A performance tsunami triggered by AI computing power is making the PCB industry a star in the capital market.When you are scrolling through your phone, using AI chatbots, or watching high-definition videos online, you might not realize that it all relies on green PCB circuit boards. These seemingly ordinary basic components staged a remarkable performance surge in Q3 2025.The latest Q3 reports from four listed companies in the PCB industry—Huadian Co., Shenghong Technology, Shengyi Electronics, and Honghe Technology—collectively depict a picture of high growth in the industry.Revenue and net profit growth rates year-on-year have almost all exceeded 50%, with some even reaching several times. This is no longer a simple industry recovery but a feast driven by the demand for AI computing power.—
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Industry Boom: All Four Companies Report ProfitsLooking at the Q3 reports of the four PCB companies, the most intuitive feeling is a chorus of growth. From industry leaders to niche experts, all have enjoyed this wave of industry dividends.Huadian Co., as a long-established powerhouse in the industry,reported revenue of 13.512 billion yuan in the first three quarters,an increase of 49.96% year-on-year; net profit was 2.718 billion yuan, up 47.03% year-on-year. This scale combined with such growth rate highlights the unity of its industry position and growth potential.Shenghong Technology performed even more impressively, with revenue of 14.117 billion yuan in the first three quarters, a year-on-year increase of 83.40%; net profit reached 3.245 billion yuan, soaring 324.38% year-on-year.The dual high-speed growth of revenue and profitmakes it one of the brightest stars in the industry.Shengyi Electronics achieved leapfrog development, with revenue of 6.829 billion yuan in the first three quarters, a year-on-year increase of 114.79%; net profit was 1.115 billion yuan, up 497.61% year-on-year.Over five times profit growthhas caught the market’s attention.Honghe Technology, although relatively smaller in scale, also showed impressive growth, with revenue of 852 million yuan in the first three quarters, a year-on-year increase of 37.76%; net profit soared 1696.45% to 139 million yuan.The transformation from thin profits to substantial profitshighlights the overall prosperity of the industry.
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Growth Engine: AI Computing Power Drives High-End PCB MarketWhat exactly is driving the explosive growth of the PCB industry? The four companies unanimously pointed to the same direction in their financial reports—the rapid development of AI computing infrastructure.Huadian Co. clearly stated that the growth in performance is mainly due to the “structural demand for printed circuit boards from high-speed computing servers and emerging computing scenarios such as artificial intelligence.” This long-established manufacturer has precisely positioned itself in the AI server track based on its deep accumulation in the high-end PCB field.Shenghong Technology revealed in its financial report that the company continues to promote its high-end product strategy,with significant contributions from AI server-related products. The stock issuance for specific targets to fund the Shenghong AI HDI project in Vietnam and the Thailand business-level printed circuit board project is precisely aimed at seizing the global AI computing layout opportunities.Shengyi Electronics even stated that the company has “increased the proportion of high value-added products, continuously consolidating its competitive advantage in the mid-to-high-end market.” It is reported that Shengyi Electronics has launched the “Intelligent Manufacturing High-Multilayer Computing Circuit Board Project,” with a total investment of about 1.9 billion yuan,targeting the mid-to-high-end market demand for servers and AI computing.Honghe Technology, as a supplier of electronic-grade fiberglass cloth, provides essential raw materials for PCB manufacturing. The company stated that its performance growth mainly stems from the “year-on-year increase in the price of ordinary mid-to-high-end electronic-grade fiberglass cloth and the year-on-year increase in sales.”The prosperity of upstream material suppliers confirms the overall prosperity of the industry.
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Financial Health: Not Just Revenue Growth, But Profit GrowthHealthy performance growth is reflected not only in the expansion of revenue scale but also in the improvement of profit quality and optimization of financial structure.In terms of profitability, the gross profit margin and net profit margin of the four companies have generally improved. Shenghong Technology’snet profit margin reached 22.98%, Huadian Co. also reached 20.11%, and Shengyi Electronics was at 16.32%, all at a relatively high level in the manufacturing industry.The cash flow situation is also encouraging. Huadian Co. reported a net cash flow from operating activities of 2.895 billion yuan, an increase of 55.63% year-on-year; Shenghong Technology reported 2.383 billion yuan, a growth of 94.28%; Shengyi Electronics reported 808 million yuan, an increase of 144.17%.Abundant cash flow provides a solid foundation for corporate expansion.In terms of R&D investment, all companies maintain high intensity. Huadian Co. invested 792 million yuan in R&D, an increase of 37.25% year-on-year; Shenghong Technology invested 608 million yuan, an increase of 84.43%; Shengyi Electronics invested 327 million yuan, an increase of 64.26%.Continuous R&D investment reserves ammunition for future competition.The asset structure is also being optimized. Huadian Co.’s total assets grew by 24.24%, Shenghong Technology by 59.65%, and Shengyi Electronics by 45.96%. The expansion of assets is mainly directed towards fixed assets and construction projects, reflecting the company’s optimistic expectations for future demand.
