Suzhou Dongshan Precision Manufacturing (02384) Debut: Favored by Investors, "AI PCB + Optical Modules" Accelerate Valuation Reshaping

The international offering was 3.17 times subscribed, with a cluster of well-known investment institutions including JPMorgan Asset Management (Asia Pacific) Limited, Ruiyuan Fund, Orient Asset Management (Hong Kong) Limited, and Tianhong Asset Management Co., Ltd. participating in the subscription and becoming cornerstone investors. Suzhou Dongshan Precision Manufacturing (02384), a leader in "AI PCB + optical modules," has officially listed on the Hong Kong Stock Exchange. It is understood that Suzhou Dongshan Precision Manufacturing (02384) officially listed on the Hong Kong Stock Exchange on October 28. With its high-growth performance, strong industry growth prospects, and investment appeal as the first stock in "AI PCB + optical modules," it has become a focus of market allocation. Moreover, the company's offering price was HK$86.8, with an AH premium of 43.9%, and the undervaluation of its H-shares attracted long-term value investors. As a scarce integrated player in "AI PCB + optical modules" and an industry leader with globalized operations, the company's H-share listing is undoubtedly an important step toward globalizing its capital. Institutional investors recognize long-term value With this listing on the Hong Kong stock market, Suzhou Dongshan Precision Manufacturing has achieved dual A+H listing status, continuously solidifying its leadership position in the global market through capital and business globalization strategies, while also advancing its two core tracks of "AI PCB + optical modules," bringing sustainability and highly certain expectations for performance growth. Suzhou Dongshan Precision Manufacturing's Hong Kong listing received active participation from institutional investors, reflecting long-term capital's recognition of the company's industry position and future growth potential. According to the prospectus, the company's global offering comprised approximately 114 million H-shares, with the final offering price set at HK$86.80 per share, raising approximately HK$9.876 billion. Notably, the offering successfully introduced 20 cornerstone investors, with total subscription amounts of approximately US$680 million, which, based on the offering size disclosed during the offering period, exceeds 50% of the total number of basic offering shares under the global offering, assuming no exercise of the offer size adjustment option and over-allotment option. The relatively high proportion of cornerstone investor subscriptions highlights institutional capital's attention to Suzhou Dongshan Precision Manufacturing's investment value. Especially against the backdrop of Hong Kong market investors placing greater emphasis on corporate fundamentals, earnings quality, and long-term growth certainty, the active participation of institutional investors reflects long-term capital's optimism about the company's existing industrial foundation and future business growth space. It is reported that Suzhou Dongshan Precision Manufacturing has four major businesses: PCB, precision components, touch panels and LCD panels, and optical modules, with diversified drivers fueling high performance growth. The PCB business remains the foundation, maintaining revenue growth in the first half of 2026 and contributing 45.1%, with product mix optimization and a continuously rising share of AI PCB; precision components benefited from substantial growth in automotive industry demand, contributing 23.7% of revenue; and the optical module business is a new growth engine, bringing significant performance contribution after the consolidation of Source Photonics in 2025, with first-half revenue of RMB5.351 billion, contributing 19.2% of revenue. Driven by diversified businesses, the company's revenue has maintained growth every year, with performance growth accelerating in 2026. First-half revenue was RMB27.798 billion, up 63.95% year-on-year, net profit was RMB2.985 billion, up 293.5% year-on-year, net margin rose to 10.7%, and annualized ROE reached 24.5%. Moreover, the company has achieved high-quality performance growth, with operating cash flow remaining in net inflow in prior periods. From 2023 to the first half of 2026, net inflows were RMB5.041 billion, RMB4.978 billion, RMB4.902 billion, and RMB2.269 billion, respectively. After deducting net outflows from investing and financing activities, there was still surplus cash flow. In the first half of 2026, the net increase in cash was RMB1.041 billion. As of June, the company's cash and cash equivalents reached RMB6.948 billion. Optical modules become the core future highlight It is worth noting that Suzhou Dongshan Precision Manufacturing has technological leadership and scale advantages in PCB and optical modules, which are also the most core highlights of the company's H-share listing. In the PCB field, the company possesses professional technology for high-layer PCBs with up to 78 layers and high-order HDI. According to CIC, based on 2025 revenue, it ranks third among global PCB suppliers and second among global flexible board suppliers. In the optical module field, its subsidiary Source Photonics is one of only three companies globally with independent design and manufacturing capabilities for high-speed optical chips and optical modules, with dual technology route reserves in EML and silicon photonics. According to CIC, based on 2025 revenue, the company ranks seventh in the global optical module market. Of the net proceeds from this offering, approximately 64.5% is expected to be used for building new facilities and upgrading existing production facilities and lines, including capacity expansion for high-speed EML chips and optical modules at its mainland China production facilities, and building a new production facility in Zhuhai for Multek focused on high-end PCB; approximately 20.0% is expected to be used for potential strategic investments or acquisitions to consolidate the company's technological and market leadership in its core businesses. Suzhou Dongshan Precision Manufacturing is allocating most of the funds to capacity expansion in high-end PCB, high-speed EML chips, and optical modules, demonstrating the weight of the two major businesses, "AI PCB + optical modules," in the company's development strategy. In fact, in addition to business advantages, the company may also see demand expectations arising from the development prospects of the two major tracks: First, large-scale AI infrastructure is still accelerating. According to forecasts from multiple institutions, the total capital expenditure of the world's top nine CSPs in 2026 will exceed US$957 billion, up 106% year-on-year, and will exceed US$1.5 trillion in 2027. JPMorgan expects total global intelligent computing center investment to reach US$5.5 trillion by 2030. Second, industry demand growth forecasts: according to CIC, for example, the edge AI device PCB industry and the data center PCB industry have compound growth rates of 64.2% and 21.5%, respectively, over the past five years; the global market size compound growth rate also reaches 21.5%. Overall, investors favor Suzhou Dongshan Precision Manufacturing for perhaps three main reasons: first, a diversified business structure drives performance that is in an accelerating growth cycle; second, unlike other high-growth targets in the AI track, the company achieves high-quality growth not at the expense of profit and cash flow, making it sustainable; third, "AI PCB + optical modules" brings high growth expectations, and under its positioning advantage, the core investment of proceeds and industry prospects both bring valuation appeal to the company. In addition, most investment banks are also optimistic about the company. Among them, a Shanghai Securities research report believes that major overseas cloud service providers will continue to increase investment in computing infrastructure, with expansion pace continuing to accelerate, and AI computing power will drive the company's "optical modules + AI PCB" from capability building toward value release. An Orient research report states that the company's integrated layout of optical chips + optical modules accelerates breakthroughs in high-end products and capacity expansion, and is expected to fully benefit from the growth of the AI PCB business. Suzhou Dongshan Precision Manufacturing's current H-share valuation is not high, below the market's pricing of more than 10x for high-growth AI tracks, and the AH premium is relatively high, offering long-term allocation value.