Interpretation of IPOs | Jingwang Electronics (603228.SH): Stock prices bucked the trend and reached a record high. Marginal profit repair or an inflection point for profit acceleration?

On September 9, the stock price of Jingwang Electronics (603228.SH) reached a record high, with a price of 113.56 yuan per share, which stabilized the company's total market value at 110 billion yuan. Such strong stock price performance means “standing out from the crowd”. After all, since July, the global AI computing power hardware chain has been recovering overall, and internal segmentation within the sector has intensified. Jingwang Electronics has not fallen to a new high, showing resilience against the trend.

Meanwhile, two days before the stock price reached a record high, Jingwang Electronics' IPO journey to Hong Kong ushered in the latest developments. It passed the Hong Kong Stock Exchange main board listing hearing on September 7. CITIC Securities, Bank of America Securities, and League of Nations Securities International are co-sponsors.

Jingwang Electronics said that after deducting issuance fees, the funds raised during the Hong Kong listing will mainly be used to expand and upgrade production facilities for high-value-added products, strengthen next-generation electronic information technology research and development reserves, repay part of interest-bearing bank loans, and supplement working capital and general corporate use.

However, judging from performance, Jingwang Electronics handed over a questionnaire on “increasing revenue without increasing profit” in the first half of 2026. During the reporting period, the company's revenue was 8.611 billion yuan, up 21.37% year on year, and non-net profit deducted from mother was about 466 million yuan, down 13.33% year on year.

Under the “increase in revenue without increasing profit” performance questionnaire, why can Jingwang Electronics's stock price buck the trend and reach new highs?

The revenue side continues to grow rapidly, and the profit side releases pressure

Jingwang Electronics, which has been deeply involved in the PCB field for more than 30 years, is already the world's largest supplier of automotive electronics PCBs. According to Insight Consulting data, the company accounts for 10.6% of the global automotive electronics PCB market in terms of revenue in 2025, ranking first in the world.

While occupying a leading position in the automotive electronics PCB field, Jingwang Electronics strategically focuses on the AI computing field, forming a “1+1+N” business model, namely 1 pillar business (automotive electronics), 1 key development business (communication and data infrastructure), and N high-potential business portfolios (covering smart devices, industrial control, etc.).

In 2025, Jingwang Electronics's revenue from PCB product sales accounted for 93.9%, of which automotive electronics revenue accounted for 45.4%, smart devices accounted for 24.2%, industrial control and medical equipment accounted for 13.9%, and communications and infrastructure accounted for 10.4%.

In terms of performance, the revenue side of Jingwang Electronics has shown continuous rapid growth since 2024. According to the data, from 2024 to the first half of 2026, Jingwang Electronics' revenue was 12.659 billion yuan, 15.308 billion yuan, and 8.611 billion yuan respectively, with year-on-year growth rates of 17.68%, 20.92%, and 21.37% respectively.

The rapid growth on the revenue side is mainly due to three reasons: the first is the concentrated release of production capacity. High-end bases such as Jinwan in Zhuhai and Jishui in Jiangxi have been in production since 2024, and capacity utilization has increased significantly, providing basic energy for revenue growth.

The second is two-wheel drive on the demand side. Automotive electronics benefited from the penetration of new energy vehicles and advanced smart driving, and the value of bicycle PCBs increased from about 800 yuan to 5,000 yuan, contributing to a steady increase. At the same time, communication and data infrastructure benefited from the explosion of AI computing power, and the batch delivery of AI server PCBs and mass production of 800G/1.6T optical modules contributed to significant new growth.

Third, product-side structural upgrades have led to a “sharp rise in volume and price.” The share of high-end HDI and high-multi-layer PCBs continues to rise, and the unit price of high-end products is stronger, further amplifying revenue growth.

