Pengding Holdings' 2025 Performance Flash Report Released, Net Profit Attributable to Parent Company Hits 3-Year High But Still Falls Short of Institutional Expectations

After the market close on March 12, the trillion-yuan PCB (Printed Circuit Board) giant Pengding Holdings (SZ002938, stock price 52.33 RMB, market value 121.3 billion RMB) released its performance forecast for 2025. The company expects to achieve total revenue of approximately 39.147 billion RMB in 2025, an increase of 11.4% year-over-year; net profit attributable to shareholders of the parent company of about 3.738 billion RMB, up 3.25%; non-recurring net profit attributable to shareholders of about 3.534 billion RMB, up 0.08%; and basic earnings per share of 1.61 RMB, an increase of 3.21%.

Image source: Pengding Holdings announcement

Pengding Holdings stated that the above financial data are preliminary estimates, audited by the company’s internal audit department, and have not been audited by an accounting firm. There may be discrepancies with the final data disclosed in the annual report. The company’s 2025 annual report is expected to be released by March 31, 2026.

According to a report by the Daily Economic News (hereinafter referred to as “Meijing Reporter”), despite Pengding Holdings achieving double growth in revenue and net profit attributable to shareholders in 2025, its net profit still fell short of the forecasts made by 12 institutions.

Net profit attributable to shareholders hits nearly 3-year high but still below institutional expectations

According to Pengding Holdings’ 2025 third-quarter report, the company achieved a net profit attributable to shareholders of about 2.408 billion RMB in the first three quarters of 2025. Based on the data disclosed in the performance forecast, Pengding Holdings is expected to realize a net profit of approximately 1.33 billion RMB in the fourth quarter of 2025, representing a 13.19% increase from about 1.175 billion RMB in the third quarter.

Image source: Pengding Holdings Q3 2025 report

Looking vertically, Pengding Holdings’ net profit attributable to shareholders of about 3.738 billion RMB in 2025 reached a new high since 2023, and after a 34.41% year-over-year decline in 2023, it has achieved positive year-over-year growth for two consecutive years. However, the 3.25% growth rate in net profit attributable to shareholders in 2025 is significantly lower than the 10.14% growth rate in 2024.

Meijing Reporter noted that although Pengding Holdings’ net profit attributable to shareholders grew positively in 2025, data from the Wind financial terminal shows that the consensus forecast from 12 institutions for 2025 net profit attributable to shareholders is about 4.222 billion RMB. Therefore, the disclosed figure of approximately 3.738 billion RMB is below institutional expectations and lower than the forecasts of all 12 institutions.

Image source: Wind

Cost pressures and exchange rate fluctuations: how to address profit challenges?

Regarding the performance outlook for 2025, Pengding Holdings stated that during the reporting period, the rapid development of artificial intelligence (AI) technology has driven explosive growth in computing power demand. The downstream market, represented by AI servers, has expanded quickly, leading to rapid development in the global PCB industry. Facing external uncertainties such as changes in the global trade environment and supply chain tensions, the company maintains strategic focus, accurately grasps industry trends, consolidates existing customer share, and expands into emerging business areas to achieve steady revenue growth.

However, rising raw material prices combined with intensified exchange rate fluctuations have put pressure on cost control and profit growth. Pengding Holdings indicated that to seize opportunities in the AI server market, the company continues to increase capital expenditure, which in the short term has led to higher depreciation expenses, exerting some pressure on profitability. In response to these challenges, the company actively maintains supply chain stability, deepens cost reduction and efficiency improvements, keeps abreast of market trends, and actively develops new customers and products to maintain stable profitability.

Notably, beyond basic performance data, as of the end of 2025, Pengding Holdings’ total assets were approximately 48.752 billion RMB, an increase of 9.45% from the beginning of the year; owners’ equity attributable to shareholders of the listed company was about 34.136 billion RMB, up 6.31%; and net asset value per share was 14.73 RMB, an increase of 6.35%.

Meijing Reporter found through the PCB industry chain that Pengding Holdings is not the only company whose 2025 performance fell short of institutional expectations. Another trillion-yuan PCB giant, Huatian Electronics, previously disclosed its performance forecast, showing a 47.74% year-over-year increase in net profit attributable to shareholders to about 3.822 billion RMB, but still slightly below the institutional forecast of approximately 3.833 billion RMB.

Benefiting from AI server demand, high-end PCB products such as high multilayer boards and high-density interconnect (HDI) technology have seen rapid growth in recent years. According to Prismark data, by 2029, the global PCB market for servers/data storage is expected to reach $18.921 billion, with an 11.6% compound annual growth rate from 2024 to 2029, leading other PCB applications.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.

Daily Economic News