Victory Giant(巨胜科技)2026年第二季度表现放缓 第三季度业绩有望回升

more new customers; reiterate BuyReiterateRating:BUYIPO:455.00CNYIPrice:319.55CNY Likelyslow2Q,momentumtoresumefrom3Q platform ramp-up. Based on our check, computing boards only started official ramp-upfrom June,after a small pilot run in April.We note CCL cost pressure at Al server is limited, but the traditional sector (35-40% sales) faced margin pressure due to FR-4price hike (traditional e-glass shortage). Although there will be a potential short-termhiccup,we expect earningsmomentumtopick upfrom3Q26, followingagradual rampup of higher value Vera Rubin platform and higher layer TPU orders kick-off.Backplane still in progress, new customers to mitigate riskSince end-2025, there has been ongoing debate on whether the backplane will be KeyChanges adopted on the Rubin Ultra platform. In our view, the manufacturing process is not easy, due to significantly rising layer count (from 7OL+ to 10OL+) and more advanced CCLspec. The supply chain has been and is still under testing to meet Rubin Ultra's inter-connection requirement. We believe it is still too early to project the final spec, and theconcern about a potential delay will linger given Victory Giant's aggressive capacityexpansion. However, we believe the company will be able to manage the risk via newcustomer gains, incl. Us ASiC customer, domestic ones, as well as optical transceivercustomers, thanks to its strong know-how and well-prepared capacity across HDI, HLC,and mSAP.Cut 2026Eearnings,maintain P0ofCNY455,reiterateBuy kexin.zhu@bofa.comRobert Cheng >>Research AnalystMerrill Lynch (Taiwan) robert.cheng@bofa.comDoris Kao >>Research AnalystMerrill Lynch (Taiwan) doris.kao@bofa.com Welower Victory Giant's 2026E earnings by6% to reflecta potentially slow2Q.Wemaintain our2027-28E earnings largely unchanged, and ourPO remains at CNY455(30x 2027EP/E).We reiterate Buy on Victory Giant's dominant position in Nvidia Al serverPCB and continuous efforts in customer diversification.Estimates (Dec) (CNY)2024A2025A2026E2027E2028E Al: artificial intelligenceCCL: copper clad laminatesPCB: printed circuit boardTPU: tensor processing unitHDl:high-density interconnectHLC: high layer countmSAP: modified semi-additiveprocessFR-4: flame retardant, grade 4 This research report provides general information only. No part of this report may be usedorreproducedorquotedinanymannerwhatsoeverinTaiwanbythepressorotherpersonswithouttheexpresswrittenconsentofBofASecurities.>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.Refer to'Other Important Disclosures'for information on certain BofASecurities entities that take responsibility for the information herein in particular jurisdictions.BofASecuritiesdoesandseekstodobusinesswithissuerscoveredinitsresearch reports.Asa result,investorsshouldbeawarethat thefirm mayhaveaconflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 9 to 11. Analyst Certification on page 6. PriceObjective Basis/Risk on page 6.12987383 iQprofile " Victory Giant(A)Key Income Statement Data (Dec)2024A2025A IT Hardware Victory Giant Technology, established in 2006,is a globally leading supplier of high-density printed circuit board,offering a comprehensive range of PCB products. Thecompany's products are widely used in servers (e.g., Nvidia,AMD, Amazon, Microsoft), telecoms (e.g., Cisco, ZTE), autos(e.g, Tesla, Bosch), and consumer electronics (e.g-Samsung, Xiaomi). The company is actively expanding intofast-growing areas such as Al computing, high-end servers.optical transmission etc. We have a Buy rating on Victory Giant, as we see the company is well-positioned to capture the ongoing PCBcontent value upside at Al server, thanks to its industryleading position especially at Nvidia platform. Stock Data Price to Book Value7.2x Summary of PCB content value and spec across different Nvidia platform H100GB200/GB300 Victory Giant's forward P/E with -1/+1 standard deviation Exhibit 5: We model 66% earnings CAGR in 2026-28EVictory Giant's quarterly income statement, 2025-28E Victory Giant's quarterly income statement, 2025-28E Victory Giant (XENEF) We set our PO at CNY455,based on 30x 2027E P/E. Our 30x P/E is around 0.5SD above business visibility and a diversified customer base. 3Ox is also at the higher range ofChina AI server PCB peers' 2027E trading P/E, justified by Victory Giant's leadingindustry position. bottleneck that caps server rack shipment, and (5) worsened US/China disputes GPU platform upgrade, (3) further market share gain at the expense of competitors, and(5) eased US/China disputes. AnalystCertificationI, Katherine Zhu, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject securities and issuers. I alsocertify that no part of my compens