In July of this year, Nvidia became the first company in the world to surpass a market value of $4 trillion, and on August 12, its closing market value reached $4.5 trillion. “Nvidia has no limits,” some commentators exclaimed.
Nvidia’s soaring success has also ignited a surge in related stocks in the A-share market, including Shenghong Technology (300476), a printed circuit board (PCB) company from Huizhou, Guangdong, whose stock price has increased by over 450% this year. On August 18, Shenghong Technology’s stock price hit 245 yuan per share, with a total market value exceeding 200 billion yuan, making it the “king of PCB stocks.”
Exiting from the Huizhou Danzhou East Expressway, it takes just a few hundred meters to reach Shenghong Technology’s industrial park. In this modern industrial park covering nearly 400 acres, dozens of modern factories and dormitories are neatly arranged in a figure-eight shape. From January to now, this company has achieved a stock price increase of over 450%, and its market value recently surpassed 200 billion yuan, rising to become “the number one stock in Huizhou,” attracting market attention.
Looking back 30 years to 1996, the domestic PCB industry was in its infancy, facing enormous market development potential, but the industry’s own technology and market capabilities still needed improvement. That year, Chen Tao entered a Taiwan-funded PCB company in Huizhou, rising from grassroots sales to senior management, and in 2003, he founded Shenghua Electronics. Three years later, he acquired 400 acres of land to establish Shenghong Technology. Shenghong Technology began production in 2008 and went public in June 2015.
Ten years ago, Shenghong Technology entered the A-share market with a revenue of 1.285 billion yuan and a net profit of 127 million yuan, while the industry leader, Unimicron Technology, had not yet gone public but had already achieved revenue of 17.093 billion yuan and a net profit of 1.526 billion yuan. Even today, these figures remain achievements that Shenghong Technology has yet to reach.
From a new vantage point, Chen Tao may have many reflections. According to statistics, as of the close on August 22, among the major PCB leaders, the market values ranked as follows: Shenghong Technology, Unimicron Technology, Shunyu Technology (600183), Huada Empyrean (002463), Shenzhen South Circuit (002916), and Dongshan Precision (002384), corresponding to 189.878 billion yuan, 120.307 billion yuan, 115.657 billion yuan, 107.031 billion yuan, 99.958 billion yuan, and 97.551 billion yuan, respectively. The remaining companies in the industry have market values of no more than 50 billion yuan, with a clear gap below Shenghong Technology.
The story that rewrote Shenghong Technology’s fate occurred in 2019. At that time, Chen Tao made a counterintuitive decision—while the industry generally viewed high-end HDI (High-Density Interconnect) investments with skepticism, he established an HDI division, officially entering a field with higher product added value. This allowed Shenghong Technology to enter Nvidia’s H-series AI accelerator card supply system in 2023 and achieve Tier 1 supplier status through GB200 product certification in 2024.
After entering the HDI field, Shenghong Technology entered a period of rapid growth, with revenue growth rates of 17.58%, 44.15%, and 32.72% from 2019 to 2021, respectively. By 2024, it is expected to surpass the 10 billion yuan revenue mark for the first time, reaching 10.731 billion yuan, with a net profit of 1.154 billion yuan. Nevertheless, this revenue scale still does not dominate the PCB industry, and among the aforementioned six companies, it ranks last.
Shenghong Technology stated that in the first quarter of 2025, revenue from AI computing power and data center-related products will account for over 40%, with the global market share in multiple AI-related fields being first. However, regarding investors’ concerns about “what percentage of the company’s revenue comes from Nvidia sales,” Shenghong Technology previously replied, “Due to confidentiality considerations, we cannot disclose this information.”
Performance Outlook: The company preliminarily predicts that the net profit in the second quarter of 2025 will increase by no less than 30% compared to the previous quarter, and the net profit in the first half of 2025 will increase by over 360% year-on-year. The semi-annual report on August 27 is worth looking forward to. Source: Daily Economic News