Victory Giant Technology: A Strategic Bet on AI-Driven PCBs and Hong Kong's Capital Renaissance

The global printed circuit board (PCB) industry is undergoing a seismic shift, driven by the insatiable demand for artificial intelligence (AI) infrastructure, electric vehicles (EVs), and 5G connectivity. Amid this transformation, Victory Giant Technology (Shenzhen: 300476) has emerged as a standout player, leveraging strategic acquisitions, AI-optimized manufacturing, and geopolitical agility to position itself at the intersection of growth and innovation. Now, with whispers of a potential Hong Kong listing, the company faces a pivotal moment to capitalize on a market that has become a magnet for tech-driven capital-raising. For investors, the question is no longer whether Victory Giant is relevant but how it might exploit Hong Kong's current momentum to accelerate its global ambitions.

Strategic Positioning: AI-Driven PCBs as the New Gold Standard

Victory Giant's ascent is rooted in its ability to align with the most dynamic sectors of the electronics value chain. In Q1 2025, the company reported a staggering 339% year-over-year surge in net income, reaching 921 million yuan, a testament to the AI boom's tailwinds. This growth is not accidental but the result of deliberate strategic moves:

1. Acquisition-Driven Diversification: The $460 million acquisition of Singapore-based MFS Technology in 2023 and Thailand's Apcb Electronics in 2024 have expanded Victory Giant's capabilities into flexible PCBs (FPCs) and high-density interconnect (HDI) boards—critical components for AI servers, EVs, and advanced telecommunications. These acquisitions have diversified its revenue streams and strengthened its supply chain resilience.
2. AI-Optimized Manufacturing: The company's new $520 million facility in Vietnam's Bac Ninh province is a case study in smart manufacturing. Equipped with AI-driven automation and fully automated electroplating lines, the plant operates at 30% higher efficiency than its Chinese counterparts, producing 4 million square meters of advanced PCBs annually. This positions Victory Giant to meet the soaring demand for high-margin PCBs in AI and EV sectors.
3. Geopolitical Hedging: By shifting production to Vietnam and leveraging Singapore's regulatory framework, the company mitigates risks from U.S. tariffs and China's trade tensions while maintaining access to global markets.

Hong Kong's Tech-Friendly Ecosystem: A Perfect Storm for Capital-Raising

The HKSAR's IPO market has become a strategic battleground for tech companies, with 2025 marking a turning point. Hong Kong's Technology Enterprises Channel (TECH), launched in May 2025, has transformed the city into a launchpad for innovation-driven firms. Key factors underpinning this trend include:

• Regulatory Tailwinds: The HKEX's TECH channel offers confidential filing, streamlined approvals, and support for weighted voting rights structures—features that align with Victory Giant's need for flexibility in governance and capital allocation.
• Investor Appetite: The Hang Seng Index has surged 21% year-to-date, outperforming the flat CSI 300, as investors flock to tech and AI stocks. Recent listings like Lens Technology and Fortior Semiconductor have seen double-digit debut gains, signaling strong demand for high-growth narratives.
• Cross-Border Liquidity: The Stock Connect program has funneled record inflows into Hong Kong, with Southbound trades accounting for nearly 50% of daily turnover. This liquidity provides Victory Giant with a ready pool of mainland-based investors seeking exposure to AI and EV supply chains.

A $1 billion Hong Kong listing would not only provide Victory Giant with capital to fund its Vietnam expansion and R&D initiatives but also serve as a strategic signal to global markets. The company's 270% stock price rally in 2025 (reaching a $19 billion market cap) already reflects investor confidence in its AI-driven growth story. A dual listing would enhance visibility, attract institutional investors, and potentially unlock a valuation premium by tapping into Hong Kong's deep liquidity pools.

Risks and Realities: Navigating the Path Forward

While the case for Victory Giant is compelling, risks remain. The integration of MFS and Apcb into its operations is still in early stages, and the recent leadership transition—led by newly appointed CEO Qixiang Zhao—introduces governance uncertainties. Additionally, the company's reliance on AI-driven demand (which is cyclical in nature) exposes it to macroeconomic volatility.

However, these risks are counterbalanced by the company's financial strength. With trailing 12-month revenue of $1.76 billion and a debt-to-equity ratio of 0.4x (as of March 2025), Victory Giant has the balance sheet flexibility to navigate integration challenges and fund expansion. Its focus on high-margin HDI and FPC segments—growing at 12% CAGR globally—also provides a buffer against sector-specific downturns.

Investment Thesis: A High-Conviction Play on AI and Geopolitical Resilience

For investors seeking exposure to the AI and EV revolutions, Victory Giant offers a rare combination of strategic agility, operational execution, and geopolitical foresight. Its Vietnam-based smart manufacturing facilities, AI-optimized production, and diversified supply chain position it to outperform peers in a sector poised for 5.3% CAGR through 2030. Meanwhile, Hong Kong's current IPO environment—marked by regulatory support and investor enthusiasm—creates an optimal window for capital raising.

A potential $1 billion listing in Hong Kong would not only accelerate Victory Giant's global ambitions but also serve as a bellwether for the sector's long-term viability. Given the company's trailing 12-month earnings per share (EPS) of $0.30 and a forward P/E ratio of 33x (as of July 2025), the stock appears undervalued relative to its growth trajectory.

In conclusion, Victory Giant Technology represents a high-conviction opportunity for investors willing to bet on the convergence of AI, smart manufacturing, and Asia's capital markets. While the path ahead is not without risks, the company's strategic positioning and the HKSAR's tech-friendly ecosystem make it a compelling candidate for a transformative listing that could redefine its role in the global PCB landscape.