New Fundraising & Capex Showcase Robust Project Pipeline; Raise EPS/PT

Research evidence excerpt

New Fundraising & Capex Showcase Robust Project Pipeline; Raise EPS/PT

related PCBs and Delton's REV +11% +15% +13% +22%

higher-than-expected visibility on design wins going forward. EPS +8% +17% +18% +30%

Moving Delton to top pick in our PCB coverage; Reiterate Buy with raised EPS/PT. We

continue to view Delton as in a favorable position among PCB makers, with high revenue 2026 (RMB) Q1A Q2A Q3A Q4A FY

exposure to the server (>70%) market, especially to server CPU (>50%), with a stable EPS 0.88 1.05 1.24 1.70 4.83

competitive landscape and surging demand driven by the proliferation of agentic AI. The trend PREV 4.49

of certain GPU/ASIC players adopting CoWoS for CPU packaging (e.g. NVIDIA's Vera and

AMD's Venice with adjacent memory, I/O, etc.) suggests the increasing importance of CPU,

given these players' need to balance capacity allocations across XPUs. We also believe it is in Chart 1 - Delton CPU/AI Revenue Forecast

a strong position to secure multiple AI PCB projects poised to pick up in 2H26, which should 30 (Rmb bn) 20 90%

20 14 80%

be another critical multi-year growth driver. YTD, Delton is on track with its capacity expansion 10 4 8 70%

target and securing more upstream materials for extra orders, which could offer earnings - 60%

2025 2026E 2027E 2028E

upside. Although we expect upstream players to continue outperforming downstream PCB CPU PCB AI PCB % of Total Revenue

makers in the near term in general, we believe Delton could surprise: we make it our top pick .Source: Company data, Jefferies estimates

within our PCB coverage reflecting our above-cons earnings estimates and its less demanding

valuation vs peers. We raise our 2026-28 rev/NP forecasts by an average 13%/13% to reflect Chart 2 - Delton Capex Forecast

our more positive outlook.