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 the sustainable growth ahead. For the upcoming 3Q, we expect net income to deliver QoQ growth and modest YoY growth, supported by gradual product migration to the new AI platform and rising contribution from AI PCB. Due to the impact from product transition, we expect to see stronger revenue QoQ growth in 4Q26E, driven by accelerated shipment ramp up and dollar content increase on the specification upgrade (high-end CCL, PCB with higher layer counts). Victory Giant is continuing the capacity expansion of its MLPCB/HDI and gradual ramp up of the new capacity of Factory 10 and 11 in Huizhou, while also working on a new factory in Huizhou for high optical transceivers mSAP PCB and CoWoS PCB products. We remain 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 towar