A-share subscription | Chaoying Electronics (603175.SH) starts subscription and has established stable cooperation with new energy car manufacturers such as Tesla.

On October 15th, Chao Ying Electronics (603175.SH) started its IPO, with an issue price of 17.08 yuan per share and a subscription limit of 12,500 shares. The price-to-earnings ratio is 28.64 times, and it is listed on the Shanghai Stock Exchange with Minsheng Securities as its sponsoring institution. According to the prospectus, Chao Ying Electronics' main business is the research, development, production, and sales of printed circuit boards. Since its establishment, the company's main business has not changed. The company's products are widely used in the fields of automotive electronics, displays, storage, consumer electronics, and communications. The company focuses on automotive electronic PCBs and is one of the few companies in China with the production capacity for multi-stage HDI and any-layer interconnection HDI automotive electronic boards. It has established stable cooperation with global Tier 1 automotive component suppliers such as Continental, Valeo, Bosch, and Ampofo, as well as well-known new energy vehicle manufacturers such as Tesla. According to the CPCA's "24th China Electronic Circuit Industry Major Enterprise Revenue List for 2024", the company is ranked 23rd among comprehensive PCB companies. According to NTI (N.T.Information LTD) report, the company was one of the top ten automotive electronic PCB suppliers in the world in 2023, and one of the top five in China. Currently, PCBs are used in almost all electronic products, mainly in the fields of communication, computers, consumer electronics, automotive electronics, servers, industrial control, military aviation, and medical industries. According to Prismark report, the total output value of the global PCB industry in 2024 is $73.565 billion. Since 2006, mainland China has overtaken Japan to become the world's largest PCB production base, with the highest production and output value in the world. According to Prismark report, in 2024, the PCB output value in mainland China accounted for 55.74% of the global PCB total output value. According to Prismark's forecast, the global PCB market will maintain stable growth in the next five years, with a compound annual growth rate of 5.5% from 2024 to 2028, and the global PCB market size will reach $91.113 billion in 2028. In terms of finance, in the years 2022, 2023, and 2024, the company achieved operating income of approximately 3.514 billion yuan, 3.656 billion yuan, and 4.124 billion yuan respectively, with net profits of approximately 141 million yuan, 266 million yuan, and 276 million yuan respectively. Chao Ying Electronics predicts that its operating income for the first nine months of 2025 will increase year-on-year, mainly due to the increase in demand from customers in the communication and storage sectors driven by AI technological innovation and data center upgrades. The company also expects a decrease in net profit for the first nine months of 2025, mainly due to the fact that Chao Ying's new production plant in Thailand is in its early stages and has relatively high production costs, leading to a decrease in the company's main business gross profit margin.