PCB concept stocks showed strong performance today (May 7). Suzhou Dongshan Precision Manufacturing Co.,Ltd. surged by the daily limit, bringing its year-to-date gain to 126.67%, effectively doubling its stock price. Other notable performers include Avary Holding, Wus Printed Circuit, and Shennan Circuits, which have risen 48.54%, 43.41%, and 37.22% respectively this year, delivering impressive returns.
Among popular ETFs, the Huabao Electronics ETF (515260), which aggregates core leaders in the electronics sector, continued its upward trend after hitting a new historical high yesterday. Its on-market price climbed 2.19% during today's session, marking 17 gains in the past 20 trading days.
In terms of capital flows, the electronics sector recorded a net inflow of over 33.9 billion yuan from major investors by the time of writing. Over the past five and twenty days, the sector attracted 91.3 billion yuan and 338.4 billion yuan, respectively, maintaining its position as the top sector among the 31 primary Shenwan industries in terms of capital inflow. Constituent stocks of the Huabao Electronics ETF (515260), such as Suzhou Dongshan Precision Manufacturing Co.,Ltd. and Shengyi Technology, saw net inflows exceeding 3.3 billion yuan and 1.8 billion yuan, ranking third and fifth respectively on the A-share capital inflow list.
Why does the electronics sector continue to attract strong investor interest? Industry experts point to a combination of policy support, profitability expectations, and performance validation. First, increasing policy support at the national level for high-level technological self-reliance provides a solid foundation for the long-term development of the electronics industry. Second, the sector has demonstrated strong resilience in the A-share market over the past two years, with several sub-sectors delivering excess returns. Third, AI computing power and high-end manufacturing are currently high-certainty market themes. Fourth, first-quarter reports show significant year-on-year profit growth for companies in segments such as semiconductor equipment and AI terminal hardware.
On the news front, a shortage of copper-clad laminate (CCL) supply has led to extended delivery cycles. As demand for PCBs surges, the delivery time for CCL orders from substrate manufacturers has lengthened from about two weeks to as long as six weeks. CCL, which consists of copper foil laminated on both sides of an insulating layer, is a core material used in manufacturing various semiconductor device substrates.
According to ICHUNT, high-end PCB material suppliers such as Taiwan Union Technology, Elite Material, and ITEQ have begun communicating price increases for high-end CCL to their customers. Elite Material raised CCL prices starting April 25, with some product series seeing increases of 20% to 40%. Taiwan Union Technology and ITEQ announced new price adjustments for high-end materials effective in the second quarter, with increases of around 10%, targeting applications such as AI servers and switches.
Guosheng Securities noted that driven by accelerating demand for computing power, core equipment like AI servers and high-speed switches continue to boost demand for high-end PCB products, including high-frequency, high-speed, multi-layer, and advanced HDI boards. As a key component of PCBs, CCL is experiencing rising market vitality. Taiwan Union Technology forecasts a compound annual growth rate of 40% for high-end CCL from 2024 to 2027.
The Huabao Electronics ETF (515260) and its linked funds (Class A: 012550; Class C: 012551) track the Electronic 50 Index, with significant exposure to the semiconductor and consumer electronics industries. The ETF covers popular sectors such as AI chips, automotive electronics, 5G, and printed circuit boards (PCBs), and includes major holdings like Luxshare Precision, Cambricon, Foxconn Industrial Internet, and SMIC. Additionally, the ETF is eligible for margin trading and Stock Connect programs, making it an efficient tool for gaining exposure to core assets in the electronics sector.
Investment risks: The Huabao Electronics ETF passively tracks the CSI Electronic 50 Index, which has a base date of December 31, 2008, and was launched on July 22, 2009. The index's constituent stocks are adjusted according to its compilation rules, and its historical performance does not indicate future returns. Individual stocks and index constituents mentioned are for illustrative purposes only and do not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager rates the risk level of the Huabao Electronics ETF as R3-medium risk, suitable for investors with a balanced (C3) or higher risk profile. Suitability assessments should be confirmed with sales institutions. All information provided is for reference only, and investors are responsible for their investment decisions. Views, analyses, and forecasts do not constitute investment advice, and no liability is accepted for losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not ensure the performance of this fund. Invest with caution.
A MACD golden cross signal has formed, indicating positive momentum for several stocks.