Changzhou Aohong Electronics Co. Ltd.

On September 15, the PCB sector continued its strong momentum. Huazheng New Material surged to the daily limit within one minute of the open, briefly broke the board, then quickly sealed the limit again, notching its third board in seven days. As of the midday close, the stock stood at 251.57 yuan, with turnover exceeding 2.2 billion yuan and a total market value of 39.4 billion yuan. It has risen more than 400% so far this year. Huazheng New Material's semi-annual report showed that in the first half of 2026, the company achieved operating revenue of 2.96 billion yuan, up 41.28% year on year, while net profit attributable to shareholders of the listed company reached 173 million yuan, up 305.28% year on year. The company said in its announcement that no major events likely to have a significant impact on its share price had occurred. On the same day, Aohong Electronics logged its third consecutive board, while Honghe Technology, Ouke Technology, Nuode New Materials, and Wote Advanced Materials were among multiple stocks hitting the daily limit. Chaohua Electronics briefly touched the limit, recording its fifth board in seven days. On the evening of September 13, Chaohua Electronics announced that market rumors claiming its high-frequency boards had passed Nvidia certification were untrue. The company currently supplies no products to Nvidia, and its 800G and 1.6T optical module supporting PCBs remain in the research and follow-up stage, with uncertainty remaining. It has not yet achieved large-scale supply or generated corresponding revenue. In terms of news, the Ministry of Industry and Information Technology and the National Development and Reform Commission issued the 15th Five-Year Plan for the development of the electronic information manufacturing industry, proposing breakthroughs in on-device intelligent computing chips and high-end memory chips, as well as the development of new architectures such as near-memory computing and processing-in-memory. Guosen Securities said that as AI-driven R&D automation accelerates, the simultaneous expansion of training and research inference will continue to raise the ceiling for computing power demand. Within the AI industry chain, investors may focus on computing chips, HBM, memory, and advanced packaging. A research report from Zheshang Securities showed that as upstream material prices for PCBs continue to rise, price increases are beginning to pass through to some PCB categories, with the effect expected to become gradually visible from the third quarter of 2026.

Aohong Electronics released its 2026 interim report on August 27. Leveraging its core printed circuit board business, the company benefited from expansion into high-growth sectors such as server power supplies and embodied intelligence, as well as capacity ramp-up at its Thailand base. Revenue continued to grow during the reporting period, but net profit attributable to shareholders declined due to a sharp increase in exchange losses caused by RMB appreciation, presenting a pattern of rising revenue without rising profit. Financial data show that during the reporting period, the company achieved operating revenue of 773 million yuan, up 14.74 percent year on year; net profit attributable to shareholders was 66 million yuan, down 17.89 percent year on year; and non-GAAP net profit was 48 million yuan, down 38.73 percent year on year. Net cash flow from operating activities was 132 million yuan, down 23.86 percent year on year. The divergence between revenue and profit trends was mainly because exchange gains and losses within financial expenses swung from a gain in the same period last year to a large loss in the current period. Excluding this factor, core business operations maintained steady growth. The company's business covers single-sided and double-sided boards, multilayer boards, and HDI boards, which are widely used in automotive electronics, new energy power supplies, smart homes, and other fields. During the reporting period, the company focused on server power supplies, energy storage power supplies, and embodied intelligence, with related products achieving large-scale production and stable supply, driving a steady increase in order volume. At the same time, an HDI technology upgrade project with a total investment of 135 million yuan was completed and put into production, filling gaps in high-end product manufacturing processes. The overseas production base in Thailand completed installation and commissioning of core equipment and entered mass production, helping to shorten delivery cycles and reduce cross-border logistics costs. Although demand in core business segments remained strong, prices of raw materials such as copper-clad laminates and copper foil rose sharply in the first half of the year, and cost pass-through to downstream customers lagged. Combined with exchange rate fluctuations, this squeezed profit margins. Exchange losses within financial expenses reached 53.621 million yuan, the core factor dragging down net profit. Excluding the impact of exchange gains and losses, the company's financial expenses were actually negative, indicating that the main business's cash-generating ability remains solid. The PCB industry is currently undergoing structural divergence alongside macroeconomic development, with emerging fields such as computing infrastructure, new energy vehicles, and embodied intelligence continuing to bring new incremental demand. Through a globalized production capacity layout, the company is optimizing supply chain resilience and is expected to further take on high-end orders from overseas customers. However, the company still faces challenges from raw material price volatility, intensifying exchange rate risks, and increasingly fierce industry competition. If the US dollar to RMB exchange rate continues to fluctuate sharply or raw material costs remain high, short-term profitability may continue to be suppressed. Going forward, close attention should be paid to the extent to which exchange gains and losses disrupt the income statement, as well as the cost dilution effect from higher capacity utilization at the Thailand base.