Shennan Circuits Co., Ltd. designs, manufactures, and sells printed circuit boards, packaging substrates, and electronic assemblies in China and internationally. It operates through Packaging Substrates, Packaging Substrates, and Distribution Substrates segments. The company offers RF and microwave, thermal management, miniaturization, and chip package substrate solutions, as well as schematic design, PCB/SiP design, PCB/SUB production, electronic assembly, and package testing. Formerly known as CATIC Shenzhen Shennan Circuit Company, it changed its name to Shennan Circuits Co., Ltd. in January 2000. Incorporated in 1984 and headquartered in Shenzhen, China, it operates as a subsidiary of AVIC International Holdings Limited.
Why is Shennan Circuits Co Ltd Class A (002916.CS) moving?
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AI demand lifts Shennan Circuits profits, but valuation fears bite
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AI-driven PCB upcycle lifts Shennan Circuits Electronic fabric prices jumped 17-18% in August, their biggest monthly gain this year, as AI power supplies squeeze supply. Analysts say the global PCB industry is entering a new upcycle, with server PCB market space set to double to over 90 billion yuan in 2026. Shennan Circuits, a PCB maker, rose over 5% in the sector rally.
This is the core positive force behind the stock: AI demand driving PCB pricing and sector-wide gains.
First-half profit jumps 65.55% on AI orders Shennan Circuits reported first-half 2026 revenue of 15.296 billion yuan, up 46.33%, and net profit of 2.251 billion yuan, up 65.55% year on year. The company credited AI computing infrastructure investment and new customer wins. Second-quarter profit of 1.401 billion yuan beat the midpoint of its own forecast.
Strong earnings confirm the AI demand story is flowing into actual profits, a key support for the stock.
OpenAI revenue miss triggers AI hardware selloff OpenAI's annualized revenue run rate came in about $20 billion below expectations, sparking panic. A-share computing hardware stocks fell hard, with Shennan Circuits dropping more than 6% along with other PCB names. The selloff reflects fears that AI spending may not justify current valuations.
This is the main counterweight: a sharp sentiment-driven drop showing how sensitive the stock is to AI spending doubts.
China GDP slowdown weighs on electronics demand China's second-quarter GDP growth slowed to 4.3%, missing expectations, and the Shanghai Composite fell. Semiconductor and electronic component stocks, including Shennan Circuits, declined as investors worried about weaker demand for electronics. This is a broad economic headwind rather than a company-specific problem.
It shows a macro risk that can pressure demand for Shennan Circuits' products, balancing the bullish AI narrative.
OpenAI's annualized revenue forecast gap of about $20 billion sparks panic, A-share computing hardware sector falls across the board
On October 9, the A-share computing hardware sector suffered a deep correction. The STAR 50 Index fell nearly 4% intraday, and the semiconductor index dropped more than 4%. AI hardware segments such as MLCC, PCB, and CPO led the decline. Multiple stocks including Fenghua Advanced Technology and Jinan Guoji hit the daily limit down. Zhongji Innolight fell more than 5%, and a batch of PCB stocks such as Wus Printed Circuit and Shennan Circuits dropped more than 6%. Overnight in the US, the Philadelphia Semiconductor Index tumbled 3.39%, with Nvidia, AMD, Broadcom, and Intel all falling. Applied Optoelectronics dropped more than 13%, and Coherent fell 9.63%. In Asian markets, Japan's SoftBank fell more than 4%, and Kioxia dropped nearly 2%. According to market sources, financial documents disclosed by OpenAI to investors show that as of the end of September, its annualized revenue run rate was about $50 billion, significantly lower than the previously widely circulated expectation of nearly $70 billion, a gap of about $20 billion, triggering market panic. On the industry fundamentals side, MLCC demand has not weakened. On October 6, Samsung Electro-Mechanics announced a supply contract for AI server MLCCs with a large global enterprise, worth about 285.611 billion Korean won, approximately 1.427 billion yuan. Since June 2026, Samsung Electro-Mechanics has disclosed four AI server MLCC orders totaling about 2.11 trillion Korean won, approximately 10.519 billion yuan, all long-term agreements extending to the end of 2027. Last night, Dongshan Precision issued a statement responding to rumors about restrictions on optical chip procurement, saying that the claim of a 65% US-origin material ratio is an unofficial market rumor, and that some of the optical chips used in its optical modules are self-developed and self-produced, accounting for no more than 10% of BOM costs. CITIC Securities released a fourth-quarter technology strategy research report yesterday, arguing that the current global tech stock correction mainly reflects valuation contraction rather than earnings downgrades, and that capital expenditure growth from 2027 to 2028 will support upward earnings in the computing power supply chain.
009150.KO · Demand · Positive Samsung Electro-Mechanics announced a ~1.427 billion yuan AI server MLCC supply contract with a large global enterprise, part of four AI server MLCC orders totaling ~10.5 billion yuan through end-2027.
002384.CS · Regulation · Neutral Issued a statement denying rumors of a 65% US-origin material ratio restriction on optical chip procurement, calling it unofficial market rumor.
