Shares of Victory Giant Technology (HuiZhou) Co., Ltd. (ASX: 02476) surged more than 5% in trading. At the time of writing, the stock was up 5.57% to HK$379, with a turnover of HK$973 million.

Key Developments and Outlook

According to recent reports, a representative from the company's securities department stated that its Huizhou base primarily focuses on AI PCBs, with new production capacity expected to come online in the second half of the year. Meanwhile, the Thailand base has commenced production of AI product validation boards and is currently mass-producing key products for automotive electronics and power supplies. Due to serving clients in the AI server and premium automotive sectors, product certification and validation cycles are lengthy. The specific timeline for mass production of related new products is not yet clear, but a breakthrough is anticipated as early as the latter half of the year.

Analyst Coverage Initiated

JPMorgan has initiated coverage on Victory Giant Technology with an "Overweight" rating and a 12-month target price of HK$600, effective until June next year. The firm is optimistic about the growth in global demand for PCBs, particularly high-end PCBs, driven by strong artificial intelligence demand and significant increases in content value, alongside specification upgrades for high-performance computing. The bank expects Victory Giant Technology to be a direct beneficiary of Nvidia's platform upgrade cycle, spanning from Blackwell to Rubin/Rubin Ultra and subsequent series.