Pengding Holdings Plans to Invest 10 Billion Yuan in AI High-End Substrate-Like PCBs and Flexible Circuit Board Smart Manufacturing Base

Bualuang Securities says a new angle for KCE shares is the possibility that the selling price increase cycle could extend into 2027, even though the market has already priced in the July increase and another in the fourth quarter of 2026. The key driver is not direct demand for AI circuit boards, but the cost of standard E-glass, the upstream raw material for CCL, which continues to rise after producers gradually shifted capacity to higher-grade materials for AI that offer better returns. Morgan Stanley's price index for standard E-glass fiber rose from 1.0 times in September 2025 to 3.7 times in August 2026 and 4.1 times in September 2026, while KCE's fiberglass purchase price rose from 0.49 US dollars per meter in the second quarter of 2025 to 0.74 US dollars per meter in the second quarter of 2026, an increase of 51% year on year, which is still much smaller than the rise in upstream raw material prices, leaving a risk that cost pressure will feed through further. The research team has not yet included a third price increase in 2027 in its base-case estimates, because the general-grade CCL market is not yet entirely in shortage. It keeps its assumptions for the July and fourth-quarter 2026 price increases, maintains its TRADING BUY rating with a 70 baht target price, and views any additional price increase in 2027 as upside rather than part of the base case. Core profit is expected at 1.44 billion baht in 2026, up 78% year on year, 2.07 billion baht in 2027, up 43.9%, and 2.30 billion baht in 2028, up 11.1%.

After market close on September 18, Vöhringer announced plans to acquire a 51% stake in Nanjing Kress Automation Technology Co., Ltd. for approximately 214 million yuan in cash, entering the PCB lamination automation equipment sector. According to the announcement, the company intends to purchase 30.60% and 20.40% stakes in Kress from Qin Zaocai and Yang Zhenyu respectively, for 128.5 million yuan and 85.68 million yuan, funded by internal resources with installment payments. Upon completion, Kress will become a controlled subsidiary of the listed company. Kress reported revenue of 53.8746 million yuan and 44.949 million yuan for 2025 and the first half of 2026, with net profit of 5.0922 million yuan and 9.721 million yuan respectively. The counterparties commit that Kress's non-GAAP net profit attributable to the parent from 2026 to 2029 will be no less than 40 million yuan, 45 million yuan, 50 million yuan and 50 million yuan respectively. Vöhringer's main business is wood flooring and whole-home custom furnishings. In the first half of 2026, revenue was approximately 96.2976 million yuan, down 30.42% year-on-year, with a net loss attributable to the parent of approximately 37.0864 million yuan. The announcement cautioned that the company has no operating experience or talent reserves in PCB-specific equipment, and the transaction is expected to create goodwill of approximately 200 million yuan, which may exceed 20% of net assets.