In the AI era, "electrical connectivity" (AI PCB) and "optical connectivity" (optical modules) in computing power clusters jointly build the high-speed interconnect network for AI computing clusters, ushering in a massive demand market.

This is because global technology giants are comprehensively ramping up AI infrastructure. According to the latest financial guidance as of 2026, the combined annual capital expenditure of four tech giants — Google, Amazon, Microsoft, and Meta — exceeds US$650 billion, with funds concentrated in AI servers, data centers, high-speed networks, and large model research and development.

JPMorgan has raised its AI infrastructure capital expenditure expectations, projecting that total global intelligent computing center investment will reach US$5.5 trillion by 2030. This trillion-dollar capital investment brings a market feast for the AI industry chain.

Few companies simultaneously hold both the AI PCB and optical module tracks, and Suzhou Dongshan Precision Manufacturing Co., Ltd. (02384) is one of them.

According to Zhitong Finance APP, Suzhou Dongshan Precision Manufacturing Co., Ltd. has passed the Hong Kong Stock Exchange hearing and is conducting its IPO subscription from October 20 to October 23, planning to globally offer 113,783,200 H shares, of which 11,378,400 shares are for Hong Kong public offering and 102,404,800 shares for international offering, with a maximum offer price of HK$93.80 per share (100 shares per lot, entry fee approximately HK$9,474.59), and is expected to list on the Main Board of the Hong Kong Stock Exchange on October 28.

If the issuance is completed, the company will achieve an "A+H" dual-listing platform and enter the "allocation vision" of global investors.

The company's cornerstone investors include Aurora SF, Hong Kong Yonglian Investment Development Limited, JPMorgan Asset Management (Asia Pacific) Limited, Alibaba Investment Limited, CPE Bodhi Investment Limited, LMR Multi-Strategy Master Fund Limited, Rui Yuan Fund, Montage Hong Kong Holdings Company Limited, Orient Asset Management (Hong Kong) Limited, Spring River Greater China Fund, Jane Street Singapore Pte. Limited, Jinghe Integrated Hong Kong Limited, Pinpoint Asset Management Limited, Yuxuan Network Technology Limited, Tianhong Fund Management Co., Ltd., Xinhua Asset Management (Hong Kong) Limited, and others.

The company's cornerstone investor structure is diversified and strong, locking in a solid subscription foundation for this global offering.

Suzhou Dongshan Precision Manufacturing Co., Ltd. is an A-share listed company. Its market value started a bull market in 2024. Although it has corrected significantly since July 2026, it has still multiplied by more than 5.8 times in less than three years. This time, the company will link "A+H" — what kind of new story will it tell?

Net Profit Surges 293.5%, Earnings Enter Accelerated Growth Cycle

According to Zhitong Finance APP, Suzhou Dongshan Precision Manufacturing Co., Ltd. is in an accelerated growth cycle. From 2023 to the first half of 2026, revenue growth was 6.56%, 9.27%, 9.12%, and 63.95% respectively, and net profit was RMB 1.965 billion, RMB 1.085 billion, RMB 1.393 billion, and RMB 2.985 billion respectively.

The key time point in the company's earnings cycle is 2025, when revenue and profit began to grow simultaneously, and the first half of 2026 clearly accelerated, with net profit surging 293.5% and net margin rising to 10.7%.

This is attributable to the company's diversified business drivers. The company has four major businesses: PCB, precision components, touch panels and LCD panels, and optical modules. In the first half of 2026, the PCB business remained the fundamental base, but structurally focused on high-end AI PCB development, with rigid boards, flexible boards, and rigid-flex boards all maintaining growth, generating revenue of RMB 12.53 billion, accounting for 45.1% of revenue. Precision components revenue was RMB 6.581 billion, up 178.6% year-on-year, with revenue share rising to 23.7%. The optical module business was the most eye-catching, with revenue of RMB 5.351 billion, accounting for 19.2% of revenue.

The optical module business was expanded through the company's acquisition of Source Photonics in 2025, and after consolidation, Source Photonics contributed the main revenue and profit growth.

In the first half of 2026, PCB gross margin was 17.6%, precision components gross margin was 11.6%, while optical module gross margin was as high as 39.2%, contributing nearly 40% of gross profit. About 20% of revenue contributed nearly 40% of gross profit, directly driving the company's gross margin from 13.1% to 19.4%.

Image source: Company post-hearing information

For this fundraising, Suzhou Dongshan Precision Manufacturing Co., Ltd. plans to use most of the funds for capacity expansion of high-speed EML chips and optical modules, and to build new production facilities focused on high-end PCB.

It is evident that the company has locked in its development direction. These two businesses align with the main AI computing track — one is a structural opportunity in the fundamental base, and the other is a high-margin growth track. The "AI PCB + optical modules" dual engine is gradually taking shape.

In addition, this H-share listing also aligns with the company's capital globalization strategy. The company's business and capacity cover 14 countries and regions worldwide, with overseas revenue accounting for more than 80%. In the first half of 2026, revenue shares from the Chinese and overseas markets were 16.8% and 83.2% respectively. Among overseas markets, the U.S. market accounted for 46.1% of revenue, and other Asian countries are also accelerating growth. With H shares, the company solidifies its leading position in the global market.

Two Core Logics: "AI PCB + Optical Modules" Drive Growth Certainty

"AI PCB + optical modules" are the two core tracks for Suzhou Dongshan Precision Manufacturing Co., Ltd.'s accelerated growth, bringing highly certain earnings growth sustainability, verified by two core logics.

