Report Interpretation

Overview

This conference takeaway summarizes Goldman Sachs’ positive view on WUS’s ability to benefit from AI-related PCB demand. The report argues that rising computing density and high-speed networking requirements should support a higher-value product mix, while expansion in China and Thailand improves the company’s ability to serve customers flexibly.

Core views

Goldman Sachs hosted WUS management at its Asia Leaders Conference in Hong Kong and reports that discussions focused on high-end PCB upgrades and coordinated domestic and overseas capacity expansion. The institution remains positive on the company’s growth outlook and maintains Buy. Its central thesis is that the AI infrastructure buildout, increasing computing density per server rack and greater high-speed networking requirements are raising both PCB specifications and PCB usage per AI server rack. The report also points to PCB adoption replacing copper cables in relevant applications, which it says can simplify assembly. On technology, management described WUS’s strengths in AI PCBs as technology capability, product reliability and cost advantages. To meet the tougher signal-integrity, power-integrity and long-term-reliability requirements of AI servers, HPC systems and high-speed network equipment, WUS is strengthening ultra-high-layer stack-up architecture, new-material and HDI technologies. The company is also combining forward-looking research and development with mass-production capability and upgrading its digital and AI-enabled manufacturing system. Goldman Sachs views these initiatives as supporting faster conversion of new technologies into stable volume production and continued optimization of the data-communications product mix. On capacity, WUS continues to advance AI-PCB production lines and new product and technology development in China. In Thailand, the factory has completed certification with most global-tier customers and has entered volume production; management continues to upgrade the facility’s product mix and expand capacity. The company aims to coordinate factories across countries to provide more timely and flexible service to customers amid geopolitical tension. Goldman Sachs treats this manufacturing footprint as an important support for capturing the rising AI-PCB trend. For valuation, Goldman Sachs derives a 12-month target price of Rmb142 using a target 2027E P/E multiple of 23x. The target multiple is based on the correlation between WUS peer P/E multiples and EPS growth, using the company’s estimated 2027–28 EPS year-on-year growth. With the share price at Rmb118.39 as of 2 September 2026, the target implies 19.9% upside. The report identifies three key risks: slower-than-expected migration toward high-end AI servers and high-speed switches, fiercer-than-expected competition in AI PCBs, and slower-than-expected new capacity expansion.

Analysis framework

The report combines management-conference takeaways with an operating assessment of AI-driven PCB demand, technology requirements and manufacturing expansion. It then applies a peer-growth-based P/E valuation framework to 2027E EPS to derive the 12-month target price.

Methodology notes

• Valuation methodsP/E and PEG Valuation

  Peer-growth-based P/E valuation

  Goldman Sachs applies a 23x target P/E multiple to 2027E EPS. The multiple is derived from the relationship between peer P/E levels and EPS growth, with reference to WUS’s projected 2027–28 EPS growth.

• Industry AnalysisUpstream-Midstream-Downstream Transmission

  AI infrastructure demand transmission to PCB content and specifications

  The report links AI infrastructure deployment, higher rack computing density and high-speed networking needs to rising PCB content, tighter performance requirements and a more favorable product mix for WUS.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• WUS (002463.SZ)

  Primary covered company expected to benefit from AI infrastructure demand, higher PCB specifications and expanded global production capacity.

  Strengths

  Technology capability, product reliability, cost advantages, AI-PCB R&D and a Thailand factory that has completed certification with most global-tier customers and entered volume production.

  Comparison

  The target P/E is benchmarked against the relationship between WUS peers’ P/E multiples and EPS growth.

  Risks

  Slower migration to high-end AI servers and high-speed switches, more intense AI-PCB competition, or slower capacity expansion.

Key data

• 12-month target priceRmb142.00Derived using a 23x target P/E multiple on 2027E EPS.
• Share priceRmb118.39Price as of 2 September 2026 close.
• Implied upside19.9%Upside to the stated 12-month target price.
• Target valuation multiple23x 2027E P/EBased on peer P/E and EPS-growth correlation and WUS’s 2027–28E EPS growth.
• Revenue forecastRmb46,964.1mn in 2027E; Rmb63,467.1mn in 2028EGoldman Sachs forecast figures shown in the company data table.

Impact & implications

Goldman Sachs believes WUS is positioned to capture an AI-PCB upcycle through higher-end product development, the conversion of R&D into volume output, and manufacturing coordination across China and Thailand. The stated valuation and Buy rating reflect the institution’s view that these factors can support growth ahead.

Risks

• Migration to high-end AI servers and high-speed switches could be slower than expected.
• Competition in the AI-PCB market could be fiercer than expected.
• New capacity expansion could proceed more slowly than expected.

What to watch

• Progress in high-end AI server and high-speed switch migration.
• Conversion of new PCB technologies into stable mass production.
• Product-mix upgrades and capacity expansion in China and Thailand.
• Customer certification and volume-production progress at the Thailand factory.