Solid 1H26 profit alert reaffirms upward trend: ASIC and switch markets are the key growth drivers

研报英文原文证据摘录

Solid 1H26 profit alert reaffirms upward trend: ASIC and switch markets are the key growth drivers

Global Markets Research

Shengyi Electronics 688183.SS 688183 CH 14 July 2026

EQUITY: TECHNOLOGY

RatingSolid 1H26 profit alert reaffirms upward trend Remains Buy

Target price

Increased fromASIC and switch markets are the key growth drivers CNY 159.00 CNY 146.00

Action: Maintain Buy while raise TP to CNY159, implying 25.4% upside Closing14 July 2026price CNY 126.78

Shengyi Electronics (SE) reported a positive profit alert on 13 July after market close. The

company guided for CNY56.2bn-59.37bn of revenue (+49%-58% y-y) and CNY10.82bn- Implied upside +25.4%

11.37bn of net profit (+104-114% y-y) in 1H26E owning to strong AI PCB demand, as well

as new capacity contribution, according to the company. We think SE has started the Market Cap (USD mn) 15,554.1

shipment of its new AI PCB product for its key ASIC customer due to the new product ADT (USD mn) 517.9

ramp-up (i.e. Trainium 3), which should underpin continued ASP and margin uptick in

2H26F. Moreover, we think the company will benefit from the AI switch upgrade in both Relative performance chart

overseas and China markets. We raise FY26-28F revenue / earnings forecasts by 7-15%

/ 6.5%-11.1% (Fig.1) to reflect the faster product ramp-up from key ASIC and switch

customers. We maintain Buy rating and raise TP to CNY159, based on 35x (unchanged)

FY27F EPS of CNY4.55, in line with the company’s historical median P/E, and its FY26-

28F earnings CAGR of 37%. The stock is currently trading at 27.9x FY27F EPS.

AI server and switch adoption will drive PCB content upgrade, leading to better

demand visibility

We think the ASIC chip and AI switch demand would continue to accelerate in 2H26 and