Hongban Technology Plans 6 Billion Yuan Investment, Including 5 Billion Yuan mSAP Project

Hongban Technology (603459. SH) announced three investment plans on July 24. The company intends to invest up to 700 million yuan in technical renovation and expansion of its high-precision HDI circuit board production lines at the existing Ji'an plant. Separately, Ganzhou Hongban plans to invest up to 300 million yuan to build the D1 plant and auxiliary facilities. All funds will come from the company's own and self-raised capital, and the plans are subject to shareholder approval. The total investment for the three projects is 6 billion yuan, including a 5 billion yuan mSAP high-end precision circuit board project in Ganzhou. The company has been engaged in the R&D, production, and sales of mid-to-high-end printed circuit boards for over 20 years. Its core revenue comes from high-level HDI boards, and it also produces flexible boards, rigid-flex boards, high-speed communication boards, and IC substrates. Hongban supplies HDI motherboards to eight of the world's top ten smartphone brands, representing a 13% global market share for such boards, and has long-term cooperation with OPPO, vivo, Honor, Xiaomi, and Transsion. In the optical module and server field, the company has production capabilities for 800G and 1.6T high-speed optical module boards, has entered the IC substrate supply chain of Changxin Memory, and supplies multiple international clients. From 2023 to 2025, Hongban's HDI board revenue as a share of total revenue was 48.8%, 60.13%, and 66.84%, respectively, with gross margins of 8.35%, 15.97%, and 26.39%. The company has mastered high-end HDI board production technology, with a minimum laser blind hole diameter of 50 microns, a minimum core board plating thickness of 0.05 mm, any-layer HDI boards up to 26 layers, and overall blind hole layer deviation controlled within 50 microns. For its mSAP process, sample line width/spacing reaches 10 microns/10 microns, while mass production level is 18 microns/18 microns. In 2025, the company's IC carrier revenue was about 76 million yuan, accounting for 2.22% of main revenue. AI servers, high-speed networks, the smartphone recovery, and automotive electronics are driving demand for multi-layer, high-density, and high-speed material PCBs. Hongban's announcement describing the 5 billion yuan project mainly involves applications in communications, consumer electronics, and displays. The company's debt-to-asset ratio at the end of the first quarter of 2025 was 56.33%.