Shennan Circuit (002916.SZ) — AI Compute + Storage Drive Above-Plan 2025 Growth
Source: Pacific Securities | Date: March 25, 2026 | Rating: Buy (maintain)
Key Data Snapshot
| Metric | Value |
|---|---|
| Closing price | RMB 235.03 |
| Market cap | 1,600.95 (RMB 100 mn) |
| Free-float market cap | 1,562.50 (RMB 100 mn) |
| Total shares | 681 million |
| 12-month high / low | RMB 295.66 / 82.00 |
Earnings forecast
| Year | Revenue (RMB 100 mn) | Net profit to parent (RMB 100 mn) | EPS (RMB) | P/E |
|---|---|---|---|---|
| 2024A | 179.07 | 18.78 | 2.76 | 85.27x |
| 2025A | 236.47 | 32.76 | 4.81 | 48.87x |
| 2026E | 315.98 | 55.46 | 8.14 | 28.87x |
| 2027E | 402.90 | 75.45 | 11.08 | 21.22x |
| 2028E | 501.46 | 97.25 | 14.28 | 16.46x |
Results
FY2025 annual report
- Revenue: 236.47 (RMB 100 mn), +32.05% YoY
- Net profit to parent: 32.76 (RMB 100 mn), +74.47% YoY
- Recurring net profit: 31.14 (RMB 100 mn), +78.96% YoY
- Beat expectations
Business review
PCBs: AI compute + automotive
| Metric | 2025 | YoY |
|---|---|---|
| Revenue | 143.59 (RMB 100 mn) | +36.84% |
| Gross margin | 35.53% | +3.91 ppt |
Drivers:
- Data center — AI servers and related pull-through orders up sharply YoY
- Comms — high-speed switches & optical modules; improving mix
- Automotive — ADAS & NEV powertrain (battery/motor/inverter) content; orders growing fast
Packaging substrates: storage ramp as second engine
| Metric | 2025 | YoY |
|---|---|---|
| Revenue | 41.48 (RMB 100 mn) | +30.80% |
| Gross margin | 22.58% | +4.43 ppt |
Progress:
- Storage products qualified and in volume → strong order growth
- FC-BGA: ≤22 layers in mass production; ≥24 layers R&D & sampling on track
- Guangzhou ramp smooth → margin tailwind
Investment thesis
1. AI compute → PCB growth
- Datacenter demand surge; AI server stack orders up materially
- High-speed switch & optical module demand; +3.91 ppt PCB gross margin from mix
2. Storage + substrates
- Storage lines driving substrate orders
- FC-BGA: ≤22L in production
- Guangzhou capacity → +4.43 ppt substrate gross margin
3. Automotive as incremental driver
- ADAS & NEV power electronics; fast order growth; ongoing mix upgrade
4. Earnings trajectory
- 2026E net profit 55.46 (RMB 100 mn), +69.29% YoY
- 2027E 75.45 (RMB 100 mn), +36.06% YoY
- 2028E 97.25 (RMB 100 mn), +28.89% YoY
Profitability
| Metric | 2024A | 2025A | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|
| Gross margin | 24.83% | 28.32% | 31.65% | 32.62% | 33.13% |
| Net margin | 10.48% | 13.85% | 17.55% | 18.73% | 19.39% |
| ROE | 12.85% | 19.10% | 27.81% | 31.81% | 34.01% |
Valuation
| Year | P/E | P/B | EV/EBITDA |
|---|---|---|---|
| 2024A | 85.27x | 10.95x | 18.31x |
| 2025A | 48.87x | 9.34x | 29.00x |
| 2026E | 28.87x | 8.03x | 19.64x |
| 2027E | 21.22x | 6.75x | 14.88x |
| 2028E | 16.46x | 5.60x | 11.65x |
Risks
- Weaker downstream demand
- Intensifying industry competition
Disclaimer: Content is from Pacific Securities, for study only; not investment advice.
