The Zhitong Finance App learned that Shenghong Technology (02476) fell nearly 14% in early trading. As of press release, it decreased by 10.66% to HK$106.4, with a turnover of HK$424 million.

According to a research report released by HSBC, Shenghong Technology is a key PCB supplier for Nvidia and Google, benefiting from the demand for artificial intelligence server PCBs. The bank predicts a compound annual profit growth rate of 58% from 2026 to 2028, but this is lower than market expectations. According to the bank, results for the third quarter fell short of market expectations, mainly due to delays in shipments from major customers, leading to a shift in costs and backward revenue recognition; profits are expected to recover strongly in the fourth quarter as Nvidia Vera Rubin climbs downhill and improved yield.

The bank pointed out that A/H shares have been adjusted by about 55% and 61% respectively since the beginning of the year, outperforming the market, reflecting AI concerns, co-packaged optics (CPO) with higher data transmission density or reducing the value of AI server PCBs, and risks such as overcapacity in 2027. The bank believes that the risk is broadly reflected in the stock price and has been included in conservative profit forecasts. For the first time, coverage gave a “buy” rating.

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