Wellgao (301251) — In-Depth Research Report
Power-Supply PCB Technology & Capacity as Twin Drivers; Opening the Next Growth Chapter
Key Data Snapshot
| Metric | Value |
|---|---|
| Ticker | 301251.SZ |
| Rating | Buy (initial) |
| Report date | September 3, 2025 |
| Closing price | RMB 50.78 |
| 52-week low / high | RMB 23.94 / 66.55 |
| P/B | 4.44x |
| Free-float market cap | RMB 27.384 billion |
| Total market cap | RMB 68.361 billion |
| Book value per share (LF) | RMB 11.45 |
| Debt-to-assets (LF) | 43.59% |
| Total shares | 134.62 million |
| Free-float A-shares | 53.93 million |
Earnings Forecast & Valuation
| Metric | 2023A | 2024A | 2025E | 2026E | 2027E |
|---|---|---|---|---|---|
| Revenue (RMB mn) | 822.69 | 1,021.64 | 1,688.65 | 2,543.75 | 2,988.65 |
| YoY (%) | -1.69 | 24.18 | 65.29 | 50.64 | 17.49 |
| Net profit to parent (RMB mn) | 90.16 | 55.86 | 180.36 | 275.28 | 340.22 |
| YoY (%) | 2.69 | -38.05 | 222.87 | 52.63 | 23.59 |
| EPS — fully diluted (RMB) | 0.67 | 0.41 | 1.34 | 2.04 | 2.53 |
| P/E | 75.82 | 122.38 | 37.90 | 25.04 | 20.09 |
Investment Thesis
I. AC-DC power PCBs for Delta; inflection as Thailand ramps
Company:
- Since 2004, focused on industrial power-supply PCBs
- Global tier-1 qualifications via technology & quality
- Key customers: Delta, Samsung, Luxshare, among others
Products:
- Heavy copper boards
- MiniLED optical boards
- Planar transformer boards
End markets:
- Industrial control, displays, digital comms, automotive electronics
History:
- 2004–2009: entry via industrial segment
- 2010–2018: deepening industrial control
- 2019–2023: Jiangxi plant built and ramped
- 2024–present: Thailand plant in production; quality growth phase
Results:
- 2024 revenue RMB 1.02 bn, +24% YoY
- 2024 net profit RMB 56 mn, -38% YoY (Thailand ramp)
- 1H25 revenue RMB 720 mn, +59% YoY
- 1H25 net profit RMB 45 mn, +18% YoY
II. Server power upgrades lift PCB value & volume
Three-tier AI data-center power:
- UPS / HVDC — UPS: AC-DC-AC; HVDC: 240/336 V DC without inverter stage
- AC-DC — rack power shelf, AC to 48 V DC; vendors include Delta, Megmeet, Aohong, etc.
- DC-DC — 48 V→12 V (PDB), then 12 V→0.8/1 V (VRM); vendors include MPS, Renesas, etc.
Power density:
- HGX AI server rack TDP ~60–80 kW
- GB200 NVL72 rack TDP ~140 kW
PCB implications:
- Thicker copper for higher current — tougher lamination resin fill, drilling, plating
- Embedded power modules — ~40% higher current capability; ~1/3 less semiconductor at same output; potential ~20% BOM savings
- Thermal design — higher copper retention, thermal vias, embedded copper / ceramic
Market sizing:
- 2025 global AI server power market ~RMB 21.1 bn
- 2026E ~RMB 40 bn, +89% YoY
- If PCBs ~10% of BOM → ~RMB 4 bn AC-DC PCB TAM in 2026
III. Secondary / tertiary power PCBs; multi-site capacity
| Site | Role | Capacity plan |
|---|---|---|
| Huizhou | Legacy | Double-sided & multilayer |
| Jiangxi Phase I | 200k m²/month | Operating |
| Jiangxi Phase II | Ramp by year-end | 100k m²/month |
| Thailand | AI-related | 100k m²/month by year-end E |
Product roadmap:
- Solid primary power PCBs; push secondary & tertiary power boards
- Optics, high-speed comms, and other high-margin lines
DC-DC breakthrough:
- Cleared 30L-class technical hurdles; thermal materials & special embedded-copper processes → volume DC-DC modules
IV. Mini LED display edge
Market:
- 2024 global Mini LED USD 2.32 bn; 2018–2024 CAGR 147.88%
Company:
- End-to-end automated MiniLED-dedicated PCB line
- Qualified into Samsung and other top panel makers; usable on very large screens
Specs (examples):
- MiniLED die: 0.1–0.2 mm (±15%)
- Pad gap: 75–120 μm
- Reflectance: ≥85%
- Yellowing index B: ≤2
- Size shrinkage: ±50 μm
Segment Forecast
| Segment | 2025E | 2026E | 2027E |
|---|---|---|---|
| Double-sided revenue (RMB bn) | 4.46 | 4.69 | 4.91 |
| YoY | 9% | 5% | 5% |
| Gross margin | 14% | 16% | 16% |
| Multilayer revenue (RMB bn) | 10.57 | 18.20 | 22.28 |
| YoY | 112% | 72% | 22% |
| Gross margin | 16% | 18% | 20% |
| Other (RMB bn) | 1.86 | 2.54 | 2.69 |
| Gross margin | 86.7% | 87% | 88.2% |
Consolidated: 2025–2027 revenue RMB 16.89 / 25.44 / 29.89 bn; growth 65% / 51% / 17%; blended gross margin 23.2% / 24.5% / 25.5%.
Comparable valuation
| Company | 2025E P/E | 2026E P/E | 2027E P/E |
|---|---|---|---|
| Victory Giant | — | — | — |
| WUS Printed Circuit | — | — | — |
| Shennan Circuit | — | — | — |
| Dongshan Precision | — | — | — |
| Sye Electronics | — | — | — |
| Peer average | 48 | 35 | 29 |
| Wellgao | 38 | 25 | 20 |
Valuation below peer average; initial Buy.
Risks
- Raw material price volatility
- Inventory management
- Macro & end-demand swings
- Intensifying competition
Source: Soochow Securities Research
