Sye Electronics (688183.SH) — Leading Domestic PCB Supplier; Well Positioned for AI Demand
Source: Huaan Securities | Date: December 29, 2025 | Rating: Buy (initial coverage)
Key Data Snapshot
| Metric | Value |
|---|---|
| Closing price | RMB 100.65 |
| Market cap | 837.2 (RMB 100 mn) |
| Free-float market cap | 837.2 (RMB 100 mn) |
| Total shares | 832 million |
| 12-month high / low | RMB 122.00 / 19.59 |
Earnings forecast
| Year | Revenue (RMB 100 mn) | Net profit to parent (RMB 100 mn) | EPS (RMB) | P/E |
|---|---|---|---|---|
| 2024A | 46.87 | 3.32 | 0.40 | 98.15x |
| 2025E | 94.60 | 15.14 | 1.82 | 55.30x |
| 2026E | 130.80 | 23.40 | 2.81 | 35.78x |
| 2027E | 172.70 | 31.45 | 3.78 | 26.62x |
Results
FY2024
- Revenue: 46.87 (RMB 100 mn), +43.2% YoY
- Net profit to parent: 3.32 (RMB 100 mn), +1,428.2% YoY
- Gross margin: 22.7%
- ROE: 7.8%
Company overview
Profile
Founded in 1985, Sye Electronics focuses on R&D, production, and sales of printed circuit boards, targeting mid-to-high-end applications with high precision, density, and reliability.
End markets
- Communications equipment
- Networking equipment
- Computer / server
- Automotive electronics
- Consumer electronics
- Industrial & medical
Investment thesis
1. Technology stack & new applications
Innovation:
- Dedicated teams on flagship programs
- Accelerating industrialization of AI server, 800G switch, and satellite comms PCBs
- Integrated technical service teams and incentive structures
New R&D programs (1H25 examples):
- Next-gen core optical comms components
- Next-gen smart cockpit modules
- Next-gen AI compute acceleration modules
- Next-gen AI power / energy hub products
- Next-gen general-purpose compute platform
- Intelligent sensing radar
- Next-gen high-speed large-chiplet networking
2. AI chips → PCB content
Industry:
- GPUs and accelerators for cloud & datacenter AI growing rapidly
- Server PCBs must track chip generations; typical life 3–5 years, maturity often 2–3 years
Tech cadence:
- Each platform raises bar on signal rate, loss budget, routing density → PCB specs upgrade in step
3. Earnings visibility
- 2025E net profit 15.14 (RMB 100 mn), +356.0% YoY
- 2026E 23.40 (RMB 100 mn), +54.6% YoY
- 2027E 31.45 (RMB 100 mn), +34.4% YoY
- 2026E P/E 35.78x; 2027E 26.62x
Profitability
| Metric | 2024A | 2025E | 2026E | 2027E |
|---|---|---|---|---|
| Gross margin | 22.7% | 30.7% | 32.9% | 33.1% |
| Net margin | 7.1% | 16.0% | 17.9% | 18.2% |
| ROE | 7.8% | 26.6% | 29.2% | 28.2% |
Valuation
| Year | P/E | P/B | EV/EBITDA |
|---|---|---|---|
| 2024A | 98.15x | 7.64x | 47.14x |
| 2025E | 55.30x | 14.72x | 42.93x |
| 2026E | 35.78x | 10.43x | 28.88x |
| 2027E | 26.62x | 7.49x | 21.46x |
Risks
- AI demand below expectations
- R&D or execution delays
- PCB industry competition
- Elevated key material costs
Disclaimer: Content is from Huaan Securities, for study only; not investment advice.
