Shennan Circuits Co Ltd Class A

Shennan Circuits has released its 2026 interim report. Total operating revenue reached 15.296 billion yuan, up 46.33% year-on-year, while net profit attributable to the parent company came in at 2.251 billion yuan, up 65.55%. Net cash inflow from operating activities was 1.502 billion yuan, up 0.42% year-on-year. The company's latest asset-liability ratio stood at 55.67%, gross margin at 31.01%, return on equity at 12.49%, and diluted earnings per share at 3.32 yuan. The number of shareholders was 71,500, with the top ten shareholders holding a combined 68.92% stake.

Shennan Circuits' application to issue shares to specific investors was accepted by the Shenzhen Stock Exchange on August 25. The offering plans to issue no more than 204 million shares, with expected proceeds of 4.882 billion yuan. The sponsors are Guotai Haitong Securities and AVIC Securities.

On the evening of August 26, multiple listed companies on the Shanghai and Shenzhen stock exchanges released announcements covering half-year results, major contracts, and buybacks. Jiama Electric said its nuclear power business is now at full capacity. Kingwon Electronics expects to make more progress with cloud server vendors by 2027. Hengtong Optic-Electric has been preliminarily selected for a 1.831 billion yuan marine energy project. Dapu Micro signed a 515 million US dollar enterprise-grade PCIe SSD sales order. On the earnings front, Northern Copper reported first-half net profit of 1.396 billion yuan, up 186.61 percent year on year. Hengtong Optic-Electric posted net profit of 3.12 billion yuan, up 93.38 percent. Hua Hong Hongli reported net profit of 399 million yuan, up 436.69 percent. Lianxun Instruments posted net profit of 567 million yuan, up 903 percent. New China Life reported net profit of 22.793 billion yuan, up 54 percent. Shennan Circuits posted net profit of 2.251 billion yuan, up 65.55 percent. Tsingtao Brewery reported net profit of 3.92 billion yuan, up 0.4 percent. Yili Group posted net profit of 5.759 billion yuan, down 20.02 percent. China CITIC Bank reported net profit of 37.602 billion yuan, up 3.08 percent. Conch Cement posted net profit of 2.527 billion yuan, down 42.76 percent. In addition, Yili Group plans to buy back shares worth between 1 billion and 2 billion yuan for cancellation.

On the evening of August 26, multiple listed companies released positive announcements. Jiamusi Electric Machine said its nuclear power business is currently at full production, and the new multifunctional high-temperature high-pressure nuclear main pump full-flow test bench project, with an investment of 381 million yuan, has been completed, with comprehensive testing capability leading in China. Kinwong Electronic expects to make more positive progress with North American hyperscale cloud provider customers by 2027. Hengtong Optic-Electric's net profit in the first half of the year rose 93.38% year on year, and revenue from its optical communications business grew more than 130% year on year. Hua Hong Semiconductor's net profit in the first half of the year rose 436.69% year on year, with shipments hitting a record high. Lianxun Instruments' net profit in the first half of the year rose 903% year on year, and it plans to transfer 4.8 shares for every 10 shares from capital reserve. New China Life Insurance's net profit in the first half of the year rose 54% year on year, and it plans to pay a cash dividend of 0.73 yuan per share. Shennan Circuits' net profit in the first half of the year was 2.251 billion yuan, up 65.55% year on year. Yili Group plans to buy back shares for no less than 1 billion yuan and no more than 2 billion yuan. Leaderdrive's net profit in the first half of the year rose 31.25% year on year, and its embodied intelligent robot business grew substantially in scale. Northern Copper's net profit in the first half of the year was 1.396 billion yuan, up 186.61% year on year. Dapu Microelectronics signed a sales order for enterprise-grade PCIe SSDs worth 515 million US dollars, accounting for 152.70% of its 2025 main business revenue. COSCO Shipping Specialized Carriers' net profit in the first half of the year was 1.371 billion yuan, up 66.24% year on year.

Xinrui Shares' acquisition of Huilian Electronics has reached a substantive milestone. The company has completed the first payment under the equity purchase agreement, and all legacy issues such as the pledge of the target equity and related-party debts have been fully resolved. Huilian Electronics will be formally consolidated into the company's financial statements starting in August. Huilian Electronics specializes in the field of precision cutting tools for printed circuit boards, mastering core technologies such as mature ultra-fine micro-drills and diamond coatings. Its customers include leading PCB manufacturers like Avary Holding and Shennan Circuits, and it is a significant beneficiary of the industry boom in high-end circuit boards for AI servers. This acquisition is a core strategic move for Xinrui Shares to expand its electronic precision consumables business, with strong synergies with the company's existing cemented carbide main business. The market also views this acquisition as an important step for the company to open up a second growth curve. According to the acquisition agreement, Xinrui Shares paid 79.6528 million yuan in special release funds to the seller Xu Meihua on July 30. The seller settled the corresponding debts on the same day and simultaneously completed all procedures for the cancellation of the equity pledge. Currently, the target equity is free from any rights restrictions such as mortgages, pledges, or freezes. Meanwhile, all related-party debts have been fully settled, with the main sellers—Henan Jiurixu Enterprise Management Company, Xu Meihua, and Li Lingxiang—instructing Xinrui Shares to pay the target company from the equity transfer payments they are due to receive. Currently, the transaction parties are handling relevant tax and industrial and commercial registration change procedures.

On August 4, the A-share PCB concept sector rallied across the board. Zhongjing Electronics hit its daily limit up, while Dongshan Precision, Shengyi Technology, Shennan Circuits, Dongcai Technology, and Tongguan Copper Foil all rose more than 5%. Newly listed Jialichuang surged over 177% intraday on its debut. The rally was directly catalyzed by rising upstream substrate costs. A Citi research report shows that electronic fabric prices recorded their largest single-month increase this year in August, with average prices for the 1080, 2116, and 7628 series rising 17% to 18%, and cumulative gains this year reaching 118% to 165%. AI power supplies are squeezing traditional supply, and costs are being passed on to copper-clad laminates. The spot price including tax for laminates from industry leader Kingboard Laminates may rise another 10% to 15% in August, with the year-to-date average price nearly doubling. China Securities believes that, driven by AI, the global PCB industry is entering a new upward cycle. In 2025, the PCB market space for GPU and ASIC servers has already exceeded 40 billion yuan, and it will surpass 90 billion yuan in 2026, doubling the growth rate. However, capacity expansion is constrained by multiple factors, and the supply-demand balance is unlikely to reverse in the short term.