On November 18, Caifin News (Reporter Lung Tingting) at today's Bomin Electronics (603936.SH) 2024 third-quarter performance briefing, the progress of the new generation of electronic information industry investment expansion project (Phase I) initiated in 2021 attracted investors' attention. 'Plant 3 has basically completed construction, and if there are no other factors interfering, some processes are expected to enter trial operation status by the end of the year.' Huang Xiaodan, the secretary of the board and deputy general manager of Bomin Electronics, introduced.

It is understood that the above project focuses on high-layer and HDI high-end PCB products, with applications in 5G communication, servers, industrial control, automotive electronics, and other fields.

Bomin Electronics Chairman and General Manager Xu Huan told Caifin News reporters, 'Driven by high-end consumer electronics industries such as servers/data storage and mobile phones, the proportion of high-end PCB products such as HDI boards and packaging substrates is gradually increasing, with a 33% share in the HDI field.'

Xu Huan further stated that the global PCB industry is moving towards high precision, high density, and high reliability, continuously improving performance to adapt to downstream industry development. With the rapid evolution of artificial intelligence technology, the demand for AI training and reasoning continues to expand, driving the outbreak of the computing power infrastructure market. The company actively lays out related high-growth sub-sectors. The server products are mainly positioned for HPC server boards, gradually extending to AI servers, and the related products have significant advantages in high-speed material applications, processing density, and design layers.

Caifin News reporters learned that Bomin Electronics achieved mass production of HDI boards in 2011, mastering the production process technology of multi-level products, and further increasing the shipment proportion of high-end HDI boards through fundraising projects.

Bomin Electronics apparently intends to further layout high-end products. In September this year, the company announced that it intends to acquire 86.8535% equity of Benz Electronic, a manufacturer with full-process capabilities for HDI boards, for no more than 0.25 billion yuan. The company stated today, 'The two parties have signed the equity acquisition framework agreement, and relevant intermediaries are conducting due diligence.'

In terms of performance, Bomin Electronics' net income for the first three quarters of this year decreased by 10.05% year-on-year to 50.9638 million yuan. Among them, the net profit attributable to the parent company in the first half of the year decreased by 23.37% year-on-year, mainly due to the significant depreciation and amortization caused by the climbing phase of production capacity of Jiangsu Bomin Phase II factory in the first half of the year, and the significant strategic investment in exploring new energy and smart phone industry top customers by the company in the first half of the year; a net loss of 4.259 million yuan in the third quarter, mainly due to the gradual production of Jiangsu Bomin Phase II project.

An investor asked during the meeting, "When can Jiangsu bomin electronics Phase II stop lagging behind the company's profit growth?" Xu Huan expressed that jiangsu bomin electronics' comprehensive production capacity utilization rate is rising with the industry's recovery, currently reaching around 90%.

Regarding the specific investment direction and breakthroughs in strategic investments in new energy exploration in the first half of the year, bomin electronics responded only with "the business team is currently progressing in an orderly manner."