China Aerospace (00031) surged over 14% again, rising 14.29% to HK$0.8 as of press time, with trading turnover of HK$24.44 million.

On the news front, China Aerospace previously announced its interim results, reporting revenue of approximately HK$2.023 billion for the first half, up 10.89% year-on-year. However, the loss attributable to shareholders expanded 48.15% to HK$42.34 million. During the period, injection molding products business revenue increased 20.32% compared to the same period last year, driving up the overall operating profit of the technology industrial segment. The PCB business showed overall sales stabilization with revenue growing 11.42% year-on-year, primarily driven by strong growth in optoelectronic modules and domestic substrate business.

Notably, China Aerospace disclosed in its interim report that the civil engineering for the Nantong Kangyuan integrated circuit packaging substrate capacity construction project has been completed, with production line construction proceeding in an orderly manner and small-batch trial operations expected to begin in the first half of 2025.

The Nantong Kangyuan circuit packaging substrate project is a key investment project for the company, with total investment of 5 billion yuan and first-phase investment of 1.5 billion yuan. It started trial production in Q4 2024 and entered the mass production ramp-up phase in January 2025, with designed annual capacity of 240,000 square meters and annual sales of 1.35 billion yuan. Upon full production, the company's capacity for high-end integrated circuit packaging substrates and high-density printed circuit boards will double, potentially positioning the company among the top three in China's substrate industry and promoting domestic substitution and autonomous control in the semiconductor sector.