Delton expands AI PCB capacity in Thailand, with utilization and profitability ramping up together

Overview

This report is based on Goldman Sachs' Thailand/Vietnam Technology Tour (July 7-10) field research at Delton's Thailand factory. Management stated that the factory mainly serves overseas customers' AI PCB demand, and that utilization improvement has supported Delton's strong 1H26 profit growth. The core conclusion is that higher demand for AI PCB end markets, product specification upgrades, and expansion of high-end capacity will continue to push Thailand shipments, ASP, and margins higher.

Core views

Goldman Sachs views Delton's Thailand factory growth outlook positively: on one hand, demand for high-end PCB used in compute workloads is strong, with higher product ASP and profitability than traditional PCB; on the other hand, rising utilization at the Thailand factory is driving shipment growth, consistent with the company's forecast of 85%~95% year-on-year net profit growth in 1H26. The report also maps this trend to Chinese PCB and CCL leaders, arguing that AI server and high-speed switch PCB specification upgrades, higher PCB/CCL USD value content, global AI PCB and CCL demand growth, and the higher ASP and margins of AI PCB/CCL versus normal products should support profit growth of the related leaders over the next few years.

Analysis framework

The report uses on-site research and management interviews as the main framework, combining earnings guidance, capital expenditure plans, and chain read-across analysis. For Delton itself, it focuses primarily on the Thailand factory’s customer structure, product mix, utilization, capacity expansion, and profit improvement; for Chinese PCB/CCL firms, it performs lateral mapping using AI PCB demand, specification upgrades, and value-content uplift.

Methodology notes

• equity_factor_frameworkGS Factor Profile

  Growth, financial returns, valuation multiples, and composite ranking comparison

  Goldman’s factor profile provides stock investment context by comparing growth, financial returns, valuation multiples, and composite indicators against the market and peers in the same industry. Growth is usually based on forward sales, EBITDA, and EPS growth; financial returns are based on ROE, ROCE, and CROCI; valuation multiples are based on metrics such as P/E, P/B, P/D, EV/EBITDA, and EV/FCF.

• event_or_corporate_action_frameworkM&A Rank

  Scoring of potential M&A probability

  Goldman evaluates the likelihood of a covered company becoming an acquisition target using qualitative and quantitative factors; a score of 1 means higher probability, 2 means medium probability, and 3 means lower probability. When the score is 1 or 2, it may be incorporated as an M&A factor in target valuation.

• data_platformQuantum

  Goldman proprietary financial database

  Quantum is Goldman’s proprietary database for accessing detailed historical financial statements, forecasts, and ratios, and can be used for deep analysis of single companies or cross-industry, cross-market company comparisons.

Asset mapping & comparison

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

• Delton Technology (001389.SS)

  Primary company in the report and beneficiary of Thailand AI PCB capacity expansion

  Strengths

  The Thailand factory serves overseas customers’ compute-related high-end PCB demand, with product ASP and profitability above traditional PCB; utilization improvement supports high 1H26 profit growth; the US$80m investment strengthens high-end PCB capacity.

  Weaknesses

  The report does not provide detailed segment-level financials, total capacity scale, customer concentration, or order visibility data.

  Comparison

  Compared with traditional PCB products, AI PCB has higher ASP and margins; the Thailand factory also strengthens the company’s global supply capability.

  Risks

  AI PCB demand, specification upgrades, Thailand capacity expansion execution, and utilization ramp-up may fall short of expectations.

• Victory Giant

  Mapped Chinese PCB beneficiary in the report, listed as Buy

  Strengths

  Benefits from AI server and high-speed switch PCB specification upgrades, higher PCB value per unit, and higher ASP and margins for AI PCB versus traditional products.

  Weaknesses

  The excerpt does not provide company-level detailed financial breakdown.

  Comparison

  Compared with mainstream PCB, AI PCB business has higher ASP and higher margins.

  Risks

  AI PCB demand or profitability may be weaker than expected, and industry competition may intensify.

