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According to Caixin, on August 22nd, Olympic Circuit Technology (603920.SH), a printed circuit board manufacturer, reported an increase in revenue and net income in the first half of the year, with the automotive application market being the company's largest sales business sector.

According to preliminary estimates from Prismark, the global PCB output value in 2024 is expected to be approximately $73.026 billion, a year-on-year increase of 5%.

Benefiting from the recovery of industry prosperity and the recovery of terminal demand, listed companies in the industry such as Shengyi Electronics (688183.SH), Shenzhen Kinwong Electronic (603228.SH), and Shennan Circuits (002916.SZ) all expect impressive performance in the first half of the year. Among them, Shengyi Electronics is expected to achieve a net profit increase of over 10 times year-on-year.

According to the half-year report for 2024 released by Olympic Circuit Technology today, the company achieved revenues of 2.396 billion yuan and a net profit attributable to shareholders of 0.303 billion yuan in the first half of the year, representing a year-on-year growth of 11.38% and 54.49% respectively. The performance change is mainly due to the combined impact of increased business volume, higher product prices, and the decline in the RMB to USD exchange rate.

Olympic Circuit Technology stated that in the first half of this year, the electronics industry as a whole has rebounded, and the company has closely followed market demand to expand business and has sufficient orders. In addition, with the accelerated release of capacity from the convertible bonds raised investment project, the overall capacity utilization rate has increased. Further optimization of product structure has driven an increase in gross margin. The company's primary business is overseas, with the settlement currency being primarily in USD. In the first half of this year, the RMB to USD exchange rate has fallen, resulting in exchange gains.

After a significant adjustment in 2023, the PCB industry has experienced a recovery. The rise and application of emerging technologies have driven the demand for high-performance PCB boards, such as high-frequency, high-speed, low-loss boards. Industry insiders have told Caixin that the high-end PCB industry chain, especially in datacenter switches and AI servers, as well as the high-end PCB demand driven by automotive intelligence, continues to grow.

The semi-annual report shows that in the downstream application areas of Olympic Circuit Technology, the highest share is in automotive electronics, especially the rapid growth of the business in electronic components for new energy vehicles in recent years, providing support for the company's performance. In the first half of this year, the company introduced domestic automotive terminal customers, among which Geely Jingke, Chery Zhihang, and Ideal driving customers obtained designated intelligent driving projects and entered mass production supply.

In addition, Shenzhen Kinwong Electronic is also vigorously expanding its PCB business in related products such as artificial intelligence, low-altitude flight, wind power, photovoltaic, and energy storage. In terms of products, high-density and ultra-low loss PCBs for cloud data centers, AI large-scale computing modules, and edge computing have been put into mass production.

As for the net cash flow generated from operating activities in the first half of the year, it decreased by 48.88% compared to the same period last year. Olympic Circuit Technology explained that this was due to the increase in purchase payments caused by the expiration of accepted bills.