New Stock Preview | Dynamic Electronics Sprinting Toward A+H: Clad in the Halo of an Automotive PCB Leader, Yet Three Years of Revenue Growth Without Profit Growth

On September 21, Dynamic Electronics Circuit Co., Ltd. (hereinafter referred to as "Dynamic Electronics") submitted a listing application to the Hong Kong Stock Exchange, with CICC and Guolian Securities International as joint sponsors. At this point, less than 11 months had passed since its listing on the Shanghai Stock Exchange Main Board, and the afterglow of a first-day surge of over 395% had not yet faded. It has already joined the queue at the Hong Kong Stock Exchange, officially launching its A+H layout. Of course, what the market sees is not just a capital move, but a strategic bet on the "long cycle of intelligentization." It is understood that Dynamic Electronics' growth narrative is not complicatedthe company takes automotive electronics PCB as its base, is currently charging toward high-end AI server boards, and is using its Thailand overseas base to open up a global supply chain. But the easiest mistake for the capital market to make is to directly equate "sector imagination" with "certain returns." The real value test has never been at the moment the bell is rung, but is hidden in the yield, cost, delivery, and sustained cash-generating capacity of every single circuit board. Only those who can turn the long cycle of intelligentization into compound returns deserve the long-term trust of the capital market. Clad in the halo of an automotive PCB leader, yet three years of revenue growth without profit growth According to GMTEight, Dynamic Electronics was founded in 2015 and is a globally renowned high-end printed circuit board (PCB) manufacturer, as well as one of the world's leading automotive PCB suppliers. The company is committed to the research and development, production, and commercialization of a series of high-reliability, high-complexity PCB products, including double-sided boards, multilayer boards, and high-density interconnect (HDI) boards. These products are the physical interconnection foundation of almost all electronic systems and can be applied to automotive electronics, data storage, communications, and AI servers. Based on 2025 revenue, the company is the world's eighth-largest automotive PCB supplier, the world's largest automotive HDI board supplier, and the world's third-largest AI data storage PCB and memory module PCB supplier. But when opening Dynamic Electronics' prospectus, it is not difficult to find that this manufacturing enterprise deeply engaged in the automotive sector is caught in an obvious situation of revenue growth without profit growth. From 2023 to 2025, the company's revenue grew from 3.656 billion yuan to 4.752 billion yuan, maintaining steady growth for three years; net profit attributable to shareholders rose from 266 million yuan to 276 million yuan, then fell back to 231 million yuan, down 16.24% year-on-year in 2025. Entering the first half of 2026, revenue further climbed to 2.912 billion yuan, a sharp year-on-year increase of 33.29%, yet it recorded a phased loss of 191 million yuan. The market's first reaction is easily "deterioration of fundamentals," but after breaking down the structure, it can be found that Dynamic Electronics' short-term net profit fluctuation is mainly caused by a combination of multiple one-off and strategic factors, and cannot simply be equated with a loss of momentum in the main business. The first variable is the pain of capacity ramp-up at the Thailand factory. As the company's most important global pillar, the Thailand base is positioned to target the overseas automotive electronics and AI server high-end board markets, with the aim of avoiding trade barriers and meeting the localized supply requirements of leading overseas customers. But a new plant must go through a long cycle from civil construction, equipment debugging, process replication, to personnel integration; in the initial stage of production, insufficient capacity utilization and high unit depreciation and manufacturing expenses directly bring phased loss pressure. Coupled with significant exchange losses in the first half of 2026, the impact on the profit side was further amplified. Second is the proactive choice of products and capital expenditure: the company is continuously tilting resources toward high-end HDI and high-speed multilayer boards, with R&D, equipment investment, and certification and sample-making costs rising simultaneously; upstream bulk raw materials such as copper foil and copper-clad laminates are in cyclical fluctuation, continuously disturbing gross margin. Under the superposition of multiple forces, Dynamic Electronics' profit performance clearly constitutes a combination of "reversible factor (exchange rate) + phased factor (Thailand ramp-up) + structural factor (pressure on automotive board gross margin)." The first two will fade over time, while the third requires a longer period of technological upgrading and product mix adjustment to hedge. Along with the loss of profit momentum, Dynamic Electronics' funding liquidity pressure has also visibly increased: as of the first half of 2026, the company's cash and cash equivalents at period-end were approximately 1.093 billion yuan, net current assets were 32 million yuan, and the asset-liability ratio was as high as 75.6%. From the above performances, it is not difficult to see that Dynamic Electronics has not lost its growth foundation: it ranks first globally in automotive HDI and third