Victory Giant (300476.SZ): AI PCB toward next-generation platform; capacity expansion on strong order growth and latest technology; Buy

We remain constructive on Victory Giant's leading position in AI PCB and continuous capacity expansion to support sustainable growth ahead. For 3Q26E, we expect net income of Rmb1.6bn, up ~3% QoQ, supported by gradual product migration to the new AI platform and rising AI PCB contribution. Due to the product transition, we expect stronger QoQ revenue growth in 4Q26E, driven by accelerated shipment ramp-up and dollar content increase from specification upgrades (high-end CCL, higher-layer-count PCB). We stay positive given (1) AI infrastructure ramp-up, (2) AI PCB specification upgrades, (3) rising PCB usage in AI servers replacing copper cables, (4) customer expansion toward ASIC AI servers, and (5) R&D and capex commitments. The company continues MLPCB/HDI capacity expansion and ramp-up of Factories 10 and 11 in Huizhou, and is building a new Huizhou plant for high-speed optical transceiver mSAP PCB and CoWop PCB. We cut 2026-30E earnings by 4%/1%/1%/1%/1% on lower AI PCB revenue from