Victory Giant (A): China Conference takeaways: leading share reaffirmed, new customer wins; Buy

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Victory Giant (A): China Conference takeaways: leading share reaffirmed, new customer wins; Buy

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Victory Giant (A)

China Conference takeaways: leading share

reaffirmed, new customer wins; Buy

Reiterate Rating: BUY | PO: 455.00 CNY | Price: 378.24 CNY

Capacity and leading share drive earnings expansion 12 May 2026

We hosted Victory Giant during our China Conference. The company reiterated its Equity

capacity expansion plan to reach CNY140bn by 2027. Near-term, factory 4 is ramping up

smoothly and factory 10 is already in the equipment move-in stage. While the capacity

Key Changesexpansion follows key customers’ pipelines, Victory Giant is confident it can maintain

50%+ share in key products. We view its aggressive and faster-than-peers’ capacity (CNY) Previous Current

expansion, as well as proven technology, as supporting an extended earnings upcycle, Price Obj. 400.00 455.00

especially amid the tight supply situation. Mgmt. guides AI-related revenue to reach 60- 2026E EPS 9.17 9.08

70% of sales in 2026 vs ~50% in 2025, led by strong demand and rising content value. 2027E EPS 15.10 15.11

2028E EPS 23.26 23.12

2026E EBITDA (m) 12,401.3 12,311.3Solid customer diversification into ASIC

Victory Giant noted that it is expanding into almost all major ASIC customers, vs 2027E EBITDA (m) 20,246.9 20,273.0

previously being focused only on Nvidia. Mgmt. stated that it is ramping up 20L+ MLPCB 2028E EBITDA (m) 30,242.8 30,078.2

for a new customer and its market share will likely further grow into 2027 on potential

adoption of HDI. Additionally, Thailand facilities have received certification from multiple Katherine Zhu >>

Research Analyst

ASIC customers and are under the final testing stage, suggesting further room to grow. Merrill Lynch (Hong Kong)