Shengyi Technology Co Ltd

Shengyi Technology released its 2026 interim report, with net profit attributable to the parent company of 3.287 billion yuan, up 130.42% from the same period last year. Total operating revenue was 19.026 billion yuan, up 50.05% year-on-year, marking three consecutive years of growth. Net cash inflow from operating activities was 2.983 billion yuan, up 53.44% year-on-year. The company's latest gross margin was 30.69%, return on equity was 17.77%, and diluted earnings per share was 1.36 yuan.

On the evening of August 14, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued announcements covering major matters, half-year results, shareholding changes, and large orders. Keda Manufacturing terminated its purchase of a 51.55 percent stake in Tefu International. Zhongheng Electric's controlling shareholder, Zhongheng Technology Investment, received a capital increase of 4.1 billion yuan from CATL, subscribing to 14.4118 million yuan of new registered capital, and the two sides signed a strategic cooperation agreement. Huashi Technology plans to buy a 30 percent stake in Aoxing Technology for 300 million yuan. Haitong Development's wholly owned subsidiary plans to invest no more than 600 million yuan to build two 62,000 deadweight ton multipurpose heavy-lift vessels. Zhiyang Innovation plans to raise no more than 904 million yuan through a private placement. Fuleide plans to raise no more than 1.176 billion yuan through convertible bonds. In half-year results, Kweichow Moutai posted first-half net profit of 44.517 billion yuan, down 1.95 percent year on year. Satellite Chemical posted net profit of 6.226 billion yuan, up 126.94 percent. Shengyi Technology posted net profit of 3.287 billion yuan, up 130.42 percent. Ping An Bank posted net profit of 25.696 billion yuan, up 3.3 percent, and plans to pay a dividend of 2.49 yuan per 10 shares. China Communications Construction signed new contracts worth 902.949 billion yuan in the first half, down 8.89 percent year on year. In addition, Fuwei Shares received a seat project nomination from a joint-venture brand customer, with an estimated total life-cycle sales value of 2.86 billion yuan. A subsidiary of Shaanxi Construction Engineering won the bid for a 1.156 billion yuan Yunjing Intelligent Computing Center project. A subsidiary of Zhejiang Construction Investment won the bid for a project worth 2.497 billion Hong Kong dollars.

Goldman Sachs has sharply raised its market size forecasts for artificial intelligence server-related printed circuit boards and copper clad laminates in its latest industry report. The bank now expects the global AI server PCB market to reach 37.5 billion dollars in 2027, up 38 percent from its previous forecast, and to further grow to 84 billion dollars in 2028. The CCL market is projected to hit 22.1 billion dollars in 2027, an 18 percent increase, and could rise to 48 billion dollars in 2028. This implies compound annual growth rates of 148 percent and 161 percent for the AI server PCB and CCL markets respectively from 2026 to 2028. Goldman Sachs noted that this growth is driven not only by higher server shipments, but also by factors such as increased PCB layer counts, greater penetration of high-end HDI, upgrades in CCL materials, and higher PCB usage within server racks. Following the news, PCB-related stocks in China's A-share market saw renewed activity, with Baoding Technology hitting the daily limit for the fifth time in six sessions, Jingwang Electronics locking in its second consecutive daily limit, and Yihao New Materials, Shenghong Technology, Shengyi Technology, and Wus Printed Circuit also advancing.

On August 4, the A-share PCB concept sector rallied across the board. Zhongjing Electronics hit its daily limit up, while Dongshan Precision, Shengyi Technology, Shennan Circuits, Dongcai Technology, and Tongguan Copper Foil all rose more than 5%. Newly listed Jialichuang surged over 177% intraday on its debut. The rally was directly catalyzed by rising upstream substrate costs. A Citi research report shows that electronic fabric prices recorded their largest single-month increase this year in August, with average prices for the 1080, 2116, and 7628 series rising 17% to 18%, and cumulative gains this year reaching 118% to 165%. AI power supplies are squeezing traditional supply, and costs are being passed on to copper-clad laminates. The spot price including tax for laminates from industry leader Kingboard Laminates may rise another 10% to 15% in August, with the year-to-date average price nearly doubling. China Securities believes that, driven by AI, the global PCB industry is entering a new upward cycle. In 2025, the PCB market space for GPU and ASIC servers has already exceeded 40 billion yuan, and it will surpass 90 billion yuan in 2026, doubling the growth rate. However, capacity expansion is constrained by multiple factors, and the supply-demand balance is unlikely to reverse in the short term.

