《Hong Kong Stock View》Shenghong Technology (02476), one of the global leading PCB suppliers, has been deeply rooted in the industry for over twenty years. The company listed on the Hong Kong Stock Exchange in April 2026, relying on three core sectors—AI computing power, high-end communications, and new energy—to continuously advance capacity expansion and product upgrades, demonstrating medium- to long-term investment value.
Since the beginning of this year, the company has firmly adhered to its strategy of "embracing AI, heading towards the future," focusing on high-value-added high-end PCB products, accelerating capacity layout and customer expansion simultaneously, and continuously strengthening the momentum of business growth. On the product front, the company's high-end technology capacity has been fully implemented. The dedicated mSAP workshop in Huizhou is operating at full capacity, primarily meeting the mass production needs of 1.6T high-speed optical modules, aligning with the trend of hardware upgrades for high-speed AI computing transmission. Meanwhile, the company has overcome core technical challenges such as 14-layer HDI and vertically embedded power supply capacitance, achieving mass production of key products including AI computing cards, data center switches, and high-end server PCBs. The revenue contribution from high-end products continues to rise, and the product mix is continuously optimized.
Capacity expansion and global layout are progressing steadily, with orderly advancement in overseas capacity construction. The utilization rate of Phase I production capacity at the Thailand production base Building A1 remains high. The Phase II high-end production lines have passed factory audits and certifications from multiple international leading customers. Building A2 has been successfully topped out, with subsequent equipment installation and customer certification progressing steadily, helping the company circumvent trade barriers and secure high-end overseas orders. On the customer front, the company continues to deepen cooperation with top-tier clients, adding over 50 high-quality new customers in the first half of 2026, more than half of which are high-end enterprises in the AI field. The company is also deeply involved in the research, development, and mass production of PCB products配套 for ASIC computing chips, with ample high-quality orders secured both domestically and internationally.
In addition, the company has improved its talent and incentive systems, implementing a restricted stock and employee shareholding plan in September 2026, aligning the interests of the core team. Combined with the continuous upgrading of digital smart factories and green manufacturing systems, production efficiency and profit stability have further improved, laying a solid foundation for long-term performance growth.
The previously announced interim results showed the company's performance continued its steady growth trajectory, with profitability continuously optimized. Revenue reached RMB 11.629 billion in the first half of the year, a year-on-year increase of 28.77%; net profit attributable to shareholders reached RMB 2.857 billion, up 33.30% year-on-year. The net profit growth rate exceeded revenue growth, reflecting improved profit structure driven by a higher proportion of high-margin, high-end products.
The core driver of performance growth stems from the high prosperity of the AI computing sector. Global expansion of AI infrastructure has driven an explosive demand for high-end PCBs. Leveraging its technological barriers and customer advantages, the company continues to secure orders for computing servers, high-speed optical modules, and data center hardware components. In terms of operational quality, relying on its global 4S service system, customer stickiness continues to strengthen, order delivery efficiency steadily improves, and the cost reduction and efficiency gains from smart factories are becoming evident, keeping the overall gross margin at an industry high.
On a quarterly basis, second-quarter performance growth slowed slightly. Combined with market concerns over short-term supply-demand dynamics in the industry, this triggered temporary sentiment fluctuations. However, the company's overall order book remains full and capacity continues to ramp up. The medium- to long-term logic for performance growth remains unchanged, demonstrating strong fundamental resilience.
Overall, in the short term, the company's orders for high-end optical modules and AI computing PCBs are robust, with capacity continuously being released. Third-quarter performance is expected to maintain steady growth, supporting continued stock price recovery. In the medium to long term, the three drivers—AI computing infrastructure evolution, overseas capacity coming online, and product mix upgrading—will continue to resonate, giving the company strong growth certainty.
By Huang Wai-ho, First Vice President, Yin Yuan World Creation Family Office (Hong Kong) (This column appears every Thursday)
*The author is a Securities and Futures Commission licensed professional and does not hold the aforementioned stocks.
