The controlling shareholder of Huazheng New Material (603186.SH) has sold down its stake as the stock surged, logging four limit-up gains in just seven days. The company disclosed on the evening of June 16th that from June 10th to 16th, controlling shareholder Huali Group reduced its holding by 564,200 shares, lowering its stake from 36.29% to 35.93%. Based on an average share price of 179 yuan during the selling period, Huali Group cashed out over 100 million yuan. On June 17th, Huazheng New Material once again hit the daily upside limit, closing at 226.67 yuan per share, setting consecutive historical highs and pushing its total market value past 35.5 billion yuan. Since rallying from last year's lows, the company's share price has soared more than 900%, with a staggering year-to-date gain of 358%, cementing its status as one of this year's top-performing stocks.

Share sales have intensified across the A-share market in June. The companies facing this wave of selling are predominantly high-flyers that have seen massive gains, concentrated in hot sectors like AI computing, semiconductors, and new energy. The printed circuit board (PCB) sector, represented by Huazheng New Material, is a prime example. Preliminary statistics based on Wind data show that in June alone, seven PCB stocks (classified by Shenwan industry standards) have either completed share reductions or have plans pending. A rough calculation suggests the total cash proceeds from these sales will exceed 1.2 billion yuan. Among these seven stocks, five have seen their prices multiply by tenfold, while the other two have more than doubled.

Seven High-Flying PCB Stocks See Concentrated Selling

Wind data indicates that among the seven high-performing PCB stocks, four—including Huazheng New Material—are either in the process of selling or have completed their sales, collectively cashing out nearly 900 million yuan. For instance, Zhongying Technology (300936.SZ) recently announced that Zhongying Huicai, an acting-in-concert party of its controlling shareholder and actual controller, sold 218,800 shares between May 27th and June 15th at prices ranging from 92 yuan to 118.57 yuan per share, totaling 22.3023 million yuan.

Xiehe Electronics (605258.SH) disclosed on June 16th that from June 2nd to 15th, shareholder Donghe Investment sold 377,000 shares and shareholder Xiecheng Investment sold 503,000 shares, with combined proceeds of 30.712 million yuan.

Furthermore, Nanya New Material (688519.SH) disclosed a share reduction plan on April 8th involving several directors, part of the actual controllers, and their acting-in-concert parties, covering seven shareholders. Recent disclosures of the results show that the company's actual controller, Bao Xiuyin, sold 2.8 million shares; Bao Aifang sold 180,000 shares; and Zhou Jufen sold 103,000 shares. Acting-in-concert parties of the actual controllers Bao Yaochong sold 33,300 shares, Bao Sijiao sold 34,000 shares, and Bao Hangyu sold 32,500 shares. Vice Chairman Zhang Dong sold 381,000 shares. These shareholders collectively sold 3.5638 million shares, cashing out 737 million yuan.

A "fat finger" trading error also occurred during this period. Due to an operational mistake, Zhou Jufen sold a total of 103,000 company shares on June 8th, exceeding the planned sale of 102,000 shares by 1,000 shares. Bao Hangyu and Bao Yaochong, children of Zhou Jufen, voluntarily waived the remaining 2,200 shares from their planned sales to mitigate the market impact and terminated their reduction plans early.

Additionally, three other companies have pending share reduction plans. Jin'an Guji (002636.SZ) recently announced that its independent director, Yang Deli, plans to sell no more than 3,750 shares between July 7th and October 6th. Kexiang Co., Ltd. (300903.SZ) announced that two senior executives plan to sell shares due to personal funding needs. Board Secretary Zheng Haitao intends to sell no more than 218,500 shares, and CFO Liu Tao plans to sell no more than 193,300 shares.

Fangbang Co., Ltd. (688020.SH) is also facing a wave of executive selling. In April this year, the company announced that, due to personal funding needs, Director and CTO Gao Qiang, Board Secretary Wang Zuokai, and CFO Wang Youtao planned to collectively sell no more than 22,700 shares. In early June, the company further announced that shareholder Yi Hongqiong and Director Ye Yong planned to collectively sell no more than 1.3136 million shares. The selling period for these individuals spans from April to September.

Based on a rough calculation using the June 17th closing prices, these three PCB companies could see combined sales exceeding 350 million yuan in the coming months.

Price Hikes and Production Expansion Intertwine

Among the companies with share sales, cases involving controlling shareholders, actual controllers, and company executives have increased, aligning with the broader "selling wave" trend of recent months. This is interpreted by the market as a strong desire by related parties to "lock in profits" at elevated stock price levels.

This year, the PCB sector has emerged as one of the strongest themes in the A-share market. Particularly since this week, daily limit-up rallies have been frequent. As of June 17th, the combined market capitalization of approximately 45 A-share PCB stocks is about 3.3 trillion yuan, with 96% of these stocks posting year-to-date gains and 17 more than doubling. Among them, Jin'an Guji and Kexiang Co., Ltd. have surged over 400% year-to-date; Nanya New Material and Huazheng New Material have gained over 300%.

Measured from their respective low points, the PCB sector has produced over a dozen ten-bagger stocks, including Sheng Yi Technology (600183.SH), Dongshan Precision (002384.SZ), Shenghong Technology (300476.SZ), Hudian Co., Ltd. (002463.SZ), Shengyi Electronics (688183.SH), Nanya New Material, Kexiang Co., Ltd., Jin'an Guji, and Huazheng New Material.

The sector's exuberance benefits from the explosive growth in AI computing demand. As global general artificial intelligence technology rapidly evolves, the demand for AI training and inference continues to expand, driving rapid growth in demand for AI computing power and AI servers. This creates substantial and high-specification demand for PCBs, providing strong support for the industry's sustained future growth.

Simultaneously, the entire PCB industry chain is experiencing a demand-driven wave of price increases and production capacity expansion. According to reports, Goldman Sachs analysts noted in a recent report that global PCB prices surged by as much as 40% month-over-month in April alone. Mulin Sen's wholly-owned subsidiary, Xinyu Mulin Sen Electronics Co., Ltd., raised prices for its entire PCB product line by 20% starting June 12th.

Amid the AI wave, peer companies are ramping up capital expenditure in high-end PCB areas. Preliminary statistics show that as of June 11th, 13 A-share PCB manufacturers have announced expansion plans this year, with total planned investment exceeding 60 billion yuan (including intentions). For example, Shennan Circuits (002916.SZ) plans to raise up to 4.882 billion yuan to fund a Wuxi AI computing power electronic circuit product project, producing high-speed, high-density, multi-layer PCBs for AI servers, switches, and other fields.

Shenghong Technology stated that its expansion pace is accelerating, with advanced planning in infrastructure, fit-out, equipment configuration, and talent reserves. All aspects are progressing smoothly, and its expansion speed is leading the industry. Hudian Co., Ltd. also mentioned that based on forecasts for market demand and its structure, the company accelerated a series of capacity expansion plans in the first quarter of 2026. The expansion is not a simple replication of scale but a phased, upgraded capacity ramp-up aimed at securing premium capacity early to better meet the needs of leading customer groups.