The Shanghai Composite Index closed higher today at 3,858.25 points, up 44.05 points or 1.15 percent, supported by buying in technology and chip stocks. Leading the gains, Shengyi Technology surged 6.13 percent, Eoptolink Technology rose 3.15 percent, Zhongji Innolight added 2.91 percent, NAURA Technology gained 1.72 percent, and Cambricon Technologies advanced 1.31 percent. The uptick helped offset negative sentiment from China's June industrial profits report, which showed growth of just 15.1 percent year-on-year, slowing from May's 21.1 percent expansion and marking the slowest growth rate since the start of the year. Industrial profits for the first six months rose 18.7 percent year-on-year, edging down slightly from the 18.8 percent increase in the first five months.

A total of 167 listed companies in Guangdong have disclosed their earnings forecasts for the first half of 2026, accounting for 36% of all listed companies in the region. Nearly half of these companies are projecting rapid growth, over 30% are maintaining profitability with year-on-year net profit growth exceeding 50%, and 20 companies are turning losses into profits. Based on the average of the upper and lower limits of the pre-disclosed net profits, the combined net profit of the 167 companies is approximately 42.87 billion yuan. The total net profit of companies forecasting a profit amounts to 58.09 billion yuan. Fifteen companies expect to earn over 1 billion yuan, with GF Securities anticipating a profit of 11 billion to 12 billion yuan. The electronics sector has become the engine of earnings growth for manufacturing companies. The 25 pre-disclosed electronics companies report a combined net profit of about 12.49 billion yuan. TCL Technology forecasts a profit of 3.7 billion to 3.92 billion yuan, and Shengyi Technology expects a profit of approximately 3.1 billion to 3.3 billion yuan. The lithium battery industry has seen a significant recovery. EVE Energy is forecasting a profit of 3.13 billion to 3.37 billion yuan, a year-on-year increase of about 95% to 110%. Tinci Materials expects a profit of 2.7 billion to 3 billion yuan, with year-on-year growth exceeding nine times.

Morgan Stanley All People Innovation Mixed Fund A disclosed its second quarter 2026 report, with a second quarter profit of RMB 34.12 million and a net asset value growth rate of 90.29%. As of the end of the second quarter, the fund size was RMB 63.04 million. Fund manager Li Ziyang stated that the fund continues to focus on investing in the technology industry chain, and is bullish on the explosive demand for computing power driven by AI Coding and Agents. The prosperity of both overseas and domestic computing power industry chains continues to exceed expectations. For domestic computing power, the shipment expectations for chips such as Ascend in 2026 have been significantly revised upward. As of July 17, the fund's one-year adjusted unit NAV growth rate was 59.57%, and the maximum drawdown over the past three years was 47.89%. The top ten heavy holdings at the end of the second quarter included Konfoong Materials International, Shengyi Technology, and Cambricon.

A 22V Research report finds the United States relies on Chinese companies for almost 30% of its imports of AI-related products, with China playing a central role in data center supply chain components such as energy storage, transformers, critical minerals, and chemicals. The report notes that AI-related exports have accounted for about half the growth in China's overall exports this year, and many of the companies are listed in Shenzhen. Among the 10 biggest AI supply chain companies by market cap in the CSI 300 index, nine had at least doubled in the 12 months through May, including printed circuit board makers Victory Giant, Dongshan Precision, and Shengyi Technology, as well as multilayer ceramic capacitor manufacturer Sanhuan Group. On the server side, Foxconn Industrial Internet and Sungrow Power were also on the list, while optical and networking names InnoLight, Eoptolink, and TFC were highlighted by JPMorgan analysts for their role in high-speed data center links. Recent share price gains have pushed InnoLight and Foxconn Industrial Internet into the 1 trillion yuan market cap range.