(Yicai) Aug. 18 -- Shares of Shengyi Electronics rose after the Chinese printed circuit board maker said its net profit widened more than five-fold in the first half of the year.

Shengyi Electronics [SHA: 688183] closed 2.7 percent up at CNY56.36 (USD7.85) in Shanghai today, after earlier gaining as much as 5.6 percent.

Net profit surged 452 percent to CNY531 million (USD74 million) in the six months ended June 30 from a year earlier, mainly thanks to the demand for PCB products from the artificial intelligence server and high-performance computing industries, the Dongguan-based company said in its semiannual earnings report released on Aug. 15. Revenue rose 91 percent to CNY3.8 billion (USD524.9 million).

Shengyi Electronics plans to distribute cash dividends of CNY3 (42 US cents) per 10 shares, including taxes, for a total of CNY247 million (USD34.4 million), accounting for 47 percent of its first-half net profit.

AI servers have become the main application area for Shengyi Electronics’ PCB products, with the share of sales in this market segment jumping to a new high, the firm noted, without unveiling any specific figures.

According to the company’s 2024 earnings report, its server PCB product sales accounted for nearly 49 percent of the total last year, a big jump from that of previous year, as its market share greatly increased.

Shengyi Electronics also released a capacity expansion plan on Aug. 15. The firm aims to build a new production line with an annual output of 700,000 square meters of high-end PCB products at its factory in Ji’an, China’s eastern Jiangxi province, to meet the demand from servers, multilayer network communications, and AI computing power.

The project will be built in two phases, each with an annual production capacity of 350,000 sqm. The first phase is expected to start trial production next year, and the second one in 2027.

The capacity expansion will help the company integrate resources, optimize capacity layout, better align with market demand, and enhance its profitability and market competitiveness, Shengyi Electronics noted, adding that the project’s after-tax dynamic payback period is expected to be 8.4 years.

Editor: Futura Costaglione