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Shares of Shengyi Electronics increased following the announcement that its net profit more than quintupled in the first half of the year. The Chinese printed circuit board manufacturer closed at CNY 56.36 (approximately USD 7.85), marking a 2.7% gain on the Shanghai Stock Exchange, after earlier climbing by as much as 5.6%.
The company’s net income soared by 452%, reaching CNY 531 million (about USD 74 million) for the six months ending June 30, compared to the previous year. This surge was primarily driven by rising demand for PCBs in the artificial intelligence server and high-performance computing sectors. Revenue also experienced a significant increase, rising by 91% to CNY 3.8 billion (around USD 525 million).
The company has announced plans to distribute cash dividends of CNY 3 (roughly USD 0.42) per 10 shares, including taxes, totaling CNY 247 million (approximately USD 34.4 million). This payout represents about 47% of its first-half net profit.
AI servers have emerged as the primary application market for Shengyi Electronics’ PCBs, with the segment’s sales share reaching new heights, although specific figures were not provided. According to the 2024 earnings report, server PCB sales made up nearly 49% of the total last year, marking a substantial increase from the previous year and signaling a significant boost in market share.
On August 15, the company announced a capacity expansion plan, aiming to establish a new production line in Ji’an, China’s eastern Jiangxi province. The facility will produce high-end PCBs with an annual capacity of 700,000 square meters to meet increasing demands from servers, multilayer network communications, and AI computing.
The project will be executed in two phases, each with an annual capacity of 350,000 square meters. The first phase is slated to begin trial production next year, with the second phase expected to start in 2027.
This expansion is intended to streamline resource allocation, optimize capacity layout, better respond to market needs, and improve profitability and competitiveness. The company estimates an after-tax dynamic payback period of approximately 8.4 years for the project.
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