Goldman maintains a Buy rating on WUS, with Thai capacity ramp-up and AI networking PCB demand as key drivers

Overview

This is a Goldman Sachs company research report on WUS based on a survey of the WUS Thailand factory during the Thailand/Vietnam Tech Tour. The core conclusion is that overseas capacity diversification is still progressing, Thailand factory utilization and customer validation progress are strong, and AI networking PCB demand growth is expected to drive product mix upgrade and profitability improvement, so the Buy rating is maintained.

Core views

Goldman believes WUS has a leading position in the AI networking PCB market and that overseas capacity can help the company better serve global customers amid geopolitical uncertainty. Thailand factory utilization in 1Q26 exceeded 90%, more than 70% of overseas data communications customers have completed validation, and with new capacity expected to begin in 2Q26, these factors support future growth.

Analysis framework

The report mainly uses on-site research, management interviews, and tracking of capacity utilization and customer validation progress, and combines this with a target P/E valuation framework to form its investment view. On valuation, Goldman derives a 12-month target price of Rmb142 using 23x 2027E EPS; the target multiple is based on the relationship between peer P/E and EPS growth and WUS’s expected EPS growth in 2027-28E.

Methodology notes

• Valuation methodsTarget P/E valuation method

  Derive a 12-month target price using 23x 2027E P/E

  Goldman sets WUS’s target P/E at 23x and derives a 12-month target price of Rmb142 based on 2027E EPS; the target multiple references the relationship between peer P/E and EPS growth and WUS’s 2027-28E year-over-year EPS growth.

• Factor analysisGS Factor Profile

  Four-factor framework covering Growth, Financial Returns, Multiple, and Integrated factors

  Goldman discloses that its GS Factor Profile compares the stock with the market and peers through growth, financial returns, valuation multiples, and integrated indicators as background context for investment research.

• M&A assessmentM&A Rank

  Assess the probability of becoming an acquisition target on a scale of 1 to 3

  Goldman discloses that its global coverage framework uses qualitative and quantitative factors to assess potential M&A probability; however, the report summary does not show that the M&A factor is a core driver of WUS’s target price.

Asset mapping & comparison

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

• WUS / 002463.SZ

  Research target, company stock

  Strengths

  Leading position in AI networking PCB, high utilization at the Thailand factory, progress in overseas customer validation, and new capacity addition strengthening delivery capability.

  Weaknesses

  The target price implied in the report has limited upside versus the current price, and new capacity is still in the ramp-up phase.

  Comparison

  The target valuation multiple references the relationship between peer P/E and EPS growth and is based on WUS’s 2027-28E EPS growth.

  Risks

  High-end AI server and high-speed switch migration slower than expected, intensified competition in AI PCB, slower-than-expected expansion of new capacity.

• AI networking PCB

  Core demand driver and strategic direction

  Strengths

  Global end demand for AI PCBs is rising, which is expected to support WUS’s product mix upgrade.

  Weaknesses

  Demand monetization depends on upgrade timing for downstream AI servers and high-speed switches.

  Comparison

  The report emphasizes WUS’s leading position in the AI networking PCB market.

  Risks

  AI server and high-speed switch migration may not occur as quickly as expected, or competition may worsen profitability.

• WUS Thailand factory

  Carrier of overseas capacity and delivery capability

  Strengths

  Utilization above 90% in 1Q26, over 70% of overseas data communications customers completed validation, and new capacity expected to start in 2Q26.

  Weaknesses

  Execution is still required for both capacity expansion and customer volume ramp.

  Comparison

  Overseas capacity is more helpful than single-region capacity in helping the company cope with geopolitical uncertainty.

  Risks

  Capacity ramp for new plants may be slower than expected or customer demand may be released slower than expected.

Key data

• 12-month target priceRmb142.00Based on 23x 2027E P/E.
• Current priceRmb137.30Price disclosed in the report table.
• Implied upside3.4%Based on target price versus current price.
• Thailand factory utilization90%+Management said Thailand factory utilization exceeded 90% in 1Q26.
• Thailand factory net salesRmb295mnReport says this is above Rmb289mn in 2025.
• Overseas data communications customer validation progress70%+More than 70% of overseas data communications customers have completed validation at the Thailand factory.
• New capacity commissioning time2Q26The company expects new Thailand capacity to start production in 2Q26.
• Automotive business progress at Thailand factory4Q25 pilot run, mass production in 2026Automotive business capacity is gradually ramping.

Impact & implications

If Thailand capacity ramps as planned and overseas customer demand continues to grow, WUS is likely to improve global delivery capability, reduce supply-chain impact from geopolitical uncertainty, and upgrade product mix and profitability through AI networking PCB demand. However, with only 3.4% upside versus the report price, returns remain dependent on subsequent earnings realization and valuation support.

Risks

• High-end AI server and high-speed switch migration slower than expected.
• Competition in the AI PCB market is more intense than expected.
• New capacity expansion progresses slower than expected.
• Geopolitical uncertainty may affect supply chain, customer validation, or capacity allocation timing.

What to watch

• The start and ramp-up pace of new capacity at the Thailand factory in 2Q26.
• Whether utilization at the Thailand factory can stay above 90%.
• The proportion of overseas data communications customers completing validation and their order conversion.
• Utilization and revenue contribution after mass-production ramp at the automotive business in the Thailand factory.
• How AI server and high-speed switch upgrade cycles stimulate AI PCB demand.
• Whether subsequent changes are made to target price, EPS forecasts, and P/E assumptions.