China PCB: Kinwong (603228.SS / 3228.HK): PCB for AI servers and Optical module in expansion with growing capacity

We visited Kinwong's (603228.SS / 3228.HK, not covered) management in Shenzhen. Management remains positive about its growth trajectory, driven by PCBs for AI servers and optical modules along with ongoing capacity expansion, echoing our positive view on AI server PCB. We had raised our global AI PCB TAM to reflect the ramp-up of AI server racks and PCB specification upgrades with the adoption of next-generation high-end AI servers, and we remain constructive on AI PCB/CCL. Kinwong is a leading global PCB supplier covering multilayer PCBs, SLPs, thick copper PCBs, high-frequency high-speed PCBs, metal-based PCBs, double-layer/multilayer flexible PCBs, high density flexible PCBs, HDI PCBs and rigid-flex PCBs, used in AI servers, optical modules, automotive, communication, PCs and smart terminals, with production sites across China and Thailand. The company is a major PCB supplier in the latest AI server racks' switch boards and midplanes, and its high-end HDI is also in capacity expansi