Shenghong Technology's stock surged 6.91% during intraday trading on Friday, reflecting strong investor confidence in the company's recent performance and future prospects.
The significant price movement follows the company's disclosure of robust first-quarter results, which showed revenue growth of 27.99% year-over-year to 5.519 billion yuan and a net profit increase of 39.95% to 1.288 billion yuan. The company's gross margin improved to 34.46%, continuing an upward trend despite industry cost pressures, driven by ongoing optimization of its AI PCB product mix and an increasing share of high-end products.
Market optimism is further fueled by the company's strategic positioning with leading AI customers, including NVIDIA, AMD, Intel, Google, Microsoft, and Amazon. Key products such as NVIDIA Compute, Midplane, Switch, and LPU are scheduled for gradual delivery starting in the second quarter, with all products expected to enter revenue recognition by the third quarter. The upcoming next-generation Rubin PCBs, featuring larger board area, higher layer counts, and more complex processes, represent a potential new core growth driver for the company.
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