Aohong Electronics Surges 117% in September, Chairman Says Thailand Plant Mass Production Depends on Ramp-Up

Source: Times Weekly | Author: Yuan Jiawei

Aohong Electronics (605058.SH) has emerged as a standout stock in the PCB (Printed Circuit Board) sector, recording a pattern of "9 trading days with 7 limit-ups" in recent sessions.

On the evening of September 23, the company issued its fifth warning notice since September 15. The announcement stated that from September 10 to the close of September 23, Aohong Electronics' share price had accumulated a gain of 97.71% over the past 10 trading days, with an average turnover rate of 12.72% — significantly higher than normal levels. The company warned of excessive market sentiment and irrational speculative trading.

Company Background

Founded in 2005 and listed on the Shanghai Stock Exchange in 2020, Aohong Electronics is a high-tech enterprise specializing in the R&D, production, and sales of high-precision printed circuit boards. The company produces nearly 5.6 million square meters of various PCBs annually and operates three PCB production bases: Aohong Electronics, Haihong Electronics, and Aohong Electronics (Thailand).

Stock Performance

As of the close on September 24, Aohong Electronics' share price reached 60.20 yuan, hitting an all-time high. Since the beginning of September, the stock has surged 117.41%. Meanwhile, the Aohong Convertible Bond (111024.SH) also rose sharply, trading at a 101.3% premium over its face value as of the September 24 close.

According to Wind data, net capital inflow from major investors into Aohong Electronics reached 610 million yuan over the past 10 trading days.

Company Statement on Price Surge

In the aforementioned announcement, Aohong Electronics attributed the recent stock price surge primarily to multiple factors, including market sentiment and short-term capital speculation. The company also clarified the status of its much-watched Thailand production base:

"The Thailand base is currently in the product certification and small-batch production stage, and is not expected to have a significant impact on the company's performance in the near term."

During the company's semi-year performance briefing on September 24, Chen Dinghong, Chairman and General Manager of Aohong Electronics, responded to a Times Weekly reporter (posing as an investor) regarding the overseas factory:

"Overseas factories face practical challenges such as long customer certification cycles,磨合 with local supply chains, and production capacity ramp-up. Large-scale production and meaningful revenue contribution will depend on subsequent market demand and the pace of capacity ramp-up."

Upstream Price Hikes Passed to PCB Manufacturers

The unusual stock movement at Aohong Electronics is closely tied to significant changes in the PCB industry.

Key developments in upstream materials:

• Copper Clad Laminate (CCL) prices continue to rise, with multiple CCL companies issuing price hike notices:
• Panasonic raised prices on some high-end products by up to 30% starting in September.
• Nan Ya Plastics increased CCL prices by 20% to 25% in September.
• On September 22, Jiangxi Hongruixing Technology announced a 10% increase in CCL ex-factory prices.
• CCL leader Kingboard Laminates (01888.HK) has issued seven rounds of price hike notices this year, with cumulative increases on some key products exceeding 100%.
• Electronic yarn, a core upstream material for CCL, has also followed suit. Industry leader China Jushi (600176.SH) raised prices on thick and thin cloth by 15% and 20% respectively in September.

The upstream price surge is now being transmitted to PCB manufacturers. On September 23, A-share PCB concepts led the market rally, with multiple stocks including Aohong Electronics hitting their daily limit-up.

Analyst Views

Guohai Securities noted that as prices for electronic yarn, copper foil, and CCL continue to rise, PCB manufacturers have begun re-quoting. Compared to upstream materials, PCB board makers face a certain time lag in price adjustments. The third quarter of 2026 is expected to be a turning point where product prices, capacity utilization, and order structure all improve.

TF Securities echoed this view, stating that price transmission along the ordinary PCB supply chain from upstream to downstream is expected to materialize in profitability.

In the first half of this year, PCB board makers locked in long-term orders and were unable to pass on upstream cost increases in a timely manner, resulting in CCL manufacturers achieving far higher profit growth than PCB makers. However, with PCB manufacturers now adjusting their quotes, the cost transmission mechanism in the PCB supply chain has been fully unblocked, directly fueling market expectations for improved profitability among PCB firms.

Aohong Electronics: A Typical PCB Play

Aohong Electronics fits the profile of a typical PCB stock: a relatively small market cap, a core PCB business, and marketable themes such as its Thailand base.

Financial highlights from the 2026 semi-annual report:

| Metric | Value | Change | |--------|-------|--------| | Revenue | 773 million yuan | +14.74% YoY | | Net profit attributable to shareholders | 66.30 million yuan | -17.89% YoY | | Core net profit (excluding non-recurring items) | 48.09 million yuan | -38.73% YoY | | Direct material cost as % of total cost | 71.91% | — |

During the performance briefing, Chen Dinghong explained that rising prices of core raw materials such as CCL and copper foil, combined with a lag in passing costs to downstream customers, had temporarily squeezed gross margins.

Short-Term Performance Reversal Unlikely

In its 2026 semi-annual report, Aohong Electronics disclosed that its order book is full. A HDI (High Density Interconnect) technology upgrade project, with a total investment of 135 million yuan, has been successfully completed and put into operation. The project targets downstream applications including automotive electronics, smart terminals, industrial control, and AI server power supplies, supporting the company's ability to take on high-value-added orders.

When asked about specific orders, Chen Dinghong stated:

"Orders in all areas we cover are currently growing. HDI boards and AI server power supply PCBs have already achieved mass production and delivery."

Despite these developments — the completion of the HDI upgrade, the Thailand base entering small-batch certification, and 800G optical module PCBs progressing through sampling — all these projects remain in early commercialization stages. New businesses are not yet sufficient to offset the profit pressure from traditional operations, and a short-term performance turnaround is unlikely.

Product structure: Medium- and low-layer boards still account for a significant portion of Aohong's product mix. Double-sided and multi-layer boards contributed 57.41% of revenue in 2025, while high-end PCB volume has yet to reach scale.

Industry Expert Commentary

Ding Shaojiang, Chief Analyst at GKURC Industrial Economics Think Tank, told Times Weekly:

"The ongoing price surge needs to be viewed with structural differentiation. High-end PCBs for AI servers benefit from NVIDIA's next-generation platform iteration and capacity bottlenecks, with a tight supply-demand balance expected to persist from the second half of 2026 through 2027 — providing a solid foundation for price increases. However, for medium- and low-layer boards, the broad-based rally is nearing its end due to capacity expansion and easing copper prices."

Foreign Exchange Losses Weigh on Profits

Another factor behind the profit decline is the impact of foreign exchange losses. Chen Dinghong explained during the performance briefing:

"Revenue achieved steady growth, mainly driven by increased orders in server power supplies, new energy, and automotive electronics, along with continuous product structure optimization. The decline in profit is primarily due to the company's high proportion of export sales settled in U.S. dollars. The appreciation of the renminbi in the first half of the year resulted in significant foreign exchange losses, which was an important factor affecting this period's profit."

According to the 2026 semi-annual report, Aohong Electronics is actively expanding into overseas high-end markets to avoid intense domestic homogeneous competition. Overseas sales continue to grow, with over 50% of its business coming from international high-end customers.

Chen Dinghong outlined two strategies to address foreign exchange losses:

1. Track and analyze exchange rate trends, strengthen exchange rate risk monitoring and early warning, and continuously optimize the settlement arrangement for foreign currency receipts and payments.
2. Prudently conduct foreign exchange hedging operations to partially offset exchange rate exposure.

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