沪电股份 (002463.SZ)｜苏州实地调研最新见闻：产品研发布局与定价策略分析

WUS Printed Circuit (002463.SZ) What’s New from Suzhou Tech Tour – Product Development and PriceStrategy CITI’S TAKE Buy We visited WUS in Suzhou on 3rdJuly. Key takeaways include: (1) WUS isthe main supplier of 1.6T switch for several clients. Research for 3.2T techis ongoing, awaiting 2028 standards. Optical module boards are just formSAP process practice, not a main target. For CoWoP, competitors have ahead start, but WUS is aggressively catching up in R&D. (2) AI-relatedclients do not force price cuts and pricing is driven mostly by vendorcompetition. AI PCB have high margins, so material costs are manageablefor WUS. Meanwhile, WUS pushes for domestic materials acceptance tolower BOM costs. (3) Thailand power grid is unreliable with frequentoutages, as such WUS’s major capacity expansions will remain strictly inmainland China for the foreseeable future. (4) WUS partners closely withmaterial and equipment vendors to set future standards. Price (03 Jul 26 15:00)Rmb135.350Target priceRmb189.000Expected share pricereturn39.6%Expected dividend yield0.4%Expected total return40.0%Market CapRmb260,463MUS$38,477M Karen HuangAC+852-2501-2755karen.xw.huang@citi.com Capacity Layout and Construction Progress.Mgmt. indicated that several majorprojects were under way (1) the 3.3bn infrastructure project will add capacity by 2027.(2) the 5.5bn project Ph1 is nearing completion. (3) Huangshi Plant Ph3 is advancingsmoothly. (4) Thailand Datacom Ph2 expansion will start ramp up in July 2026. Mgmt.emphasized WUS’s strategy is to build factories early, while flexibly timing equipmentpurchases to match actual market demand. Kyna Wong+852-2868-7820kyna.wong@citi.com Kevin Chen+852-2501-2125kevin.y.chen@citi.com Product and technology development.WUS is running at full capacity. AI datacomproduct is the top priority for WUS and WUS is the main supplier of 1.6T switch forseveral clients. Research for 3.2T tech is ongoing, awaiting 2028 standards. Opticalmodule boards are just for mSAP process practice, not a main target. For CoWoP,competitors have a head start, but WUS is aggressively catching up in R&D. Directconversion between auto and datacom boards is not possible due to differentprocesses, and they only overlap in some domain control products. Price strategy.Mgmt. indicated that AI-related clients do not force price cuts andpricing is driven mostly by vendor competition. High-end raw materials are tight, butWUS purchases early to prevent shortages. AI datacom boards have high margins, somaterial costs are manageable for WUS. Meanwhile, WUS pushes for domesticmaterials acceptance to lower BOM costs. Mgmt. also emphasized that WUS will notraise prices just given tight capacity as WUS values long-term client relationships. Forautomotive PCB, WUS’s response depends on the tier. If costs rise for low-endboards, WUS will ask clients for a price hike. If they refuse, WUS shifts that capacityto AI. High-end auto boards can absorb minor cost increases internally. Advantages.WUS’s HQ has two 110kV substations providing over 120,000 kVA. Thisdual-circuit setup guarantees 24/7 stable power. This global-leading power stabilitymeans WUS will not worry about outages disrupting its high-energy continuousmanufacturing. Mgmt. indicated that Thailand power grid is unreliable with frequent See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Not for distribution in the People's Republic of China, excluding the Hong Kong Special Administrative Region and QualifiedForeign Institutional Investors. outages, as such WUS’s major capacity expansions will remain strictly in mainland China for the foreseeable future. Mgmt. alsoindicates that WUS partners closely with material and equipment vendors to set future standards. WUS Printed Circuit Valuation We apply 30x 2027E P/E to derive our target price of Rmb189.0 for WUS, which we believe is justified by an 86% 2026-28Eearnings CAGR driven by: 1) robust growth backed by GenAI-related PCB demand during 2026-2028E; 2) potential ASP/GMimprovement thanks to a favorable product mix; and 3) strong execution and delivery capabilities to help sustain a robust GM. Risks Key downside risks that could impede the stock from reaching our TP include: (1) less-than-expected share allocation in GenAI-related PCB, (2) pricing and competition pressure in automotive supply chain; (3) CSP capex reduction and weak economylowering demand; (4) increasing materials costs; and (5) US-China geopolitical risk. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICATION The research analysts primarily responsible for the preparation and content of this research report are either (i) designatedby “AC” in the author block or (ii) listed in bold alongside content which is attribut