WUS (002463)

Equity Research 12 October 2026 | 12:18AM HKT

WUS (002463.SZ): AI PCB ramp up on rising AI server and switch demand; GM improvement driven by PCB specification upgrade; Buy

We remain positive on the rising AI PCB demand, driven by servers and switch Verena Jeng | specification upgrade with the new platform migration. Looking into 3Q26E, we Goldman Sachs (Asia) L.L.C.

expect the company’s revenues to see sequential QoQ growth at 5% to Rmb7.8bn, Allen Chang | driven by the new capacity to support more orders from clients, along with Goldman Sachs (Asia) L.L.C. continuous GM improvement to 37.6% in 3Q26E (vs. 35.8% in 3Q25) on AI PCB product mix upgrade; as we highlighted in the AI PCB TAM update (link), where we Ting Song | Goldman Sachs (Asia) L.L.C. raised the PCB TAM for AI servers to US$38bn by 2027E to reflect the ramp up of rack-level AI servers and PCB specification upgrade. The company continues to expand capacity and advance production lines for AI PCBs in China and Thailand, with new products and technology under development. Maintain Buy.

Exhibit 1: WUS revenues by product

70,000 Rmb m High-speed networking PCB and AI servers 60,000 PCB revenues to grow at 63% CAGR in 2026-28E 50,000

- E 2027E 2028E Industrial PCB and others Automotive PCB General servers and other data comm PCB AI servers PCB High-speed networking PCB

Source: Company data, Goldman Sachs Global Investment Research

Exhibit 2: WUS 2Q26 result snapshot Rmb m 2Q25 1Q26 2Q26 QoQ YoY GS Act/GS Gui. GS/Gui Revenue 4,456 6,214 7,475 20% 68% 6,511 15% GP 1,663 2,214 3,086 39% 86% 2,399 29% OP 1,139 1,468 2,259 54% 98% 1,641 38% Net income 920 1,242 1,681 35% 83% 1,435 17% 1,673 0% Margins GM 37.3% 35.6% 41.3% 36.9% OPM 25.6% 23.6% 30.2% 25.2% NM 20.7% 20.0% 22.5% 22.0%

Source: Company data, Goldman Sachs Global Investment Research

Earnings revision: We factor in WUS 2Q26 results and our review our 2H26E-2028E estimates based on our latest industry checks. With this, we revise up earnings by 8%/ 4%/ 4% in 2026E-28E mainly on (1) higher revenues of data center PCB,

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

supported by high-end AI PCB ramp up with specification upgrade, and (2) higher GM by 1.5ppts/ 0.6ppts/ 0.8ppts in 2026-28E to reflect product mix upgrade towards PCB with more layers that carry higher margin.

Exhibit 3: Earnings revision 2026E 2027E 2028E Rmb mn Old New Chg Old New Chg Old New Chg Revenue 28,967 30,412 5% 46,964 48,015 2% 63,467 64,632 2% GP 10,619 11,619 9% 17,665 18,362 4% 24,374 25,305 4% OP 7,544 8,429 12% 13,720 14,329 4% 19,487 20,329 4% Net income 6,506 6,999 8% 11,902 12,418 4% 16,833 17,574 4% Margins GM 36.7% 38.2% 37.6% 38.2% 38.4% 39.2% OPM 26.0% 27.7% 29.2% 29.8% 30.7% 31.5% NM 22.5% 23.0% 25.3% 25.9% 26.5% 27.2%

Source: Company data, Goldman Sachs Global Investment Research

Valuation: We continue to derive our 12m target price from a 2027E P/E (no change), and derive the target P/E multiple from peers’ trading P/E vs. forward year NI YoY (no change). With updated peers’ numbers and WUS’s forward year NI YoY, our target P/E multiple is unchanged at 23x. The target PE multiple in line with the company’s avg.+1stv. PE (24x), reflecting our positive view on WUS’s product mix upgrade toward AI and high-speed connection PCBs, driving its earnings growth and margins expansion. New target price at Rmb148 (vs. Rmb142 previously). Maintain Buy.

Exhibit 4: Peers 2027E P/E vs. 2027E-28E NI YoY Exhibit 5: WUS 12M forward P/E ratio

2027E P/E 35 X 40 y = 27.331x + 7.6353 R² = 0.7922 35 DSBJ 30

30 Delton 25 25 Kinwong +1stv 24x

Victory Giant 15 -1stv 17x 15 10 GCE 5 2027-28E NI YoY 10 0 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25…