However, the rapid growth of the revenue side was not smoothly transmitted. From 2024 to the first half of 2026, Jingwang Electronics' net profit deducted from mother was 1,054 million yuan, 1,021 million yuan, and 466 million yuan respectively. The year-on-year growth rates were 18.11%, -3.15%, and -13.33%, respectively. The profit side changed from increase to decline and the decline increased since 2025.

There are three main reasons for weak profit side growth: the first is that demand for AI computing power drives upstream price increases such as copper clad plates, copper foil, and electronic glass fiber cloth, while price adjustments for PCB products lag behind raw materials. In addition, the company is in the customer introduction period to enter AI servers and 800G/1.6T optical modules. Early order pricing is relatively cautious, and gross margin continues to be under pressure. The overall gross margin fell from 22.73% in 2024 to 21.59% in 2025, and further reduced to 20.22% in the first half of 2026.

Second, the scale effect was not fully released during the climbing period in Jinwan, Thailand, and high-level HDI/high-tier production capacity; third, production expansion boosted interest-bearing liabilities. Long-term loans in the first half of 2026 increased from 1,864 million yuan at the end of 2025 to 4.602 billion yuan, and financial expenses changed from positive to negative to 157 million yuan, compounded by RMB appreciation and exchange losses of 123 million yuan and government subsidies decreased year-on-year.

It can be seen from this that since 2024, Jingwang Electronics as a whole has been in an expansion and run-in period of “revenue is released first, profits are delayed”: revenue continues to expand with smart car, AI server and optical module orders, but due to rising new production capacity, rising raw material costs, and slow price transmission of some products, the pace of improvement in gross margin and net interest rates has been limited, and profit quality has been suppressed in the short term.

Multiple factors drive the stock price to a new high, and the three major logics support the accelerated realization of profits

The reason behind Jingwang Electronics' recent record high stock price is not due to a single factor, but rather the result of multiple logics.

First, the profit side has ushered in a marginal recovery. Although Jingwang Electronics' revenue for the first half of 2026 was 8.611 billion yuan, up 21.37% year on year, and net profit after deducting non-return to mother was 466 million yuan, down -13.33% year on year. It was still a situation where “revenue did not increase profit” and profit declined at an accelerated pace, but on a quarterly basis, the pressure was mainly in the first quarter, and the profit side had already reached an inflection point in the second quarter.

In the second quarter, Jingwang Electronics' revenue was 4.720 billion yuan, up 25.79% year on year, up 21.26% month on month, and net profit after deducting non-return to mother was 276 million yuan. Although the year-on-year decrease was 9.57%, the margin narrowed, and the month-on-month growth rate reached 45.81%.

Gross margin is a more intuitive inflection point. The overall gross margin for the first half of the year was 20.22%, down 1.18 percentage points from the previous year; while the gross margin for the second quarter was 21.43%, up 2.67 percentage points from month to month, and the net profit margin was 7.79%, up 1.55 percentage points from month to month.

The profit side ushered in marginal repairs mainly because the company's AI servers and 800G/1.6T optical module PCBs were delivered in batches. The revenue of 800G and above optical modules in the second quarter was nearly 1500%, and high-end products accounted for rising margin pressure on some traditional boards; at the same time, the high-end HDI/high-multi-layer and mSAP production line in Jinwan, Zhuhai went from climbing to full production, and scale effects began to dilute depreciation and labor. In addition, the company's profit rate improved sequentially in the second quarter; in addition, the company's profit margin in the second quarter was already included in June. Fix it.

