Movement Alert|VGT Falls 3.02% in Regular Trading, PCB Sector Pullback Amid Earnings Quality Concerns

Market Focus
09/24

On September 24, VGT declined 3.02% in regular trading, trading at 218.4 HKD/share, with turnover of HKD 279 million. The decline came after the broader PCB sector retreated following a collective rally in the prior session.

On the sector front, electronic components stocks weakened broadly, with peers such as Delton falling 7.7%, CCTC down 1.67%, and KB Laminates down 1.45%, reflecting a broad-based pullback in PCB names. The reversal followed strong gains the previous trading day, when multiple PCB stocks rallied on raw material price hike expectations and mSAP order momentum.

On the fundamental side, market participants flagged concerns over VGT's interim earnings quality. The company's first-half gross margin declined approximately 3 percentage points year-over-year to 33.2%, while second-quarter non-recurring adjusted net profit fell 5.3%. Notably, inventory surged to RMB 5.89 billion, up 119.5% year-over-year — far outpacing the 28.8% revenue growth — with inventory turnover days rising to 104.9 days, raising questions about capacity digestion amid aggressive AI-driven expansion.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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