New stock preview | SSE Sci-tech Innovation Board IPO in Shanghai: seize the core link of AI infrastructure, can high growth be sustained?

Over the past two years, with the development of infrastructure such as servers and switches, the entire electronics industry chain has ushered in a new period of prosperity from Nvidia to optical modules. Among the many beneficiaries, the importance of PCB (printed circuit board) as the basic carrier of electronic products is being reevaluated by the market. Recently, the A-share PCB leader Shenzhen Fastprint Circuit officially submitted an application for listing on the Hong Kong stock market, planning to debut on the Hong Kong capital market. As a company that has been listed on the Shenzhen Stock Exchange for over fifteen years, Shenzhen Fastprint Circuit's move to Hong Kong is not to tell a new growth story, but more like a reexamination of its value to the international capital market against the backdrop of the reevaluation of the industry under the drive of AI computing power. As a provider of printed circuit board solutions, Shenzhen Fastprint Circuit has become the number one player in the global data communication PCB field and data center PCB field, deeply integrated with top AI infrastructure clients worldwide. With the continuous expansion of AI servers, high-speed switches, and data center construction, Shenzhen Fastprint Circuit's performance growth has significantly accelerated. However, as a typical manufacturing enterprise, it also faces challenges such as industry cycles, customer concentration, and risks of technological iteration. The explosive growth of AI capital expenditure and the opening of the growth ceiling for high-end PCB leaders The PCB industry itself is not a new industry, but with the advent of the AI era, the importance of high-end PCBs is rapidly increasing. In simple terms, AI training and inference require a large number of servers, switches, and network devices for data transmission, and PCBs play a crucial role in signal transmission, power supply, and component connection. As server performance continues to improve and network transmission rates upgrade from 400G to 800G or even 1.6T, the requirements for PCB layers, materials, and processes also significantly increase. With the accelerated iteration of generative AI large models, the demand for hardware in the intelligent computing center is growing exponentially, especially in the high-speed network switch, router, and AI server fields. Shenzhen Fastprint Circuit currently has the manufacturing technology for PCB boards with over 100 layers and has successfully mass-produced complex PCB products with 54 layers of "N+M" structure. In the high-speed network switch markets of 800G and 1.6T where the urgent need for computing power is strongest, Shenzhen Fastprint Circuit's high-layer boards have become an indispensable part of the core supply chain. According to the prospectus, the company has achieved full coverage of the top five global communication equipment companies, the top five global AI computing infrastructure listed companies, and four of the top five global automotive Tier 1 suppliers, with some core customers having more than 20 years of cooperation. This customer structure indicates that Shenzhen Fastprint Circuit is embedded in the core supply chain of global AI infrastructure construction. In terms of financial data, the explosive growth confirms this market position. From 2023 to 2025, the company's revenue will reach 8.938 billion yuan, 13.342 billion yuan, and 18.945 billion yuan, respectively, more than doubling in two years. During the same period, net profit increased from 1.513 billion yuan to 3.822 billion yuan, with profit growth outpacing revenue growth, and gross margin increased from 28.4% to 33.8%, reaching 34.8% in the first quarter of 2026. In terms of product structure, the revenue from data communication business accounted for 65.7% in 2023; by 2025, it had increased to 77.4%. In the first quarter of 2026, it further reached 81.9%. Among them, the revenue share of high-speed switches and routers business increased from 28.2% in 2023 to 51% in the first quarter of 2026, indicating that the company is increasingly relying on the demand for AI data center network infrastructure. It is worth mentioning that the PCB industry often has distinct technological layers, with higher layers posing greater design and manufacturing challenges and higher technological barriers. In 2023, the revenue share of high-end PCBs with 32 layers and above was only 8.5%; by 2025, it had increased to 22.4%; and in the first quarter of 2026, it further reached 32.1%, with sales of high-layer PCBs with 32 layers and above nearly quadrupling. High-layer PCBs are typically used in high-end scenarios such as AI servers, 800G switches, 1.6T switches, and high-performance computing systems. In other words, Shenzhen Fastprint Circuit has not only achieved scale growth in recent years but more importantly, it has also upgraded its product structure, leading to continuous improvement in gross margin and profitability. In terms of technological reserves, the company has mastered manufacturing technology for PCBs with over 100 layers, achieved mass production of 44-layer "N+N" structure and 54-layer "N+M" structure products, and validated 10-step HDI technology. In the AI era, the high-speed signal transmission requirements for PCBs are much higher than traditional electronic products, and the increase in technical barriers has actually reinforced the advantages of leading companies. When the AI dividend meets the manufacturing industry cycle, the company's growth space remains to be verified Despite Shenzhen Fastprint Circuit's excellent performance in technology and performance, its future growth path is not without challenges, and the company needs to maintain a precise balance between aggressive production line construction and complex macro risks. As indicated in the company's prospectus, geopolitical risks are a reality the company must face. In recent years, the fluctuation of tariff policies due to the trade tensions between China and the US has been significant. Although the company has controlled the direct impact within a limited range by adjusting the supply chain and transferring tariff obligations, the escalating export control measures imposed by the US still loom as a potential threat. Currently, some of Shenzhen Fastprint Circuit's clients and suppliers are on the US BIS Entity List or 1260H List. Although legal advisers believe that the majority of the company's products are not subject to the Export Administration Regulations and have not violated relevant regulations so far, the ongoing geopolitical tensions could potentially limit the company's ability to acquire cutting-edge production equipment or serve specific international customers in the long run. For hedge against the risk of single-region production and deepening globalization, Shenzhen Fastprint Circuit is accelerating the construction of its production base in Thailand. A significant portion of the net proceeds from this Hong Kong listing will be invested in expanding the capacity of bases in Kunshan, Huangshi, Jinan, and taking up the mission to support the Thai base as an overseas high-end production pivot. Furthermore, as the PCB industry is a dual-intensive industry requiring both technology and capital, substantial capital investment is needed for large-scale production capacity expansion. If there are fluctuations in downstream application demand in the future, the depreciation costs from idle production lines could directly erode profits. At the same time, cost pressures must not be overlooked. Raw material costs account for over 60% of Shenzhen Fastprint Circuit's sales costs, with the prices of copper foils, anode coppers, and other copper-related materials closely tied to the international commodity market fluctuations. While the company has signed long-term contracts with suppliers and implemented flexible pricing mechanisms to mitigate these pressures, in an environment of intensified industry competition and enhanced cost control awareness among downstream customers, the company may not fully transfer the pressure of rising raw material costs to end customers. Moreover, with the continuous increase in R&D investment, with R&D expenses accounting for 6.7% in the first quarter of 2026, whether the company's substantial R&D spending can the expected commercial return also carries technological iteration risks. Particularly facing challenges such as new system-level packaging technologies like CoWoP, Shenzhen Fastprint Circuit must maintain continuous disruptive innovation to ensure it remains ahead of competitors. Overall, the biggest investment logic for Shenzhen Fastprint Circuit lies in its position as a key supplier in the global AI infrastructure industry chain. Compared to many AI companies still in the conceptual stage, the company has real and rapidly growing profitability. However, the company's current valuation logic largely relies on the sustained high growth of AI capital expenditure. As a hardware industry chain enterprise, its profitability will still be influenced by industry cycles ultimately. From this perspective, Shenzhen Fastprint Circuit is not simply an AI concept stock but more like a high-end manufacturing leader using the AI wave to complete industrial upgrading. The key to sustaining its growth in the future still depends on the continuity of the global computing construction cycle and the company's ability to maintain technological leadership in higher-end PCB fields.