On the evening of April 28, Shenghong Technology (300476.SZ) released its first-quarter report for 2026. Against the backdrop of continued strong demand for AI servers, the company delivered a report card with growth exceeding expectations.
Key Financial Data
Revenue: 5.519 billion yuan, +27.99% year-on-year
Net profit attributable to shareholders: 1.288 billion yuan, +39.95% year-on-year
Adjusted net profit: 1.265 billion yuan (estimated), +40%+ year-on-year
EPS: 1.48 yuan
Gross margin: approximately 36.8% (industry-leading)
Performance Highlights
Significant contribution from AI business: Strong demand for high-end multilayer boards and HDI products; AI-related PCB orders are full, becoming the core engine of profit growth
Product structure optimization: The proportion of high value-added products has increased, driving improved profitability quality
Orderly capacity release: The new plant in Huizhou is ramping up production smoothly, meeting incremental demand from major customers
High-quality customer structure: Deeply tied to global leading cloud providers and AI chip giants
The 40% profit growth far exceeds the 28% revenue growth, indicating the company's product structure is rapidly shifting towards the high-end. The explosive growth in demand for high-layer-count, high-density PCBs from AI servers, coupled with Shenghong's high technical barriers and favorable competitive landscape in this area, grants it pricing power. Furthermore, the gross margin remaining at a high level of 36%+ also confirms its technological moat.
Although the first-quarter performance was strong, two points need to be monitored:
Sustainability of AI demand: Current AI capital expenditure remains high, but if growth slows in the second half, it may affect order visibility.
Capacity utilization: Depreciation pressure increases after the new plant's operation; insufficient capacity utilization may erode profits.
Overall, Shenghong Technology is successfully transforming from a traditional PCB manufacturer into a "core AI computing power supplier," and its valuation logic is also being reshaped. In the short term, Q1 is just the beginning, with high growth expected to be maintained throughout the year.
Risk warnings: AI capital expenditure falling short of expectations; intensifying industry competition; raw material price fluctuations; exchange rate risks.
$VGT(02476.HK)
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