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Future Layout: Advancing Globalization and High-End DevelopmentIn the face of industry opportunities, the four PCB companies have unanimously chosen a development strategy driven byhigh-end and globalization.Huadian Co. and Shenghong Technology have both initiated H-share issuance plans, seeking to list in Hong Kong. Huadian Co. stated that this move aims to “optimize overseas business layout and expand diversified financing channels”; Shenghong Technology clearly stated it is to “meet the needs of the company’s global development and deepen the company’s global strategic layout.”In terms of capacity expansion, all companies are increasing investments. Shengyi Electronics’ “Intelligent Manufacturing High-Multilayer Computing Circuit Board Project” plans to produce 700,000 square meters annually, and Shenghong Technology’s projects in Vietnam and Thailand are also actively advancing. These expansionsare mainly aimed at high-end product capacity, reflecting the trend of the industry moving towards high technology content and high added value.In terms of product structure, all four companies are transitioning towards high-layer boards, HDI, and high-frequency high-speed boards in high-end fields. These products precisely meet the higher requirements for PCBs posed by AI servers and high-speed network devices, with more considerable technical barriers and profit margins.
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Challenges and Risks: Cyclicality and Competition CoexistThe PCB industry has always had cyclical characteristics, and how long the current prosperity can last is a common concern among investors.Fluctuations in raw material prices are the primary risk. Changes in the prices of major raw materials such as copper foil, resin, and fiberglass cloth will directly affect the company’s gross profit margin. Although some material prices are currently stabilizing,the fluctuations in the global commodity market cannot be ignored.The risk of overcapacity brought about by capacity expansion is also worth noting. As major manufacturers expand production, if downstream demand slows, the industry may face pressure from overcapacity. How to accurately grasp the pace of expansion will test the wisdom of corporate management.The uncertainty of the global trade environment still exists. The PCB industry has a high degree of globalization, and changes in trade policies and geopolitical factors may impact the company’s overseas layout.Many companies have chosen to set up factories in Southeast Asia, which is partly a response to this risk.The challenges of technological iteration should not be underestimated either. The requirements for PCBs from AI computing devices are continuously increasing, and companies need to keep up with the latest technological trends to maintain leadership in materials, processes, and designs.If there is a misjudgment in the technological route, it may miss market opportunities.
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Investment Perspective: How to Seize Opportunities in the PCB IndustryFrom an investment perspective, this round of prosperity in the PCB industry has a solid demand foundation. The construction of AI computing is still in its early stages,and the demand for high-end PCBs is expected to continue to grow in the coming years.For value investors, attention can be paid to leading companies with deep technical foundations, high-quality customer resources, and sound finances in the industry. Such companies can not only enjoy industry dividends but also demonstrate resilience during cyclical fluctuations, achieving long-term stable returns.For growth investors, focus can be placed on companies with unique advantages in niche areas, clear expansion plans, and significant performance elasticity. During the industry’s upward phase, such companies may bring excess returns.Investors should also maintain risk awareness, closely monitor industry capacity expansion, changes in downstream demand, and fluctuations in corporate profitability.Instead of blindly chasing high points in the industry, it is better to choose quality targets when valuations are reasonable.The future AI revolution requires not only chips and algorithms but also the PCBs that connect everything.Huadian Co. has invested 1.64 billion yuan in fixed construction projects, Shenghong Technology is establishing a global layout in Vietnam and Thailand, and Shengyi Electronics has launched a 1.9 billion yuan computing circuit board project—these actions are more convincing than any predictions.The feast of the PCB industry continues, but the next phase will no longer be a general rise. Technical strength, product structure, customer quality, and global layout will determine who can run further in this golden track.