Tracking of Hong Kong stocks | Victory Giant Technology's better-than-expected performance validates the business logic of "binding top customers+occupying high-end technology". Acceleration of domestic substitution in PCB (including concept stocks)

Victory Giant Technology's net profit in the first quarter reached a median of 880 million yuan, a year-on-year increase of 319%, and this figure hides three underlying logics: AI orders accounted for over 60%: The company's AI server PCB (including NVIDIA GB200 supporting products) single-quarter delivery exceeded 2 billion yuan, with high-layer boards (24-40 layers) and HDI boards accounting for 75%. The gross profit margin of these products is as high as 35%-40%, far exceeding the traditional PCB margin of 20%-25%. Both capacity utilization and yield rate increased: The company's HDI board production line capacity utilization increased from 80% in 2024 to 95%, and the yield rate surpassed 85% (industry average 70%), leading to a 12% decrease in unit costs. Effective tariff avoidance strategy: The Thailand base will start production in the second quarter, taking on 30% of NVIDIA's global PCB orders, effectively hedging potential tariff risks. Implication: The profitability of PCB companies has shifted from "scale-driven" to "technology + customer" dual-wheel drive. Victory Giant Technology's outstanding performance has verified the business logic of "binding top customers + positioning high-end technology". The three-piece PCB design used in the NVIDIA GB300 server drives the evolution from 24 layers to 40 layers, expanding the single board area by 50% and boosting ASP (average selling price) by 70%. The global computational PCB market size is expected to reach 59.2 billion yuan by 2025, with AI server PCB growing at over 100%, and the technological gap forming a moat leading to industry differentiation. Haitong pointed out that servers, storage, artificial intelligence, automotive electronics, and communication devices including foldable phones will drive the growth of PCB-related product demand. Since 2024, with the explosive growth in AI-driven infrastructure such as switches and servers, a new cycle of AI innovation in smartphones and PCs, and the increase in demand and prices due to the implementation of electric and intelligent vehicles, the demand for high-end products such as HDI and higher-layer multi-layer boards has rapidly increased, leading to continued prosperity in the PCB industry. Hong Kong-listed companies related to the PCB sector: CCTC Integrated Board (01888): KB LAMINATES, a leader in the copper-clad board industry, has the flexibility to adjust prices as copper prices rise in 2024, coupled with downstream demand gradually recovering. With vertical integration in the supply chain and cost advantages from scale, the company is expected to drive revenue and profit growth back on track in 2024. KINGBOARD HLDG (00148): Laying out the entire industry chain of upstream raw materials and downstream PCBs. In the mid-year report disclosed in 2024, the group is vigorously building a copper-clad board R&D center, equipped with high-precision equipment, and has successfully developed various high-frequency and high-speed products that can be used on GPU motherboards in AI servers.