Shennan Circuits: AI PCB Growth and Optical Module Ramp Up

Goldman Sachs reiterates its Buy rating on Shennan Circuits, raising the 12-month target price to Rmb450 due to AI-driven PCB spec upgrades and the ramp-up of 1.6T optical modules.

Key Takeaways

• 1.AI PCB business is benefiting from specification upgrades for servers and switches, with 1.6T optical module PCB production starting to ramp up in 2Q26.
• 2.The ABF business is recovering with mass production of 22-layer products and verification of 24-layer products, driven by rising China market demand for GPUs and CPUs.
• 3.Shennan announced a new Capex plan of up to Rmb4.6bn for MLPCB capacity expansion to support long-term growth.

Table of Contents

• 1.6T Optical module PCB to ramp up from 2Q26
• Improving ABF business
• Earnings revision
• Valuation
• Price Target Risks and Methodology - Shennan Circuits
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Ratings, coverage universe and related definitions

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial