Goldman Sachs Victory Giant (300476.SZ): Mgmt. visit: AI PCB dollar content increase driving growth; Efficient capacity expansion to support clients; Buy
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Goldman Sachs recently hosted Victory Giant's Board Secretary in Hong Kong. Management expressed strong optimism regarding the increasing dollar content of PCBs used in AI servers. The company is collaborating closely with major clients to develop next-generation products and is actively expanding into the ASIC AI server supply chain, which is expected to gradually contribute to revenue starting this year.
Management highlighted efficient capacity expansion as a key competitive advantage, enabling the company to capture incremental client demand and support volume production. AI PCBs offer a higher return on investment compared to other end-use applications. Victory Giant leverages its deep expertise in supply chain management, high-layer board manufacturing, and highly automated production design to scale capacity effectively.
Regarding upstream material inflation, management noted that pricing pressure can be passed downstream and reflected in next-generation product pricing, thereby minimizing margin impact. For new platform material upgrades, major clients typically test new solutions at Victory Giant's facilities before mass production, owing to the firm's proprietary know-how and development efficiency.
Goldman Sachs maintains a Buy rating with a 12-month target price of Rmb 550, based on 26.3x 2027E P/E. This leaves potential upside of 117.3% from the current price of Rmb 253.14. Primary risks include a slower-than-expected ramp in AI server shipments, delayed PCB specification upgrades, and intensifying market competition.