KeXiang Co., Ltd.: Positioning in the Core AI Computing Track, PCB Business Welcomes High Growth1. Industry Overview: AI Drives the PCB Industry into a High Growth CycleAgainst the backdrop of the global explosion of artificial intelligence technology, PCB (Printed Circuit Board), known as the “mother of electronic products,” is a key foundational component of core hardware such as AI servers and data centers. Its market demand is rising in sync with the exponential growth of computing power.
According to Prismark data, the global PCB market size is expected to exceed $78.6 billion by 2025, with the PCB segment for AI servers performing particularly well, boasting a compound annual growth rate of 32.5%, significantly higher than the overall average growth rate of the PCB industry, indicating that the industry is entering a new phase of high growth.2. Core Competitiveness of the Company: Multi-Track Positioning to Build Competitive BarriersKeXiang Co., Ltd. continues to delve into high-growth tracks such as advanced HDI, high-speed optical modules, AI terminal support, and low-altitude economy (drones), forming multi-dimensional competitive advantages through technological accumulation and market layout, as detailed below:(1) Advanced HDI: Dual Positioning in Technology and Capacity, Seizing the Incremental Market of AI Servers. The value of advanced HDI (High-Density Interconnect) is highlighted as it is a core incremental segment for AI servers. For example, the NVIDIA GB200 server has PCB process requirements reaching 6 stages and 24 layers, with a very high technical threshold. In terms of value, some advanced HDI can reach a price of 40,000 yuan per square meter, and the value of a single cabinet PCB can reach 145,000 yuan, several times that of traditional servers, indicating significant incremental space in the industry. The company is technologically advanced: KeXiang Co., Ltd. is one of the few domestic companies capable of mass production of 14-16 layer HDI boards and has made breakthroughs in 18-24 layer HDI technology; additionally, leveraging advanced technologies such as 30-45μm ultra-thin PP lamination, the company can produce products with up to 42 layers in the high multi-layer via board field, placing its technical strength at a leading level in the country. Capacity and customer layout: The company plans to raise 300 million yuan for upgrading PCB production lines for high-end servers, which will add an annual production capacity of 100,000 square meters of high-end server PCBs, further enhancing its market share in the AI server field. In terms of customers, the company maintains deep cooperation with leading server manufacturers such as New H3C, Great Wall, and Inspur, which is expected to benefit significantly from the demand growth brought by the explosion of domestic computing power. The market outlook is broad: it is expected that by 2027, the global HDI PCB market size will reach $14.58 billion, and the company’s technological and customer advantages in this field are expected to continue translating into performance growth.
(2) High-Speed Optical Modules: Entering the Supply Chain of Giants, Benefiting from the Maturation of High-Speed Optical Module Upgrade Technology Platform. KeXiang Co., Ltd. has established a mature PCB technology platform for 200G/400G optical modules and is actively advancing the research and development of key technologies for 800G optical modules, keeping pace with the industry’s high-speed upgrade trends. Quality customer structure: In terms of customer cooperation, the company has achieved stable supply to leading communication equipment manufacturers such as ZTE and Ruijie Networks; more importantly, the company has successfully entered the supply chains of global giants such as Amphenol (the largest supplier of connectors for NVIDIA data centers) and MOLEX, achieving stable delivery of PCBs for high-speed connectors, gradually building customer barriers. Industry dividends are expected: As optical modules upgrade to 800G and higher speeds, the industry’s performance requirements for PCBs continue to rise. With its technological advantages, the company is expected to fully enjoy the market growth dividends brought by the high-speed upgrade of the optical module industry.(3) High-End Consumer Electronics: Binding AI Terminal Iteration, Undertaking Explosive Demand Growth. AI smartphones, AI PCs, and smart wearables are accelerating iteration, driving a surge in demand for high-end PCBs. According to Canalys, it is predicted that by 2028, the shipment proportion of AI smartphones will reach 54%, and the increase in terminal penetration will bring vast demand space for the high-end PCB industry. Product precision matching: In response to the demand characteristics of miniaturization and high performance in consumer electronic devices, KeXiang Co., Ltd. has formed a differentiated product layout: in the field of foldable screen smartphones, FPC flexible boards have achieved stable supply; in the smart wearable field, through special material selection and circuit design optimization, the company helps devices achieve long battery life and lightweight, significantly enhancing user experience. Stable customer cooperation: The company maintains long-term cooperative relationships with well-known consumer electronics brands, and with product competitiveness and cooperation stickiness, it is expected to continue undertaking incremental orders brought by the increase in AI terminal penetration.(4) Low-Altitude Economy (Drones): Embedded in Leading Supply Chains, Opening New Growth Spaces. Policy and market dual drive: With the continuous release of policy dividends in the low-altitude economy, the demand for drones is rapidly growing, becoming a new growth point for the PCB industry. Significant technological advantages: KeXiang Co., Ltd. has significantly improved the signal transmission stability of PCBs by using high-frequency materials and low signal loss media, with product performance meeting the high-precision operational needs of drones. Drones equipped with the company’s high-frequency PCBs have shown a 30% improvement in image clarity and stability in high-precision aerial photography scenarios compared to industry standards, highlighting the company’s technological advantages. Deeply embedded in the supply chain: Currently, the company’s PCB products are deeply embedded in DJI’s supply chain, applied in various drone scenarios such as aerial photography and logistics; as the application scenarios of the low-altitude economy continue to expand, this business segment is expected to contribute significant incremental growth to the company’s performance.
3. Future Outlook: Multi-Business Collaboration to Enjoy the Dividends of the AI Computing RevolutionIn addition to the core businesses mentioned above, KeXiang Co., Ltd. is also actively promoting cooperation with overseas giants such as IBM and AMD, while making forward-looking layouts in the field of flexible PCBs for humanoid robots, reserving new momentum for future growth.In the future, as the company’s fundraising projects gradually reach production capacity, the scale of production capacity will further expand; coupled with the continuous release of demand in fields such as AI servers, high-speed optical modules, AI terminals, and the low-altitude economy, the company is expected to fully enjoy the industrial dividends brought by the AI computing revolution, achieving rapid business growth.Risk Warning: Risk of Intensified Industry Competition: The PCB industry has many participants, and if industry competition intensifies in the future, it may lead to pressure on product prices and fluctuations in market share. Risk of Technology Development Falling Short of Expectations: If the company’s technological development in advanced HDI, 800G optical modules, etc., does not keep pace with industry upgrade rhythms, it may affect the company’s market competitiveness. Risk of Customer Cooperation Stability: If the order demand from core customers fluctuates or the cooperative relationship changes, it may have a certain impact on the company’s performance. Risk of Fundraising Project Implementation: There may be uncertainties in the construction progress of fundraising projects, the pace of capacity release, and the matching of market demand, affecting the expected benefits of the projects.
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