On June 22, Guanghe Technology fell 3.69% in regular trading, trading at 175.1 HKD/share, with turnover of 115 million HKD. The decline represents a continued pullback after the stock touched a near-one-year high of 206.66 HKD on June 17, with profit-taking pressure evident following a sustained rally driven by the PCB sector.

On the industry front, copper clad laminate (CCL) manufacturers have issued Q3 price hike notices since early June, with increases generally ranging from 10% to 15%, bringing year-to-date cumulative CCL price increases to approximately 40%. A Citi research report noted that major CCL producers capacity growth stands at just over 20%, significantly lagging downstream PCB expansion speeds, with pricing power concentrating toward upstream materials. Some PCB manufacturers may face CCL allocation shortfalls in Q3, intensifying cost pass-through pressure.

The company specializes in server PCBs and reported Q1 net profit growth of 62.40% to 70.99% year-over-year. The near-term share price weakness is primarily attributed to technical correction following significant prior gains and upstream cost margin compression.

(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.)