The trillion-dollar giant is bound for Hong Kong: What has changed in Shenghong Technology's profit model?

After surpassing a market value of 250 billion yuan in the A-share market, Shenghong Technology has chosen to make another push to the Hong Kong Stock Exchange. This is yet another capital deployment centered around the global AI computing infrastructure reconstruction.

On February 24, the Hong Kong Stock Exchange disclosed that Shenghong Technology (Huizhou) Co., Ltd. has submitted an application for listing on the Main Board, with JPMorgan Chase, CITIC Securities International, and GF Securities serving as joint sponsors. This marks Shenghong Technology’s reapplication after its initial attempt in August 2025 failed. Once approved, Shenghong Technology will form a dual “A+H” capital platform structure.

Against the backdrop of a new wave of capital expenditure in AI servers and data centers, this traditional PCB manufacturer is being redefined.

Profitability is accelerating, with annual net profit increasing 2.6 to 2.95 times

Shenghong Technology’s latest financial data is phenomenal within the PCB industry.

The prospectus shows that from 2022 to 2024, revenue steadily grew from 7.885 billion to 10.731 billion yuan, demonstrating steady but not spectacular growth. The real transformation occurred in 2025. In just the first three quarters, the company’s revenue reached 14.117 billion yuan, an 83% year-over-year increase; net profit attributable to shareholders was 3.245 billion yuan, more than tripling year-over-year.

Also noteworthy is the change in gross margin, which rose from 18.1% in 2022 to 22.7% in 2024, and then sharply jumped to 35.9% in the first three quarters of 2025.

These figures reveal a core fact: Shenghong Technology has completely broken free from the traditional PCB manufacturer’s reliance on “thin margins and high volume” or “price competition.” The explosive profit growth far exceeds revenue growth, and the surge in gross margin points to a fundamental optimization of product structure.

Prior to this listing, Shenghong Technology released its latest annual performance forecast, estimating that in 2025, net profit attributable to shareholders will grow by 260-295% to between 4.16 and 4.56 billion yuan. The main driver is the explosive demand for high-end PCBs in AI servers and data centers.

Breaking down its revenue composition, in the first nine months of 2025, ML PCBs (high-layer count boards) contributed 45.1%, while HDI boards (high-density interconnect boards) accounted for 37.4%, together making up over 82%. Among these, high-end HDI and 100+ layer high-layer count boards are core needs for AI server compute cards, UBB motherboards, switches, and other equipment.

These products have extremely high technical barriers, long certification cycles, and thus enjoy high bargaining power. As stated in the performance forecast, “Multiple high-end products have achieved large-scale mass production, driving product structure upgrades toward high value and high technical complexity, with a significant increase in high-end product proportion.”

This structural advantage has also enabled Shenghong Technology to “overtake” peers in high-end HDI performance. Simple statistics show that traditional PCB giants like Pengding Holdings and Dongshan Precision still mainly focus on consumer electronics FPCs or flexible boards, while companies focusing on communication boards like Shentian Electric and Shennan Circuit also benefit from AI. However, in terms of HDI capacity scale and revenue share, Shenghong Technology has gained an edge with its first-mover advantage.

The prospectus discloses that, based on revenue scale of high-value AI and high-performance compute PCBs, its global market share was only 1.7% in 2024, ranking seventh; but by the first half of 2025, it had become the global leader. This “local high ground” strategy allows it to capture high-margin profits amid the AI wave.

Seizing the HDI boom driven by AI server breakthroughs

A deeper look reveals that Shenghong Technology’s rise perfectly aligns with multiple technological iterations in AI servers.

As GPU computing power increases exponentially, the core demand for AI server PCBs has shifted from simple “connectivity” to “signal integrity under high-speed transmission.” Traditional multilayer boards can no longer meet the low-latency, low-loss transmission needs of massive data between AI chips and memory. High-end HDI boards, with finer line widths and spacings, smaller vias, and higher wiring density, have become the preferred choice for AI acceleration cards.

