Goldman Sachs: Victory Giant (300476.SZ) Management Meeting — AI PCB Migration Underway; Capacity Expansion to Capture Growth
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Following a management meeting during its China Tech Tour in Shenzhen on May 20, 2026, Goldman Sachs reiterated a Buy rating on Victory Giant (300476.SZ) with a 12-month target price of RMB 550. This target implies approximately 64.6% upside potential from the current share price of RMB 334.20. The valuation is underpinned by a target price-to-earnings multiple of 26.3 times applied to the projected 2027 earnings per share.
Management expressed strong optimism regarding the company's AI printed circuit board (PCB) momentum, driven by robust end-demand from GPU and ASIC AI servers. Goldman Sachs identified several key growth drivers: accelerated global AI infrastructure investment, PCB specification upgrades increasing value per unit, a structural shift replacing copper cables with PCBs in AI servers, and expansion into optical module and advanced packaging PCBs. Furthermore, demand from local AI server clients is significantly outpacing initial expectations. The company's research and development capabilities and timely capacity expansions position it favorably to secure new technology ramps.
Goldman Sachs projects revenues of RMB 36.534 billion, RMB 64.883 billion, and RMB 87.985 billion for 2026, 2027, and 2028, respectively, with corresponding EPS of RMB 11.41, RMB 20.80, and RMB 27.58. Free cash flow yield is expected to improve from negative 0.1% in 2026 to 6.4% by 2028. Principal risks encompass slower-than-expected AI server shipments, delays in PCB specification upgrades, and intensifying market competition.