The "Science and Technology Innovation Board Daily" reported on the evening of August 27th that Shengyi Electronics released its 2024 interim report. The company achieved an operating income of 1.973 billion yuan, a year-on-year increase of 24.64%; and a net profit of 96.0887 million yuan, a year-on-year increase of 903.93%.

Regarding the reasons for the performance change, Shengyi Electronics stated that with the increasing demand for high-layer, high-precision, high-density, and high-reliability multi-layer printed circuit boards in the market, the company's production, sales, and revenue have all increased compared to the same period of the previous year.

Public information shows that Shengyi Electronics' main business is printed circuit boards (PCB), with the company's PCB products mainly focusing on the communication, server, and automotive electronics fields. Previously, the company's sales revenue in the communication sector was relatively high.

From the perspective of the industry environment, according to several PCB industry insiders who previously spoke to the "Science and Technology Innovation Board Daily", the PCB market has shown a moderate recovery trend this year. The demand for products driven by AI servers has significantly rebounded.

According to Trend Force's forecast, the global shipment of AI servers is expected to rise to 1.672 million units in 2024, with a high year-on-year growth rate of 38.4%. The downstream release of positive signals, and the high concentration of upstream copper clad laminates manufacturers will be the first to benefit.

Shengyi Electronics stated that during the reporting period, the company seized new opportunities brought by artificial intelligence technology and completed the development of AI server products.

In terms of the progress of AI server projects, several clients of the company have successfully completed certifications, and large-scale deliveries were achieved in the first half of the year. It has developed several AI server customers including Amazon, and the mainboard and acceleration card projects for AI support have entered the mass production stage. The company stated, 'With the commissioning and yield improvement of the Dongcheng Phase IV, the production capacity for AI products will be further expanded.'

It is worth mentioning that the automotive electronics sector also saw a recovery in the first half of the year. According to third-party market data, the global cumulative sales of autos from January to May 2024 reached 34.672 million units, with a year-on-year growth of approximately 1.1%; in the new energy vehicle sub-market, the cumulative sales of new cars in the first 5 months of this year reached 5.677 million units, an increase of 21.0% year-on-year, and a penetration rate of 16.4%.

In institutional research, SAE Electronics stated that in the first half of 2024, the company continued to strengthen its cooperation with global leaders in the automotive electronics and electric vehicle industries, and developed related products in key technological sectors such as autonomous driving, smart cabins, and power energy, further enhancing the market competitiveness of its automotive electronic PCB products and customer recognition.

"In the future, with the continuous development of the automotive industry, automotive electronics will gain a broader market. It is expected that the market size of China's automotive electronics industry will grow by 5.6% in 2024, reaching 1.16 trillion yuan," SAE Electronics further stated.

Accompanying the recovery of the PCB industry, related individual stock market performance has been active.

The "Star Market Daily" reporter noticed that six months ago, SAE Electronics' stock price was stuck in a "quagmire" of falling below its issue price of 12.42 yuan per share. Since the beginning of this year, the company's stock price has surged significantly, with a cumulative increase of 71.71%. As of the closing on August 27, SAE Electronics fell by 1.59% to 19.30 yuan per share, with a total market value of 16.05 billion yuan.