Ask AI · How Can Huidian Co., Ltd. Capture the AI Compute Capacity Upside to Achieve High Growth?

A high-end manufacturing company that’s “standing on the back of the wind.”

Author | beyond

Editor | Xiaobai

If you’ve been paying attention to AI compute capacity or new energy vehicles, you’ve surely heard names like NVIDIA and Tesla. But you may not know that behind these tech giants there’s a Chinese company quietly providing core components for them—Huidian Co., Ltd.

In 2025, Huidian Co., Ltd. (002463.SZ, the Company) turned in a particularly impressive set of results.

How strong were the results? Revenue and profits surged together

In 2025, Huidian Co., Ltd.’s revenue reached 90B yuan, up 42%; its net profit attributable to shareholders was 3.82 billion yuan, up 48%. What’s even more worth noting is that the growth rate of net profit exceeded the growth rate of revenue—this means the company isn’t just selling more, but also earning more.

(Source: the Company’s 2025 annual report)

What this company makes is PCB—printed circuit boards. You can think of it as the “skeleton” and “nervous system” of electronic products. It’s in almost every powered device, from phones and computers to cars and servers.

But Huidian Co., Ltd. didn’t spread its operations too widely. Instead, it chose the two most profitable tracks: AI servers and automotive electronics. Those two choices are exactly what helped it catch the wind.

In 2025, revenue from the “Enterprise Communications Market Segment” reached 8B yuan, accounting for 77% of total revenue, with a gross margin close to 40%. The core customers in this segment are AI chip giants like NVIDIA.

You have to know that AI servers place far higher requirements on PCBs than traditional servers. A PCB used in an ordinary server might have only a dozen layers, while an AI server’s PCB needs dozens of layers, using more expensive materials and requiring more complex processes. This means the PCB value per AI server is several times that of a traditional server.

The company is not only one of the exclusive suppliers of NVIDIA’s AI server baseboards, but it also laid early groundwork for next-generation technology. In other words, while everyone was scrambling to fight over the AI cake, the company had already firmly established itself in the “shovel-selling” business.

Meanwhile, its automotive board business is also growing steadily. In 2025, revenue in this area was 8B yuan, up 26%. As new energy vehicles become smarter, the quantity and value of in-vehicle PCBs are both increasing—this track also holds great potential.

(Source: the Company’s 2025 annual report)

Financials are solid

Many people who buy stocks are most afraid that a company might suddenly blow up. From a financial perspective, Huidian Co., Ltd. can be described as quite “steady.”

In 2025, the Company’s net operating cash flow was 8B yuan, almost perfectly matching net profit. This shows that the money it makes is real cash, not “paper prosperity.” In addition, the Company’s accounts receivable turnover rate is better than the industry average, meaning customers pay promptly and repayment ability is strong.

As of the end of 2025, the Company’s asset-liability ratio was 46.5%, and its interest-bearing liabilities ratio was 16%—which is a reasonable level for manufacturing. Its short-term solvency is also improving; the cash on hand is sufficient to cover short-term debt.

(Source: Market Value Fengyun APP)

However, the Company is not without weaknesses. In 2025, inventory increased year over year by 74%, and its inventory turnover rate was below the industry average. On the one hand, this is because high-end products have relatively long production cycles; on the other hand, it’s also because the Company actively built up inventory to meet strong orders. But this also means that if demand suddenly cools off, it may face inventory pressure.

“Making the big moves”: betting on future capacity expansion

Huidian Co., Ltd. is expanding at a large scale. Its production base in Thailand entered small-scale mass production in the second quarter of 2025. In China, there is also a 4.3 billion yuan high-end PCB expansion project. These investments are all aimed at capturing future orders brought by AI and automotive electronics.

But expansion also carries risks. Currently, the Thailand base’s capacity utilization rate is only 73.5%. If orders don’t keep up afterward, or if customer certification timelines are delayed, the added depreciation and amortization will weigh on profits.

This is also why investors need to closely watch its capacity ramp-up. The key is whether the money invested can be transformed into real cash-return benefits.

Risks also cannot be ignored. Following general industry development patterns, there are three major challenges that cannot be overlooked:

First, intensifying industry competition. AI server PCBs are a hot commodity right now, and many peers are pushing into this direction. If a price war breaks out in the future, the Company’s gross margin of nearly 40% might not be maintainable.

Second, volatility in raw material prices. Core materials such as copper-clad laminates make up a large portion of costs, and their prices are heavily affected by commodity inputs like copper and resins. If upstream price increases can’t be fully passed on to customers, profits will be squeezed.

Third, technology iterations are too fast. PCB technology is evolving rapidly, especially in advanced packaging and optical-electrical integration. If the Company misjudges its technology roadmap, or if key customers (such as NVIDIA) switch solutions, its existing advantages could be overturned overnight.

Huidian Co., Ltd.’s story is actually not complicated: it didn’t chase after the latest hype. Instead, in the two most certain tracks—AI compute capacity and automotive electronics—it has pushed technology, capacity, and customer relationships to the extreme.

The performance in 2025 is the best validation of this strategy. The Company’s revenue and profits have grown rapidly, cash flow is healthy, and its finances are robust. Within China’s PCB industry, it has already firmly secured a spot in the first tier.

But the road ahead is not all smooth sailing. Whether capacity can be digested smoothly, whether gross margin can be maintained, and whether technology can continue to lead—these are all questions that require ongoing observation.

For ordinary investors, Huidian Co., Ltd. represents a snapshot of China’s high-end manufacturing sector: it doesn’t rely on concepts or hype. What it relies on is real, solid technological accumulation and a precise grasp of industry trends. If you believe in the future of AI and intelligent vehicles, this “hidden champion” is worth adding to your watchlist.

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