The global AI wave is sweeping in, with a surge in computing power demand, PCBs serving as the “skeleton” of electronic products and the “highway” for signal transmission, are experiencing a new round of technological upgrades and demand expansion in fields such as AI servers, intelligent driving, and consumer electronics.
According to industry reports, the global server PCB market size is expected to reach approximately $10.9 billion in 2024, and is projected to grow to $18.9 billion by 2029, with a compound annual growth rate of 11.6%. The growth of the AI server PCB market is even more rapid, expected to increase from 12 billion yuan in 2023 to 80 billion yuan in 2025, with a compound growth rate exceeding 150%.
In this round of industrial upgrades, some PCB companies have emerged due to their technological positioning and capacity layout, while there are still some undervalued quality targets in the market. The following five A-share companies, which are relatively low-positioned but have explosive growth potential, are worth paying close attention to.
The first company is Shenghong Technology.
It is an invisible champion in the high-end PCB field.
Low-position characteristics: Based on institutional forecasts of its 2025 net profit averaging 4 billion yuan, the dynamic price-to-earnings ratio is only about 16 times, significantly lower than the 25 times average level of the PCB industry (such as Shenzhen South Circuit). The price-to-book ratio also has advantages, showing a high cost-performance ratio.
Factors driving explosive growth:
1. Core supplier position for AI servers: As a core supplier of NVIDIA’s AI server PCBs, the delivery amount of AI server PCBs in the first quarter of 2025 is expected to exceed 2 billion yuan, accounting for more than 60% of revenue. The value of a single NVIDIA GB200 server PCB can reach as high as $171,000, which is 5-6 times that of traditional servers.
2. Deep technical barriers: The company is 2-3 years ahead of the industry in high-layer PCB and high-end HDI technology, and is one of only two companies in the world capable of mass production of 6-layer HDI (the other being Taiwan’s Unimicron), with cutting-edge technologies such as 8-layer HDI and wafer-level PCB already in the pilot stage.
3. Accelerated capacity expansion: The Huizhou factory’s AI computing power expansion project is expected to be put into production in June 2025, with rapid progress in expansion projects in Thailand and Vietnam, and by 2025, overseas capacity will account for more than 40%.
The second company is Jintuo Co., Ltd.
It is a leading player in the PCBA equipment segment.
Low-position characteristics: The current stock price corresponds to a forecasted PE of only 32 times for 2025, and the PE for 2026 and 2027 will further drop to 19 times and 15 times, respectively. The company’s performance in Q1 2025 has shown a turning point, with net profit attributable to the parent company increasing by 137% year-on-year.
Factors driving explosive growth:
1. AI drives demand for PCBA equipment: The company mainly produces electronic assembly equipment (such as reflow soldering ovens) used to build PCBA production lines. With the surge in shipments of AI terminal devices, the demand for PCBA process equipment is rising sharply. As a leading player in this segment, the company holds a global market share of about 30%.
2. Binding with top customers: Clients include globally renowned PCB manufacturers and electronic assembly giants such as Shenzhen South Circuit, Flex, and Foxconn, ensuring strong order stability.
3. Continuous technological innovation: Actively developing cutting-edge technologies such as all-DC reflow soldering and AI intelligent board optimization technology, leading the digital transformation in the industry. The implementation of equity incentives (grant price 8.56 yuan/share) deeply binds the core team.
The third company is Ultrasonic Electronics.
It is a domestic pioneer in high-frequency and high-speed PCBs.
Low-position characteristics: The price-to-earnings ratio TTM is only 28.69, below the industry average. The company’s annual production capacity for high-frequency PCBs ranks among the top three in the country, with a significant mismatch between technical strength and valuation.
Factors driving explosive growth:
1. High-end HDI technology advantage: The company has the production capacity for 1-6 times stacked HDI boards, with a maximum PCB layer count of 42 layers. High-end HDI is a core requirement for AI servers and high-end communication equipment.
2. Dual drive from servers and automotive electronics: Orders in the AI server PCB field are growing rapidly, while the company is also deeply involved in automotive electronics PCBs, covering mainstream automotive manufacturers. The increase in intelligent driving penetration is pushing the per-vehicle value of automotive PCBs to exceed 3,000 yuan, which is 5 times higher than traditional vehicles.
The fourth company is Helitai.
It is an extremely undervalued FPC breakout player.
Low-position characteristics: The price-to-earnings ratio TTM is only 9.79, far below the industry average, making it a significantly undervalued target in the PCB industry chain.
Factors driving explosive growth:
1. The popularity of AI terminals drives demand for FPCs: The company focuses on flexible printed circuits (FPCs), widely used in consumer electronics. With the proliferation of AI smartphones and AI PCs, the demand for lightweight and highly flexible FPCs is surging.
2. Solid customer and technical foundation: FPC technology has formed mature applications in the consumer electronics field, with clients including many well-known domestic and foreign companies. If the consumer electronics market recovers alongside the release of AI terminals, the company’s performance will have significant elasticity.
The fifth company is Chongda Technology.
It is a growth stock with capacity expansion and structural optimization.
Low-position characteristics: The company’s capacity utilization has reached 85%, close to saturation, but the market’s understanding of the growth potential brought by its new capacity release is insufficient.
Factors driving explosive growth:
1. Continuous release of high-end capacity: The first factory in Zhuhai (automotive, security), the second factory in Zhuhai (servers, communications) are ramping up high-layer PCB capacity; the third factory in Zhuhai has completed infrastructure; the Thailand base is accelerating construction; and a new HDI factory in Jiangmen is being planned.
2. Product structure optimization and efficiency improvement: Focusing on high-value-added products such as servers, communications high-layer boards, and mobile phone HDI boards. The IC carrier board business is handled by a subsidiary, improving the product matrix.
3. Industry prosperity support: According to Prismark’s forecast, the global PCB output value is expected to grow by 6.8% year-on-year in 2025, with strong domestic and international order demand for Chongda Technology.
Original content is not easy to create, please pay attention and support, bookmark, and get professional and valuable hot trends at the first time every day. If you find this article helpful, feel free to like, share, and spread investment opportunities with more friends!