AI computing power demand surges; Shanghai Electric shares forecast up to 78% net profit growth in the first half of the year, Thailand factory turns profitable in Q2 | Earnings report news
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Benefiting from the continued advancement of AI computing infrastructure construction, strong demand for high-end PCBs, and ongoing optimization of product structure, Shudian Co., Ltd. achieved substantial year-on-year growth in both net profit and net profit excluding non-recurring items in the first half of the year.
On July 13, Shudian Co., Ltd. released its 2026 semi-annual earnings forecast, expecting net profit attributable to listed company shareholders in the first half of the year to be 2.83 billion to 3 billion RMB, an increase of 68.17% to 78.28% year-on-year; net profit excluding non-recurring items is expected to be 2.73 billion to 2.88 billion RMB, an increase of 66.08% to 75.20% year-on-year.
The growth rate of net profit excluding non-recurring items is basically consistent with net profit attributable to shareholders, indicating that the company’s earnings growth mainly comes from improvements in its core business, rather than from one-off gains. The company expects basic earnings per share for the first half to be 1.47 to 1.56 RMB, compared to 0.8754 RMB in the same period last year.
Shudian Co., Ltd. stated that the main drivers of earnings growth are the continually rising demand in fields such as high-speed switches, AI servers, high-performance computing, and smart vehicles, along with ongoing optimization of the company's product structure. Meanwhile, its Thailand subsidiary has completed the ramp-up of production capacity and turned a quarterly profit in the second quarter, bringing new momentum to the company's earnings growth.
AI Infrastructure Demand Continues to Release
The AI investment boom remains the core driving force for the company’s earnings growth.
With global tech companies continuously increasing their investment in AI data center construction, demand for AI servers, high-speed switches, and related equipment remains strong, which in turn boosts the demand for high-layer, high-frequency, high-speed PCBs. Compared to traditional servers, AI server PCBs carry greater value, and the accelerated adoption of 800G switches and gradual advancement of 1.6T products further drive up demand for high-speed PCBs.
Shudian Co., Ltd. has long focused on the PCB sector for communications equipment and servers, and possesses strong technical expertise in high-frequency, high-speed, and high-layer PCBs. Industry demand is concentrating on high-end products, which drives simultaneous growth in product value and the company’s profitability.
Product Structure Upgrades Drive Profit Improvement
Aside from growing demand, the improvement in the company’s earnings this time also reflects the effects of ongoing upgrades to its product structure.
In recent years, the company has continuously increased the proportion of high value-added products, including PCBs for high-speed switches, AI servers, and high-reliability automotive applications. These products have higher technical thresholds and longer customer certification cycles, generally offering stronger bargaining power and higher gross margins.
Therefore, this round of earnings growth not only comes from expanded shipment volumes, but also from improvement in the profitability brought about by the increasing share of high-value products, which is also an important reason behind the synchronous growth of net profit excluding non-recurring items and net profit attributable to shareholders.
Smart Vehicles Contribute a Second Growth Driver
Besides AI, smart vehicles continue to be another important growth direction for the company.
As automotive intelligence and electrification continue to advance, the PCB usage in new energy vehicles is significantly higher than in traditional fuel vehicles. Automotive PCBs also demand higher reliability, heat resistance, and stability, raising the entry barrier for the industry.
In recent years, Shudian Co., Ltd. has continuously invested in automotive electronics. Leveraging its high reliability PCB manufacturing capabilities, it has expanded supply of automotive products. As the smart vehicle market continues to grow, the automotive business is gradually becoming a new earnings growth point for the company.
Thailand Factory Enters Harvest Phase
Overseas capacity has also begun to contribute profits. The company said that the Thailand subsidiary has completed its ramp-up period and achieved a single-quarter turnaround to profit in the second quarter of 2026, signifying that the overseas factory is entering the stage of scaled operations.
As utilization rates continue to rise, the Thailand factory is expected to continue releasing profitability in the second half of the year. On one hand, the company can better meet the diversified supply chain needs of international customers; on the other hand, the maturity of its overseas manufacturing platform will further improve its global capacity layout and provide new support for future growth.
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