*Articles published in《Economic Times》under a named or anonymous byline represent the authors' personal opinions and do not represent the position of《Economic Times》.《Economic Times》acts solely as a platform providing free speech.
Since the beginning of this year, the company has firmly adhered to its strategy of "embracing AI, heading towards the future," focusing on high-value-added high-end PCB products, accelerating capacity layout and customer expansion simultaneously, and continuously strengthening the momentum of business growth. On the product front, the company's high-end technology capacity has been fully implemented. The dedicated mSAP workshop in Huizhou is operating at full capacity, primarily meeting the mass production needs of 1.6T high-speed optical modules, aligning with the trend of hardware upgrades for high-speed AI computing transmission. Meanwhile, the company has overcome core technical challenges such as 14-layer HDI and vertically embedded power supply capacitance, achieving mass production of key products including AI computing cards, data center switches, and high-end server PCBs. The revenue contribution from high-end products continues to rise, and the product mix is continuously optimized.
Capacity expansion and global layout are progressing steadily, with orderly advancement in overseas capacity construction. The utilization rate of Phase I production capacity at the Thailand production base Building A1 remains high. The Phase II high-end production lines have passed factory audits and certifications from multiple international leading customers. Building A2 has been successfully topped out, with subsequent equipment installation and customer certification progressing steadily, helping the company circumvent trade barriers and secure high-end overseas orders. On the customer front, the company continues to deepen cooperation with top-tier clients, adding over 50 high-quality new customers in the first half of 2026, more than half of which are high-end enterprises in the AI field. The company is also deeply involved in the research, development, and mass production of PCB products配套 for ASIC computing chips, with ample high-quality orders secured both domestically and internationally.
In addition, the company has improved its talent and incentive systems, implementing a restricted stock and employee shareholding plan in September 2026, aligning the interests of the core team. Combined with the continuous upgrading of digital smart factories and green manufacturing systems, production efficiency and profit stability have further improved, laying a solid foundation for long-term performance growth.
The previously announced interim results showed the company's performance continued its steady growth trajectory, with profitability continuously optimized. Revenue reached RMB 11.629 billion in the first half of the year, a year-on-year increase of 28.77%; net profit attributable to shareholders reached RMB 2.857 billion, up 33.30% year-on-year. The net profit growth rate exceeded revenue growth, reflecting improved profit structure driven by a higher proportion of high-margin, high-end products.
The core driver of performance growth stems from the high prosperity of the AI computing sector. Global expansion of AI infrastructure has driven an explosive demand for high-end PCBs. Leveraging its technological barriers and customer advantages, the company continues to secure orders for computing servers, high-speed optical modules, and data center hardware components. In terms of operational quality, relying on its global 4S service system, customer stickiness continues to strengthen, order delivery efficiency steadily improves, and the cost reduction and efficiency gains from smart factories are becoming evident, keeping the overall gross margin at an industry high.
On a quarterly basis, second-quarter performance growth slowed slightly. Combined with market concerns over short-term supply-demand dynamics in the industry, this triggered temporary sentiment fluctuations. However, the company's overall order book remains full and capacity continues to ramp up. The medium- to long-term logic for performance growth remains unchanged, demonstrating strong fundamental resilience.
Overall, in the short term, the company's orders for high-end optical modules and AI computing PCBs are robust, with capacity continuously being released. Third-quarter performance is expected to maintain steady growth, supporting continued stock price recovery. In the medium to long term, the three drivers—AI computing infrastructure evolution, overseas capacity coming online, and product mix upgrading—will continue to resonate, giving the company strong growth certainty.
By Huang Wai-ho, First Vice President, Yin Yuan World Creation Family Office (Hong Kong) (This column appears every Thursday)
*The author is a Securities and Futures Commission licensed professional and does not hold the aforementioned stocks.
*Articles published in《Economic Times》under a named or anonymous byline represent the authors' personal opinions and do not represent the position of《Economic Times》.《Economic Times》acts solely as a platform providing free speech.
