers, and hospitals. The company has developed its own charging pile PCB boards, entering the supply chain for 800V high-voltage platforms in new energy vehicles, with significant technological advantages.
Profit situation: In the first quarter of 2025, revenue was 194 million yuan, a year-on-year decrease of 11.57%; net profit attributable to the parent company was 13.56 million yuan, a year-on-year decrease of 10.87%, with a slight decline in performance but maintaining profitability, and R&D investment continues to increase.
Foreign capital layout: Goldman Sachs and UBS have newly entered, ranking as the seventh and tenth largest circulating shareholders, optimistic about its technological leadership in the high-end market and potential in the new energy vehicle sector.
3. Wanlong Magnetic Plastic (603150)
Main business: Centered on home appliance components, covering refrigerator door seals, EPS automotive components, small appliances, and materials (such as polymer PVC, magnetic materials) for R&D and production. By acquiring Thailand’s Tongtai, it is expanding its production of white goods PCBA boards, accelerating the globalization of its capacity.
Profit situation: In the first quarter of 2025, revenue was 909 million yuan, a year-on-year increase of 23.54%; net profit attributable to the parent company was 37.59 million yuan, a year-on-year increase of 8.89%, with both revenue and net profit achieving growth, and significant business expansion.
Foreign capital layout: UBS, Goldman Sachs, J.P. Morgan, Barclays, and Morgan Stanley have all newly entered, showing concentrated institutional attention on its technological synergy and capacity flexibility.
4. Yingkerui (300713)
Main business: Focused on the field of power electronics, products include electric vehicle charging power modules, power operation power modules, etc., widely used in industries such as new energy vehicles, power systems, and communications. The company’s 30KW and 40KW efficient low-noise modules have achieved mass production, with outstanding technological iteration capabilities.
Profit situation: In the first quarter of 2025, revenue was 82.65 million yuan, a year-on-year increase of 70.64%; net profit attributable to the parent company was -9.3528 million yuan, a year-on-year increase of 34.56%, although still in loss, the loss margin has narrowed, and business growth momentum is evident.
Foreign capital layout logic: Technological upgrades and valuation recovery
All four companies share the following characteristics:
Technological synergy: The PCB chemical reagents from Xilong Science, the charging pile PCB boards from Taiyong Changzheng, the PCBA capacity from Wanlong Magnetic Plastic, and the high-frequency power modules from Yingkerui are all closely related to high-end PCB demand.
Capacity flexibility: Small-cap companies have short decision-making chains and flexible expansion, allowing them to quickly respond to high-end order demands for servers, optical modules, etc.
Valuation recovery space: Compared to industry leaders, the stock prices of small-cap companies have not fully reflected the expectations of technological upgrades, and foreign capital is positioned to gain excess returns through low-level layouts.
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Driven by sustained demand in AI computing power and automotive electronics, the “high-end” and “globalization” trends in the PCB industry will reshape the competitive landscape, with companies possessing technological flexibility and capacity adaptability likely to emerge as the biggest winners in this cycle.
This article does not constitute investment advice. The market has risks, and decisions should be made cautiously.