HK Stock Market Move | PCB concept stocks widened their declines in the afternoon session; the industry's profit structure in the third-quarter reports has already diverged markedly; the market is concerned about slowing growth in end-user demand.

PCB concept stocks widened their declines in the afternoon session. As of press time, Shenzhen Kinwong Electronic (03228) fell 9.25% to HK$48.46; KB LAMINATES (01888) fell 8.32% to HK$33.26; DELTON (01989) fell 7.60% to HK$56.5; Victory Giant Technology (02476) fell 5.92% to HK$116.1. On the news front, as third-quarter 2026 earnings reports are gradually disclosed, net profit at upstream PCB substrate manufacturers has surged, while downstream board makers have fallen into the dilemma of "revenue growth without profit growth." Analysts pointed out that the profit structure of the PCB industry has already diverged markedly. Construction cycles for high-end fiberglass cloth and high-end copper-clad laminate projects are long and capacity expansion is difficult, making the supply-demand gap hard to bridge in the short term, and earnings elasticity is significantly higher than that of midstream PCB manufacturing. Companies in low-end segments lack high-end capacity layouts, and the industry may remain in a state of overcapacity and price involution for a long time. It is worth noting that the third-quarter reports of some leading domestic and overseas technology companies showed quarter-on-quarter declines in performance or fourth-quarter guidance that fell short of expectations, driving a sharp pullback across the domestic PCB supply chain. The market is concerned that once the growth of end-user demand such as AI cloud services and large-model training slows, a large number of planned high-end capacities will be released in concentrated fashion, and a supply-demand reversal may once again trigger a price war, suppressing profitability across the entire industry.