globally in AI data storage/memory module PCB, revenue is still growing rapidly, and the Thailand base also points to overseas high-end markets. But capacity ramp-up, exchange losses, raw material fluctuations, and pressure on automotive board gross margin, combined with a 75.6% asset-liability ratio and only 32 million yuan in net current assets, have put short-term pressure on profitability and liquidity. Whether its growth pains can be resolved with capacity release and technological upgrading will determine when the company moves from "revenue growth" to "profit growth." The old engine is stalling, the new engine is accelerating If the income statement tells the pain of the "old story," then changes in the revenue structure tell the starting point of the "new story." In the first half of 2026, revenue in the data storage field surged 133.5% year-on-year, and the revenue share of communications and AI servers increased from 4.3% in 2023 to 10.0%. The revenue share of HDI boards jumped from 23.4% in 2023 to 43.8%. Behind these numbers is a clear logic: Dynamic Electronics is shifting its product focus from low-end automotive boards to high-end HDI and AI server boards. The rationality of this migration path needs to be understood within the coordinate system of the entire PCB industry. According to Frost & Sullivan data, the global PCB market's compound growth rate from 2021 to 2025 was only 2.8%, but starting from 2026, the growth curve clearly steepens. Looking ahead from 2026 to 2030, the global PCB market size is expected to grow from USD 102.0 billion to USD 144.6 billion, with the compound annual growth rate rising to 9.1%. By product type, HDI boards are the fastest-growing category, with a compound annual growth rate of 9.4% from 2021 to 2025, and market size increasing from USD 11.3 billion to USD 16.2 billion. The core DRIVE comes from demand for high-density interconnection in communications and AI servers and automotive electronics; multilayer boards had a compound annual growth rate of 3.6%; packaging substrates had a compound annual growth rate of 2.3%. Single/double-sided boards and flexible boards had compound annual growth rates of 3.2% and 0.9%, respectively, during the same period. It is expected that by 2030, HDI boards and multilayer boards will grow steadily at compound annual growth rates of 10.8% and 9.8% to USD 30.0 billion and USD 58.6 billion, respectively. It can be seen that, whether from the perspective of market growth rate or market capacity, Dynamic Electronics' shift in product focus from low-end automotive boards to high-end HDI and AI server boards is undoubtedly a forward-looking move. Of course, Dynamic Electronics' positioning in the above tracks also has a certain technological foundation. The company has completed technical certification for 50-layer AI server PCBs, has processing capability of up to 60 layers, and 7+N+7 multi-order HDI has passed mass production verification. Among domestic PCB enterprises, those with mass production capability for multi-order HDI and any-layer interconnect HDI are few and far between. The mSAP advanced process production line at the Thailand P5A plant is planned to be completed and put into production in the fourth quarter of 2026 and begin customer verification. However, the supply bottleneck for AI server PCBs is not in nominal capacity, but in "effective capacity." The production process for PCBs above 30 layers, M9-grade CCL, and high-end HDI is more complex, yield is lower than ordinary products, newly added equipment needs debugging, and customer certification takes time. This means that once Dynamic Electronics is the first to complete technical certification and capacity ramp-up, it will enjoy a certain first-mover dividend. It can be seen that Dynamic Electronics' migration toward high-end HDI and AI servers follows the broader industry trend, and its technology and revenue structure already show first-mover potential, but effective capacity, yield, and customer certification still need time to materialize. Conclusion As the "mother of electronic products," the PCB industry is welcoming structural growth opportunities driven by AI computing infrastructure and automotive intelligentization, with high-end products growing significantly faster than traditional categories. Dynamic Electronics' active positioning in the product layout of high-end HDI and AI servers is obviously a forward-looking move that follows the broader industry trend. However, it should be noted that as more and more manufacturers bet resources on automotive and AI server directions, in the next 23 years, the high value-added segment will also gradually face pressure from intensifying competition. Therefore, it is not difficult to see that Dynamic Electronics' Hong Kong listing is at the crossroads of "short-term pain and long-term growth." In the short term, the company faces the financial dilemma of "revenue growth without profit growth"; in the long term, the company is positioned in the two high-growth tracks of AI computing power and automotive electronics, betting on the "long cycle of intelligentization," with deep technical barriers, a clear capacity expansion strategy, and growth potential to ride through industry cycles. And this Hong Kong listing is not a simple financing action, but a key part of its globalization strategy and capacity expansion strategy. Through an H-share listing, the company can optimize its capital structure, support its high-end capacity expansion, and enhance its international influence.