As 2026 begins, the fervor for "A+H" listings continues unabated. On January 1, 2026, Shenzhen Kinwong Electronic, a leading domestic high-end PCB manufacturer, submitted its preliminary prospectus to the Hong Kong Stock Exchange for a main board listing, with CITIC Securities, BofA Securities, and Guolian Securities acting as joint sponsors. Founded in 1993, Shenzhen Kinwong Electronic is a globally leading manufacturer of PCB products. Leveraging its high-quality PCBs and advanced intelligent manufacturing capabilities, the company has established itself as a global leader in the automotive electronics PCB industry and is one of the few suppliers of core components for AI computing infrastructure. The company was already listed on the main board of the Shanghai Stock Exchange in January 2017. As of the market close on January 8, 2026, its share price was 77.12 yuan, giving it a market capitalization of 75.2 billion yuan. A successful Hong Kong listing would create an "A+H" share structure for Shenzhen Kinwong Electronic, facilitating a strategic leap in the capital markets from a "domestic leader" to a "global player."
According to Wind data, 2025 saw 19 A-share listed companies successfully list in the Hong Kong market via the A+H model, a staggering 533% increase compared to just 3 companies in 2024. This surge underscores the growing corporate preference for a dual-primary listing strategy. Market analysts point to continuous policy-driven tailwinds, such as deepening regulatory cooperation between the two markets, improvements in Hong Kong market liquidity, and a narrowing of the A-H share premium, which have alleviated concerns about valuation discounts and may further fuel the A+H listing wave. Against this backdrop of fervent A+H listings, how will Shenzhen Kinwong Electronic script its development narrative in the Hong Kong market?
Automotive Electronics PCB Leader vs. Short-Term Profit Growth Pressure According to CIC data, based on 2024 revenue, Shenzhen Kinwong Electronic is the world's largest supplier of PCBs for automotive electronics. Seven of the global top ten Tier 1 automotive suppliers are its customers, and its PCB products are widely used in vehicles produced by the world's top ten automotive groups. The company has the capability to supply all the PCBs required for a single vehicle. After over 30 years of development, the company's end markets have expanded from consumer electronics and industrial control to automotive electronics, and more recently into cutting-edge fields like AI computing, next-generation communications, AIoT, drones, and robotics. This has culminated in a "1+1+N" business model: one pillar business (automotive electronics), one key growth business (communications and data infrastructure), and a portfolio of N high-potential businesses (covering smart terminals, industrial control, etc.).
Concurrently, Shenzhen Kinwong Electronic's PCB product portfolio is notably diverse, encompassing the manufacturing and supply of single/double-sided PCBs, multi-layer PCBs, HDI PCBs, FPCs, MPCBs, and rigid-flex boards. During the track record period, the company has served over 700 global customers, with products exported to 53 countries and regions. This vast customer base underpins the company's leading financial stature—boasting revenue exceeding 10 billion yuan with consistent and steady growth. Prospectus data shows revenues of 10.757 billion yuan, 12.659 billion yuan, and 11.083 billion yuan for 2023, 2024, and the first three quarters of 2025, respectively, representing year-on-year growth of 17.68% in 2024 and 22% for the first three quarters of 2025. Examining the revenue structure, the automotive electronics segment remains the primary revenue driver, contributing 5.066 billion yuan (45.7% of total revenue) in Q3 2025. During the same period, smart terminals accounted for 24.7%, industrial control and medical equipment for 14.2%, and communications and data infrastructure for 9.5%, indicating the gradual formation of the "1+1+N" business model.
However, this is juxtaposed with the company's short-term profit growth coming under pressure, which represents a notable shortcoming for this PCB leader. Net profits for 2023, 2024, and the first three quarters of 2025 were 911 million yuan, 1.160 billion yuan, and 961 million yuan, respectively. While year-on-year growth was 27.3% in 2024, it slowed significantly to 7.25% for the first three quarters of 2025. This deceleration is likely linked to the company's continuously declining gross profit margin. The prospectus reveals gross profit margins of 23.2%, 22.7%, and 21.6% for 2023, 2024, and the first three quarters of 2025, respectively, showing a year-on-year decline. The company attributed the margin contraction in the first three quarters of 2025 primarily to high and volatile raw material prices, production ramp-up at new facilities, and strategic investments in high-end capacity. This highlights the current "scissors difference" between revenue growth and efficiency gains at Shenzhen Kinwong Electronic, where profit growth lags behind revenue growth, thereby pressuring the gross margin. Naturally, this is partly a conscious strategic choice, representing unavoidable growing pains associated with strategic expansion and product portfolio optimization.
Positioning in the "AI+" Arena: Can It Unlock a New Growth Cycle? Reportedly, as the AI era accelerates, downstream applications like automotive electronics, smart terminals, and industrial control are also rapidly undergoing intelligent upgrades, deeply evolving towards AI edge applications. These trends collectively inject strong growth momentum into the PCB industry and drive the continued expansion of the overall market. However, the current growth in the PCB industry is not a broad-based surge but rather a structural opportunity driven by two high-end segments: AI computing power and automotive electronics. According to CIC data, the global PCB market size, measured by revenue, is projected to grow from $75 billion in 2024 to $105.2 billion by 2030, representing a compound annual growth rate (CAGR) of 5.8%. Within this, AI infrastructure is in an explosive investment cycle. The increasing demand from AI servers for high-speed, high-layer-count, high-density interconnect (HDI), and other high-end PCBs will further propel the evolution of data infrastructure PCBs towards high-end, high-value-added products. According to CIC, the global AI server PCB market size by revenue is forecast to grow from $3.5 billion in 2024 to $10.8 billion by 2030, achieving a CAGR of 20.7% from 2024 to 2030.
The waves of automotive electrification and intelligentization are also driving sustained growth in the automotive electronics PCB market. CIC data indicates that the global automotive electronics PCB market size by revenue is expected to reach $12.2 billion by 2030, with a CAGR of 4.8% from 2024 to 2030. It is noteworthy that beyond being a global leader in automotive electronics PCBs, Shenzhen Kinwong Electronic is also one of the few manufacturers supplying PCB products to leading global AI computing infrastructure companies. Currently, the company has commenced mass production of high-end PCBs applicable in areas like AI computing infrastructure, including PCBs with over 40 layers, 6-step 22-layer HDI PCBs, 14-layer HDI PCBs utilizing mSAP technology, and multi-layer PTFE FPCs. Furthermore, the company possesses the manufacturing capability for PCBs exceeding 70 layers, 9-step 28-layer HDI PCBs, 12-layer any-layer rigid-flex boards, and high-speed FPCs.
In summary, Shenzhen Kinwong Electronic demonstrates robust growth potential, underpinned by its leading position in automotive electronics and successful entry into the AI sector. The core of its investment value lies in whether it can successfully translate its solid foundation and leading advantages in automotive electronics into market share and profits within emerging markets like AI computing. This implies that even though Shenzhen Kinwong Electronic may benefit from potential industry valuation re-ratings, investors must also pay attention to the associated growth risks. While the PCB industry is currently benefiting from the AI and new energy vehicle booms, attracting significant market attention, investors should also consider risks such as potential intensification of competition from industry capacity expansion, uncertainties in high-end technology R&D and customer certification processes, and fluctuations in raw material prices.
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