[IPO Tracker] Shenghong Technology (02476.HK) Surges 13% to Hit a Record High: Opportunity or Bubble?

On May 11, the leader in AI PCB $VGT (02476.HK)$ surged 13.67%, hitting a new high since its listing, with its market value surpassing 380 billion Hong Kong dollars. Another PCB newcomer $DELTON (01989.HK)$ soared over 7%. Since its listing, the company's stock price has continued to rise, and its market value is now approaching 100 billion Hong Kong dollars.

Meanwhile, in the mainland China market, $Victory Giant Technology (300476.SZ)$ , along with Guanghe Technology (001389.SZ), also saw significant gains, demonstrating the considerable attention on the PCB sector.

The deeper logic behind the surge lies in the explosive growth of AI computing power, which is driving the PCB industry into an unprecedented 'super cycle'.

In the past, PCB was regarded as the 'mother of electronic products', with relatively stable growth. However, now, with NVIDIA leading the way, AI chip performance doubles with each generation, while power consumption, bandwidth, and packaging density skyrocket simultaneously, making it difficult for traditional PCBs to meet the requirements. High-layer boards, advanced HDI, and substrate PCBs are transitioning from supporting roles to center stage.

Simply put, AI servers require faster signal transmission, higher power density, and more complex inter-layer connections—all of which rely on the support of high-end PCBs.

Data shows that Shenghong Technology focuses on artificial intelligence and high-performance computing PCBs, with products covering advanced high-density interconnect (HDI) and high-layer PCBs (MLPCB), widely used in high-growth areas such as artificial intelligence, new energy vehicles, and high-speed network communications. Guanghe Technology is also a pure-play leader in 'AI server PCBs', achieving substantial success upstream in AI.

Analysts point out that AI technology is driving a structural opportunity in the PCB industry, and companies like Shenghong Technology and Guanghe Technology, as leaders in the PCB field, are accurately meeting the high-reliability and high-transmission efficiency demands of AI scenarios, fully benefiting from the development dividends of the AI track.

Previously, Shenghong Technology released its first quarterly report since its Hong Kong listing, delivering impressive results. Data shows that the company achieved revenue of 5.519 billion yuan (RMB) in the first quarter of 2026, representing a year-on-year increase of 27.99%; net profit attributable to shareholders reached 1.288 billion yuan, up 39.95% year-on-year. The net profit growth rate significantly outpaced revenue growth. In Q1, the company’s adjusted net profit attributable to shareholders was 1.257 billion yuan, up 36.07% year-on-year.

Guanghe Technology also released impressive results. According to its Hong Kong stock exchange announcement, the company achieved revenue of 1.914 billion yuan (RMB, same below) in the first quarter of 2026, a year-on-year increase of 71.35%; net profit attributable to shareholders was 393 million yuan, a year-on-year increase of 63.31%. The strong performance of the two companies further supports their rising stock prices.

Looking ahead, institutions remain bullish on the PCB sector. GF Securities published a research report stating that the PCB industry is policy-intensive, capital-intensive, and technology-intensive, with extremely high entry barriers. The Ministry of Industry and Information Technology has set high investment and production capacity standards, resulting in significant equipment and R&D investments in the PCB industry; complex manufacturing processes with interdisciplinary requirements; strict environmental protection standards and high export compliance costs; long certification cycles for major clients with strong stickiness. Multiple barriers are driving industry concentration towards leading companies, continuously optimizing the competitive landscape.

The institution further analyzed that NVIDIA's introduction of the 'decoupled inference' architecture splits Prefill and Decode into different hardware components, imposing higher demands on PCBs - higher-density HBM packaging substrates, faster inter-chip connectivity, and higher power density power supply and heat dissipation. In the evolution from chip to rack, HBM4 requires an interposer supporting kilobit-level I/O; CoWoS-L’s evolution into CoWoP allows PCBs to take on substrate-like functions for the first time; GB300 server PCB layers have jumped from 10 to over 20, with some high-end models reaching 34 to 64 layers; Rubin Ultra NVL576 replaces copper cables with a 78-layer M9-grade orthogonal backplane, handling full GPU interconnect communication within the cabinet. The core of industry competition has shifted from 'single-card computing power' to 'full-system interconnection bandwidth,' making PCB a key bottleneck in determining AI system computing power efficiency release, with technical thresholds and certification cycles now comparable to semiconductor packaging.

Conclusion—

However, beneath the feast, concerns cannot be ignored. Shenghong Technology's valuation is already at a relatively high level, with its Hong Kong stock dynamic P/E ratio exceeding 73 times, far surpassing traditional PCB enterprises. Guanghe Technology's Hong Kong stock dynamic P/E ratio has also exceeded 75 times, similarly at a historical high. High valuations imply strong expectations for future growth, and if earnings growth falls short of expectations, there may be significant downward pressure.

Although the PCB track is promising, multiple domestic manufacturers are accelerating production expansion, and other giants are also eyeing the market. Price competition and technological iteration risks will always exist in the future. For investors, the super cycle of AI PCB is worth looking forward to, but before chasing highs, more caution is still needed.

Author: Feiyu

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