000636.CS · · Negative Hit daily limit down as part of the broad A-share computing hardware selloff sparked by OpenAI's revenue shortfall panic; no company-specific development.
002463.CS · · Negative Dropped more than 6% amid the sector-wide PCB decline tied to the OpenAI revenue-gap panic; no company-specific news.
002916.CS · · Negative Fell more than 6% as part of the broad PCB/computing hardware selloff driven by OpenAI's revenue miss; no company-specific development.
300308.CS · · Negative Fell more than 5% in the AI hardware-led A-share correction sparked by OpenAI's revenue forecast gap; no company-specific news.
Shennan Circuits Chairman Yang Zhicheng Retires, Yang Zhiqin Takes Over
Shennan Circuits announced on October 7 that Chairman Yang Zhicheng has resigned after reaching the statutory retirement age, with the resignation taking effect upon delivery to the board of directors. The company held a board meeting on September 30, 2026, electing Yang Zhiqin as the new chairman, with a term lasting until the end of the fourth board of directors' tenure. Yang Zhiqin will also serve as the company's legal representative. In the first half of 2026, Shennan Circuits achieved revenue of 15.296 billion yuan and net profit attributable to the parent company of 2.251 billion yuan.
002916.CS · · Neutral Chairman Yang Zhicheng retires and Yang Zhiqin is elected chairman; a leadership change with no stated operational or financial impact.
Shennan Circuits' 2026 interim net profit reaches 2.251 billion yuan, up 65.55% year-on-year
Shennan Circuits has released its 2026 interim report. Total operating revenue reached 15.296 billion yuan, up 46.33% year-on-year, while net profit attributable to the parent company came in at 2.251 billion yuan, up 65.55%. Net cash inflow from operating activities was 1.502 billion yuan, up 0.42% year-on-year. The company's latest asset-liability ratio stood at 55.67%, gross margin at 31.01%, return on equity at 12.49%, and diluted earnings per share at 3.32 yuan. The number of shareholders was 71,500, with the top ten shareholders holding a combined 68.92% stake.
Shennan Circuits' private placement application accepted by Shenzhen Stock Exchange
Shennan Circuits' application to issue shares to specific investors was accepted by the Shenzhen Stock Exchange on August 25. The offering plans to issue no more than 204 million shares, with expected proceeds of 4.882 billion yuan. The sponsors are Guotai Haitong Securities and AVIC Securities.
Summary of announcements from Shanghai and Shenzhen listed companies on the evening of August 26: multiple firms disclose half-year reports and major matters
On the evening of August 26, multiple listed companies on the Shanghai and Shenzhen stock exchanges released announcements covering half-year results, major contracts, and buybacks. Jiama Electric said its nuclear power business is now at full capacity. Kingwon Electronics expects to make more progress with cloud server vendors by 2027. Hengtong Optic-Electric has been preliminarily selected for a 1.831 billion yuan marine energy project. Dapu Micro signed a 515 million US dollar enterprise-grade PCIe SSD sales order. On the earnings front, Northern Copper reported first-half net profit of 1.396 billion yuan, up 186.61 percent year on year. Hengtong Optic-Electric posted net profit of 3.12 billion yuan, up 93.38 percent. Hua Hong Hongli reported net profit of 399 million yuan, up 436.69 percent. Lianxun Instruments posted net profit of 567 million yuan, up 903 percent. New China Life reported net profit of 22.793 billion yuan, up 54 percent. Shennan Circuits posted net profit of 2.251 billion yuan, up 65.55 percent. Tsingtao Brewery reported net profit of 3.92 billion yuan, up 0.4 percent. Yili Group posted net profit of 5.759 billion yuan, down 20.02 percent. China CITIC Bank reported net profit of 37.602 billion yuan, up 3.08 percent. Conch Cement posted net profit of 2.527 billion yuan, down 42.76 percent. In addition, Yili Group plans to buy back shares worth between 1 billion and 2 billion yuan for cancellation.
Multiple listed companies released positive announcements on the evening of August 26
On the evening of August 26, multiple listed companies released positive announcements. Jiamusi Electric Machine said its nuclear power business is currently at full production, and the new multifunctional high-temperature high-pressure nuclear main pump full-flow test bench project, with an investment of 381 million yuan, has been completed, with comprehensive testing capability leading in China. Kinwong Electronic expects to make more positive progress with North American hyperscale cloud provider customers by 2027. Hengtong Optic-Electric's net profit in the first half of the year rose 93.38% year on year, and revenue from its optical communications business grew more than 130% year on year. Hua Hong Semiconductor's net profit in the first half of the year rose 436.69% year on year, with shipments hitting a record high. Lianxun Instruments' net profit in the first half of the year rose 903% year on year, and it plans to transfer 4.8 shares for every 10 shares from capital reserve. New China Life Insurance's net profit in the first half of the year rose 54% year on year, and it plans to pay a cash dividend of 0.73 yuan per share. Shennan Circuits' net profit in the first half of the year was 2.251 billion yuan, up 65.55% year on year. Yili Group plans to buy back shares for no less than 1 billion yuan and no more than 2 billion yuan. Leaderdrive's net profit in the first half of the year rose 31.25% year on year, and its embodied intelligent robot business grew substantially in scale. Northern Copper's net profit in the first half of the year was 1.396 billion yuan, up 186.61% year on year. Dapu Microelectronics signed a sales order for enterprise-grade PCIe SSDs worth 515 million US dollars, accounting for 152.70% of its 2025 main business revenue. COSCO Shipping Specialized Carriers' net profit in the first half of the year was 1.371 billion yuan, up 66.24% year on year.