Second, the AI computing power+PCB industry chain continues to boom, and the cost pressure on the industrial chain has begun to shift downward. Thanks to a blowout in demand for computing power, upstream copper clad plates continue to adjust prices. At the end of August, Jiantao Laminate issued the 7th price increase letter of the year. Since the first price adjustment in March, it has continued to raise the prices of FR-4 copper clad plates and semi-cured sheets, and many domestic CCL manufacturers have continued to rise in multiple rounds;

According to some market reports, since September, Panasonic has raised copper-clad plates, and some high-end products have risen by up to 30%, while South Asia Plastics has followed suit by 20% to 25%. The bottom layer is that electronic cloth - electronic yarn - copper foil - resin are simultaneously tight: 7628 electronic cloth will rise all the way up in 2026 from about 9,100 yuan/ton of e-yarn at the beginning of the year. Prices for 7628 cloth in some channels rose by 10% to 20% month-on-month in September. High-end low dielectric/thin cloth is tighter; high-end HVLP copper foil and specialty resins are driven by AI servers and high-frequency high-speed boards to widen the gap.

Due to the number of layers, loss, and high line width/line spacing thresholds, customers are more tolerant of price increases than automobile/consumer boards. After CCL's seven rounds of price adjustments, PCB quotation transmission will gradually shift from “own payment” to downstream transmission. Agencies generally judged that after raw material costs were smooth in the second half of the year, board mills with high-end AI production capacity were more flexible in gross profit. The month-on-month inflection point in Jingwang Electronics' gross margin in the second quarter of 2026 confirmed this transmission expectation.

Looking at the future from the present moment, Jingwang Electronics is expected to shift from “high revenue growth” to “accelerated profit disbursement”. This change in development trend is supported by three major logics. First, automotive electronics are used as ballast stones, and profit recovery is sustainable. According to Insight Consulting's 2025 revenue, the company ranked as the world's largest automotive electronics PCB supplier, with a market share of 10.6%, and the overall PCB ranking 11th in the world; 8 of the top ten Tier 1 companies in the world are customers, and the products cover all core vehicle scenarios such as millimeter/lidar, domain control, cockpit, and charging and distribution.

With new energy vehicle domain control, smart driving radar, and the increase in the value of bicycle PCBs, the automobile business is expected to maintain double-digit growth; in the first half of the year, the sector promoted profit recovery through the introduction of new customers, increased stock share, and product structure optimization. Profits in June have now improved, and the proportion of high-end products is expected to continue in the future.

Second, Communications and Digital Communications are expected to provide maximum profit flexibility. At present, Jingwang Electronics' AI server high-end boards have been supplied in batches to global AI infrastructure customers, and modern products have been mass-produced, and next-generation products have been certified; the company's optical modules have already been built in 3 mSAP, August 4, and will reach 5 within the year. All high-end HDI production is expected to reach 800,000 m2/year, 800G/1.6T has been delivered in batches. The revenue ratio of 800G and above optical modules in the second quarter is close to 1500%; subsequent pre-development and introduction of 1.6T, 3.2T/NPO, etc., and the AI factory is fully produced, and the AI factory is fully produced. Will put the “quantity” “Increase” translates into structural growth with higher gross profit.

Furthermore, H share fund-raising and high-end production capacity construction form a closed capital-delivery loop. The capital was raised to expand and upgrade high-end production capacity in Jinwan, Zhuhai, Thailand, etc., strengthen AI and high-level/HDI research and development, repay some bank loans, and supplement working capital. Long-term loans in the first half of 2026 increased from 1,864 billion yuan at the end of 2025 to 4.602 billion yuan. After H share capital raising is in place, the capital structure can be optimized and interest expenses reduced. Jinwan undertakes high-end domestic AI boards and high multi-layer systems. Thailand targets overseas AI servers/data centers, automotive electronics and industrial control. It has 40 or more layers of ultra-high multi-layer, high-multi-layer and HDI capabilities. The release of production capacity is in line with the rise in AI orders, which is expected to gradually turn early depreciation and pre-cost pressure into profit release.

From this perspective, with the support of the above three logics, the accelerated cashing of Jingwang Electronics' subsequent profits will be a definite event. Investors should note, however, that although the company's stock price bucked the trend and rose more than 80% in two months to a record high, this sharp rise against the trend can easily cause a trade-level correction after short-term benefits are realized, and the H-share listing may be a turning point.