First, industry demand for both tracks continues to explode. Driven by AI infrastructure, demand for high-layer-count AI PCBs continues to grow, and PCB presents obvious structural opportunities. According to China Insights Consultancy, for example, the edge AI device PCB industry had a compound growth rate of 64.2% from 2021 to 2025, and the data center PCB industry had a compound growth rate of 21.5%, both significantly higher than the overall global PCB industry growth rate. By 2030, their market sizes are expected to reach US$30 billion and US$36.4 billion respectively.

Optical modules are core components for breaking through data transmission bottlenecks. Also driven by AI infrastructure, the global market size was US$24.5 billion in 2025, with a compound growth rate of 21.5% from 2021 to 2025, and is expected to reach US$108.6 billion by 2030, with a compound growth rate of 34.6%.

In terms of product lines, 800G modules are experiencing explosive growth, and 1.6T products have entered mass production and become a core growth driver.

From the industry chain perspective, AI infrastructure is still accelerating expansion, providing assurance for AI PCB demand. According to TrendForce's latest AI server industry research, the total capital expenditure of the top nine global CSPs (Google, Amazon, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba, Baidu) is expected to exceed US$957 billion in 2026, a year-on-year increase of 106%, and will exceed US$1.5 trillion in 2027, continuing to grow by 60%.

Second, Suzhou Dongshan Precision Manufacturing Co., Ltd. has achieved "dual positioning" in both scale and product technology in AI PCB and optical modules. In the AI PCB field, the company is one of the very few manufacturers simultaneously covering flexible boards, rigid boards, and rigid-flex boards. According to China Insights Consultancy, based on 2025 revenue, the company ranks third among global PCB suppliers with a 4.2% market share, and second among global flexible board suppliers with a 24.5% market share.

On the product side, the company's multi-layer PCBs and HDI use ultra-low-loss M7/8 grade and above materials, achieving transmission speeds of up to 224Gbps, capable of meeting multi-GPU interconnect needs in AI clusters, and possessing professional technology for up to 78-layer high multi-layer PCBs and high-order HDI.

Based on M7/8 grade and above materials, the higher the layer count, the higher the technical requirements. The company is positioned at the industry's most cutting-edge technology level, mastering scarce high-end AI PCB products.

In the optical module field, the company's Source Photonics is one of only three companies globally with independent design and manufacturing capabilities for high-speed optical chips and optical modules. According to China Insights Consultancy, based on 2025 revenue, the company ranks seventh in the global optical module market with a 2.9% market share.

Source Photonics' 100G PAM4 EML chips have been cumulatively used more than ten million times in 400G and 800G optical modules, and 200G PAM4 EML chips have entered mass production and support batch supply of 1.6T optical modules.

The company has complete self-developed technology from optical chip development to optical module manufacturing, with dual technology route reserves in EML and silicon photonics. Its dual-track development route for 800G and 1.6T optical modules covers the current mainstream industry product lines.

Leveraging its technological advantages, the company continuously optimizes the performance of 800G and 1.6T optical module products while also accelerating the commercialization process of 3.2T and above specification optical modules.

More importantly, Suzhou Dongshan Precision Manufacturing Co., Ltd.'s two tracks are not isolated. From electrical connectivity to optical connectivity, the company combines PCB technical expertise with optical chip and optical module capacity, establishing integrated advantages in high-speed transmission, which most peers do not possess, supporting the expansion of AI infrastructure.

With high certainty of growth sustainability, this H-share listing will once again bring value revaluation opportunities for the company.

Second Round of Investment Cycle, H-Share Listing Expected to Gain Favor

In the capital market, AI technology has multiple rounds of long-term investment allocation cycles. The first round of AI infrastructure investment, including AI large models, AI chips, AI servers, and AI PCBs, has produced tenfold bull stocks since 2024, such as Nvidia and TSMC. A-share companies like WUS Printed Circuit, Shennan Circuits, and Suzhou Dongshan Precision Manufacturing Co., Ltd. also had maximum gains exceeding 10 times. After AI infrastructure, the second round is the application layer explosion. This year, the physical AI track is standing at the forefront, and tenfold bull stocks may be brewing.

In fact, whether AI infrastructure or physical AI, AI PCB and optical modules, as high-speed network interconnect hardware, both have enormous markets. Just like building multiple large cities, roads must be built to connect them. Therefore, Suzhou Dongshan Precision Manufacturing Co., Ltd.'s dual tracks essentially cover the entire AI industry lifecycle, allowing it to capture the market dividends brought by AI technology from beginning to end.

This is also the core reason why the company places such importance on these two tracks.

Suzhou Dongshan Precision Manufacturing Co., Ltd.'s A-share valuation has retreated to an undervalued "allocation zone" over the past four months. H shares generally reference A-share pricing, and standing at the second round of investment opportunities, H shares are dominated by global institutional investors, with a more reasonable pricing mechanism, expected to smooth A-share volatility and achieve revaluation.

Based on the offer price of HK$93.8, the company's market value would be HK$338.798 billion, with a dynamic PS of only 4.38 times. High-quality growth AI+ targets in the Hong Kong stock market typically have PS values concentrated at 10-20 times, indicating obvious undervaluation.

In summary, Suzhou Dongshan Precision Manufacturing Co., Ltd. has entered the IPO subscription stage, just one step away from listing. The company has strong fundamentals, with earnings accelerating in 2026, and "AI PCB + optical modules" becoming the core growth engine and also the focus of fundraising. These two tracks have high industry prospects, cover the entire AI industry lifecycle, and the company has positioning advantages in scale and product technology, with highly certain growth sustainability.

The company's market value has fully retreated, and the H-share listing valuation is clearly undervalued. Combined with being one of the few global suppliers simultaneously possessing integrated self-developed manufacturing capabilities in AI PCB, optical chips, and optical modules, it is a scarce target and is expected to gain favor from long-term large capital.