Nomura: Victory Giant Technology (300476) — A Key Beneficiary of Global AI Technology Upgrades
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Nomura reiterates a Buy rating on Victory Giant Technology (300476 CH) with a revised target price of CNY 333, lowered from CNY 392. This target is based on 35 times the 2026E EPS of CNY 9.51, aligning with the company's historical median P/E. Nomura trimmed its 2025 revenue and earnings forecasts by 1% and 2%, respectively, reflecting a slower-than-expected capacity ramp in 4Q25. Conversely, 2026-2027 revenue and earnings projections were raised by 5-17% and 9-22%, driven by higher value content and new customer acquisitions.
Victory Giant remains positioned as the primary beneficiary of HDI PCB upgrades for global AI clients. The firm's HDI and HLC (high-layer-count) PCB businesses are expected to accelerate in 2026, with key AI customers projected to contribute over 40% of total revenue. The HLC segment is gaining momentum from ASIC customer breakthroughs, while the HDI segment benefits from Nvidia's next-generation Rubin platform designs.
Supply chain bottlenecks involving high-end copper foil, glass fiber, and laser drilling equipment persist, though Victory Giant mitigates these through strong global supplier relationships and developing domestic partnerships. Nomura notes its 2026-2027 forecasts sit above the Wind consensus by 2-8% for revenue, reflecting greater optimism regarding long-term capacity expansion. Trading at 29.6 times 2026E P/E, the stock offers an implied upside of 18.1%. Risks include client supply chain diversification, intensifying competition, and potential shifts in AI PCB upgrade cycles.