AI server PCB demand and specification upgrades drive expansion; maintain Buy

Overview

This report focuses on demand growth, specification upgrades, and capacity expansion for Victory Giant in the AI server PCB segment. Goldman Sachs believes the company’s 2026 investment plan of up to Rmb20bn shows management confidence in AI PCB demand growth, and the company’s leading position in GPU AI server PCBs should help it capture subsequent demand. The report maintains a Buy rating and a 12-month target price of Rmb550.

Core views

The core views are: first, AI server PCB shipments are expected to continue ramping up; second, PCB specifications for GPU and ASIC AI servers will move toward higher layer counts, higher material grades, and more complex structures; third, the company’s expansion efficiency is a key competitive advantage; and fourth, the increase in PCB value per server from specification upgrades is expected to support revenue growth and margin improvement.

Analysis framework

The report analyzes the company’s investment plan, the technical roadmap for AI server PCBs, the relationship between peer P/E ratios and EPS growth, and Goldman Sachs’ forecasts for revenue, EBITDA, EPS, and margins. On valuation, it uses 2027E EPS and applies a 26.3x target P/E, with the target multiple derived from the correlation between peer forward P/E and EPS growth.

Methodology notes

• Valuation methodsTarget P/E valuation method

  Derive the 12-month target price based on 2027E EPS and a 26.3x target P/E

  The target P/E multiple is derived from the correlation between peer forward P/E and EPS growth; the report maintains Victory Giant’s 12-month target price at Rmb550.

• Industry technical analysisAI server PCB specification upgrade framework

  Higher-layer-count MLPCB/HDI, midplane/backplane introduction, and material upgrades such as M9+ CCL

  The report believes that rising internal data transmission requirements in AI servers will drive PCB specification upgrades and increase PCB value per server as well as capacity consumption.

• Factor profileGS Factor Profile

  Growth, Financial Returns, Multiple and Integrated percentile comparison

  The Goldman Sachs factor profile is used to compare a stock’s growth, financial returns, and valuation multiples with the market and industry peers as investment context.

Asset mapping & comparison

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

• Victory Giant（300476.SZ）

  Core beneficiary of AI server PCBs

  Strengths

  Holds a leading market position in GPU AI server PCBs, has an aggressive expansion plan, and can capture demand from upgrades toward higher-layer-count MLPCB, HDI, and higher-grade materials.

  Weaknesses

  Expansion requires substantial capital investment, and revenue and profit realization depend on the AI server shipment pace and the progress of specification upgrades.

  Comparison

  The valuation target multiple references the P/E and EPS growth correlation among PCB and server supply chain peers, and the report assigns a 26.3x target P/E.

  Risks

  AI server shipment ramp-up slower than expected, PCB specification upgrades slower than expected, and stronger-than-expected market competition.

• AI server PCB industry chain

  Demand driver

  Strengths

  GPU/ASIC servers require higher data transmission capability, driving adoption of midplane/backplane, higher-layer-count boards, and materials such as M9+ CCL.

  Weaknesses

  Technology roadmaps and customer demand may still change, and the pace of some specification upgrades remains uncertain.

  Comparison

  Compared with traditional consumer PCB, AI server PCB may consume more capacity and have higher value per unit.

  Risks

  Volatility in end-market AI server demand, intensifying supply chain competition, and slower-than-expected customer qualification or ramp-up.

Key data

• 2026 investment planUp to Rmb20bnIncluding up to Rmb18bn for fixed asset investment and up to Rmb2bn for equity investment; the 2025 investment plan was Rmb3bn.
• Target priceRmb550.00Based on 2027E EPS and a 26.3x target P/E, the 12-month target price remains unchanged.
• Current priceRmb257.28Price as of the close on 2026-03-30.
• Implied upside113.8%Calculated from the Rmb550 target price relative to the current price of Rmb257.28.
• 2026E revenueRmb36,604.9mnGoldman Sachs forecasts a significant increase from Rmb19,292.3mn in 2025.
• 2027E revenueRmb64,749.2mnReflects expectations for continued AI PCB demand expansion.
• 2026E EPSRmb11.46Forecast by Goldman Sachs.
• 2027E EPSRmb20.91Used as the basis for target P/E valuation.
• 2026 capital expenditureRmb7bnThe report says the company’s capex this year is aimed at capturing rising AI PCB demand.
• M&A Rank3Within the Goldman Sachs framework, this indicates a low probability of being acquired and is usually not included in the target price.

Impact & implications

If AI server PCB demand and specification upgrades progress as expected in the report, Victory Giant could benefit simultaneously from shipment growth, higher value per server, and scale efficiencies, thereby driving revenue, margin, and EPS growth. Higher capital expenditure also means the company will respond to AI PCB end-demand with more aggressive capacity expansion.

Risks

• AI server shipment ramp-up slower than expected.
• AI server PCB specification upgrades slower than expected.
• Market competition more intense than expected.
• If large-scale capital expenditures do not match order realization, utilization and return pressure may arise.

What to watch

• The implementation pace and actual capex execution of the 2026 investment plan of up to Rmb20bn.
• Progress in specification upgrades such as midplane, backplane, higher-layer-count MLPCB/HDI, and M9+ CCL in GPU/ASIC AI servers.
• The company’s orders, capacity utilization, and customer ramp-up in AI server PCBs.
• Whether 2026E to 2028E revenue, EPS, gross margin, and FCF yield improve as forecast.
• Changes in the industry competitive landscape and the impact of peers’ capacity expansion on pricing and margins.