Shenghong Technology’s technological positioning is forward-looking. The prospectus shows it is among the first in the world to achieve large-scale production of 6-layer, 24-layer HDI products, and has mastered 8-layer, 28-layer HDI and 16-layer arbitrary-layer (Any-layer) HDI technology, with the capability to manufacture 100+ layer high-layer count PCBs.

Currently, Shenghong is advancing R&D and certification for 10-layer, 30-layer HDI. This technological reserve enables it to deeply participate in the pre-research of new products for top international clients, tying design to future orders.

Demand is also exploding. According to Frost & Sullivan, the global high-end HDI PCB market in AI and high-performance computing applications grew at a CAGR of 39.8% from 2020 to 2024, and is expected to reach $3.2 billion by 2029, with a CAGR of 13.7%.

The value of a single AI server PCB is several times, or even over ten times, that of traditional servers, and Shenghong Technology is positioned at this high-value core.

In response to surging orders, capacity “arms races” are underway. After raising 1.9 billion yuan through A-share private placement, Shenghong’s Huizhou plant phase four has been gradually commissioned, with phases ten and eleven progressing smoothly. Overseas expansion is a key step: the upgrade of Building A1 at the Thailand factory was completed in March 2025, with phase two high-end capacity entering production validation; construction of Building A2 and the Vietnam factory is also underway.

This domestic and overseas triad layout not only meets the supply chain security needs of major overseas clients but also opens up the company’s global capacity ceiling. The company revealed in surveys that “orders on hand are sufficient, and capacity utilization remains healthy,” with expansion speed leading the industry, laying the foundation for future growth.

This explains why Shenghong Technology, with a market value exceeding 250 billion yuan, is still determined to list in Hong Kong.

Strategic significance of Hong Kong IPO: navigating cycles + globalization 2.0

On the surface, it’s about building an “A+H” financing platform, but deeper down, there are three strategic considerations behind this move.

First, to hedge geopolitical risks and deepen globalization 2.0. The PCB industry chain is highly globalized, especially in AI computing power, where core clients are mostly international giants. Relying solely on the A-share market complicates cross-border M&A, international financing, and foreign exchange settlement. Shenghong recently completed the acquisition of SunPower Malaysia (SPMY), integrating it as an FPC/PCB manufacturing base.

Listing in Hong Kong means access to a more international capital platform, facilitating overseas M&A, equity incentives, and foreign exchange management—truly transitioning from “product going abroad” to “capital going abroad.”

Second, to reserve “ammunition” for the next technological iteration. The PCB industry’s technological race has no end. While the market is still digesting 8-layer HDI, Shenghong has already targeted 10-layer, 30-layer HDI; while focusing on AI servers, it has begun supplying PCBs for humanoid robots.

All these cutting-edge R&D and capital expenditures require huge funding. The 1.9 billion yuan raised in 2025 will mainly expand existing capacity, while H-share financing can support longer-term R&D, next-generation technologies, and potential overseas high-end capacity integration.

Third, to enhance brand reputation and international pricing power. Despite strong performance, Chinese PCB companies still have low international recognition. Listing in Hong Kong means entering the global capital spotlight, subjecting the company to stricter international standards, which can attract long-term international capital, optimize shareholder structure, and raise valuation levels. It’s also a “public declaration” of industry status—being a leader in global AI compute PCB, deserving of valuation on an international stage.

Of course, opportunities come with risks. “A+H” entails stricter disclosure and regulatory requirements, as well as exchange rate risks. More importantly, the current PCB sector’s hotness is partly driven by AI-related valuation premiums.

Shenghong’s secondary listing coincides with Japanese material supplier Resonac’s announcement of CCL price hikes, and the PCB sector in A-shares is once again active. The market’s enthusiasm confirms the sector’s prosperity, but Shenghong’s story has long transcended industry beta. Its explosive revenue structure and soaring gross margins prove it has evolved into a core player in AI computing infrastructure.