Xinrui Shares' Acquisition of Huilian Electronics Reaches Substantive Progress, Consolidation Begins in August
Xinrui Shares' acquisition of Huilian Electronics has reached a substantive milestone. The company has completed the first payment under the equity purchase agreement, and all legacy issues such as the pledge of the target equity and related-party debts have been fully resolved. Huilian Electronics will be formally consolidated into the company's financial statements starting in August. Huilian Electronics specializes in the field of precision cutting tools for printed circuit boards, mastering core technologies such as mature ultra-fine micro-drills and diamond coatings. Its customers include leading PCB manufacturers like Avary Holding and Shennan Circuits, and it is a significant beneficiary of the industry boom in high-end circuit boards for AI servers. This acquisition is a core strategic move for Xinrui Shares to expand its electronic precision consumables business, with strong synergies with the company's existing cemented carbide main business. The market also views this acquisition as an important step for the company to open up a second growth curve. According to the acquisition agreement, Xinrui Shares paid 79.6528 million yuan in special release funds to the seller Xu Meihua on July 30. The seller settled the corresponding debts on the same day and simultaneously completed all procedures for the cancellation of the equity pledge. Currently, the target equity is free from any rights restrictions such as mortgages, pledges, or freezes. Meanwhile, all related-party debts have been fully settled, with the main sellers—Henan Jiurixu Enterprise Management Company, Xu Meihua, and Li Lingxiang—instructing Xinrui Shares to pay the target company from the equity transfer payments they are due to receive. Currently, the transaction parties are handling relevant tax and industrial and commercial registration change procedures.
Electronic Fabric Prices Post Largest Single-Month Gain This Year, PCB Concept Stocks Surge Across the Board
On August 4, the A-share PCB concept sector rallied across the board. Zhongjing Electronics hit its daily limit up, while Dongshan Precision, Shengyi Technology, Shennan Circuits, Dongcai Technology, and Tongguan Copper Foil all rose more than 5%. Newly listed Jialichuang surged over 177% intraday on its debut. The rally was directly catalyzed by rising upstream substrate costs. A Citi research report shows that electronic fabric prices recorded their largest single-month increase this year in August, with average prices for the 1080, 2116, and 7628 series rising 17% to 18%, and cumulative gains this year reaching 118% to 165%. AI power supplies are squeezing traditional supply, and costs are being passed on to copper-clad laminates. The spot price including tax for laminates from industry leader Kingboard Laminates may rise another 10% to 15% in August, with the year-to-date average price nearly doubling. China Securities believes that, driven by AI, the global PCB industry is entering a new upward cycle. In 2025, the PCB market space for GPU and ASIC servers has already exceeded 40 billion yuan, and it will surpass 90 billion yuan in 2026, doubling the growth rate. However, capacity expansion is constrained by multiple factors, and the supply-demand balance is unlikely to reverse in the short term.
Shanghai Composite falls as China GDP slowdown hits tech stocks
On the 15th, the Shanghai Composite Index fell on the mainland Chinese stock market, closing down 0.29% from the previous day at 3,955.58 points. The Shenzhen Component Index dropped 0.97% to 14,779.40 points. China's April-June real GDP growth slowed to 4.3%, missing market expectations, and economic concerns weighed on sentiment. By sector, semiconductors and electronic components declined, with notable drops in tech stocks such as BOE Technology Group, Shennan Circuits, Unigroup Guoxin Microelectronics, and Dawning Information Industry. Meanwhile, medical services, baijiu, and tourism retail were bought, and Giant Network Group hit its daily limit up.
002558.CS · Demand · Positive Giant Network Group hit its daily limit up as medical services, baijiu, and tourism retail were bought, indicating positive demand for its gaming/entertainment services.
002049.CS · Demand · Negative GDP slowdown and economic concerns hurt demand for semiconductors, impacting Unigroup Guoxin Microelectronics.
002916.CS · Demand · Negative GDP slowdown and economic concerns weigh on demand for electronic components, dragging down Shennan Circuits.
200725.CS · Demand · Negative GDP slowdown and economic concerns weigh on demand for semiconductors and electronic components, impacting BOE Tech Group.
603019.CG · Demand · Negative China's GDP slowdown and economic concerns weigh on demand for tech products, dragging down Dawning Information Industry.
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