• WUS

  Mapped Chinese PCB beneficiary in the report, listed as Buy

  Strengths

  Benefits from global AI PCB demand growth and higher AI server PCB value contribution.

  Weaknesses

  The excerpt does not provide company-level detailed operating data.

  Comparison

  As part of the Chinese PCB supply chain, the cyclical conditions are aligned in direction with Delton’s AI PCB expansion trend in Thailand.

  Risks

  The pace of specification upgrades, customer demand, and margin improvement may be weaker than expected.

• Shengyi Tech

  Mapped Chinese CCL beneficiary in the report, listed as Buy

  Strengths

  Benefits from CCL USD value growth driven by AI servers, global AI CCL demand expansion, and higher ASP and margins of AI CCL versus normal materials.

  Weaknesses

  The excerpt does not provide company-level segment revenue or profitability data.

  Comparison

  Compared with standard CCL, AI-related CCL has higher ASP and margins.

  Risks

  AI CCL demand, product upgrades, or pricing/margin performance may underperform expectations.

• Shennan Circuits

  Mapped Chinese PCB beneficiary in the report, listed as Buy

  Strengths

  Benefits from specification upgrades for AI servers and high-speed switches, rising PCB/CCL value content, and global AI PCB demand growth.

  Weaknesses

  The excerpt does not provide company-level detailed earnings forecasts.

  Comparison

  Compared with the general PCB chain, the AI PCB chain has higher profit quality.

  Risks

  Fluctuation in AI infrastructure demand, slower specification upgrades, or industry supply expansion could pressure margins.

Key data

• Research tripThailand / Vietnam Technology Tour, July 7-10The report is based on a visit to Delton's Thailand factory during Goldman’s Thailand/Vietnam technology tour.
• 1H26 net profit guidanceYear-on-year growth of 85%~95%Management said the growth is driven by shipment increase from stronger compute-end demand and higher utilization at the Thailand facility.
• Thailand subsidiary investment planUS$80mThe company announced in April 2026 that it would invest in the Thailand subsidiary to expand high-end PCB capacity at the Thailand plant.
• Delton disclosed priceRmb183.32The company-specific disclosure section of this report shows Delton Technology price; no target price is disclosed in this piece.
• Mapped Buy namesShengyi Tech Rmb157.40; Shennan Circuits Rmb442.56; Victory Giant Rmb296.70; WUS Rmb137.30The report maps AI PCB and CCL attractiveness to Chinese PCB/CCL suppliers.

Impact & implications

The direct implication for Delton is that Thailand’s high-end AI PCB capacity expansion is moving into a phase where utilization and profitability are ramping up together, with overseas compute demand shifting the product mix toward higher ASP and higher-margin offerings. At the industry-chain level, AI servers and high-speed switches are driving PCB specification upgrades and higher per-machine value, which may strengthen profit resilience of Chinese PCB and CCL leaders over the next few years.

Risks

• The report does not provide a detailed company-specific risk list for Delton; continued AI PCB end demand should be monitored.
• If Thailand expansion, ramp-up, and utilization improvement at the factory proceed slower than expected, shipment growth and margin expansion could weaken.
• If specification upgrades for AI server and high-speed switch PCBs underperform, PCB/CCL value growth may be affected.
• If high-end PCB and CCL supply expansion accelerates or competition intensifies, ASP and margins could compress.
• General market risks include share price volatility, exchange-rate volatility, past performance does not guarantee future returns, and capital loss may occur in the investment.

What to watch

• Whether Delton’s 1H26 net profit 85%~95% year-on-year growth outlook is delivered.
• Progress of utilization, shipment volume, product mix, and margin ramp at the Thailand factory.
• Deployment pace and high-end PCB capacity contribution of the US$80m investment in the Thailand subsidiary.
• Overseas customer AI PCB order demand and the pace of AI server/high-speed switch specification upgrades.
• AI-related revenue share, ASP, gross margin, and order visibility of Chinese PCB/CCL leaders.