CICC: Initiates DeepBlue Technology with an "outperform" rating, benefiting from the growth in demand for AI.

The research report of Zhongjin Company pointed out that Shennan Circuits is the leading domestic PCB company, ranking fifth in global PCB manufacturers by revenue in the second quarter of 2024 according to Prismark. The PCB industry benefits from factors such as AI demand driving growth, and the cycle continues to rise. The company's downstream distribution is relatively balanced. In addition to traditional businesses, the company's AI business also continues to grow as a result of the increasing demand for AI computing power both domestically and internationally. Products such as AI servers, switches, and optical modules continue to increase in volume, contributing to the continuous improvement of performance. The current stock price corresponds to a P/E ratio of 26 times in 2026. Based on a P/E ratio of 30 times in 2026, the company's target price is 140.64 yuan, which represents a 14% increase from the current stock price. The company is rated as "outperforming the industry" for the first time.