AI computing boom triggers IPO rush by circuitry firms

Delton Tech is the latest supplier of printed circuit boards to apply for a Hong Kong listing, seeking funds to keep pace with demands from AI computing

Key Takeaways:

• The filing follows listing applications by WUS Printed Circuit and Dongshan Precision, as the PCB industry looks to expand its capacity
• Specializing in circuit boards for computing, Delton Tech has reported rising earnings, with revenues up 43% in the first nine months of the year

By Lee Shih Ta

They provide the critical circuitry for AI computing, allowing data to be processed at lightning speed, and now they are the focus for a wave of IPOs.

Printed circuit boards (PCBs) provide the backbone for consumer electronics and enable high-powered servers to carry out complex computing tasks. Suppliers of the boards largely operate out of China’s manufacturing heartland, with a low profile. But they are now stepping into the spotlight to seek investment capital to keep pace with the rapid growth of AI.

Delton Technology (Guangzhou) Inc., specializing in PCBs for advanced computing, is the latest such applicant to the Hong Kong Stock Exchange, following in the footsteps of sector peers WUS Printed Circuitand Dongshan Precision.

Their products may attract far less attention than AI chips, but they are a crucial foundation of modern computing, as cloud service providers and tech giants ramp up spending on massive data centers and AI servers. Industry research indicates AI servers will experience double-digit growth over the coming years, generating rising PCB demand. An AI server requires more PCBs than a general-purpose one, with a significantly higher value per board.

The pressure is on to produce at higher specifications as well as greater volumes, with a growing need for multi-layer PCBs that can handle ultra-fast data without a loss of efficiency. That requires manufacturing capacity, technology and funding.

Focused on computing power

Of the recent listing applicants, Delton Tech has a more specialized focus. Unlike PCB manufacturers that still derive a big revenue chunk from consumer electronics or traditional communications systems, the company defines itself in its listing application as a supplier of components for computing servers.

From 2022 to 2024, the company’s revenue rose from 2.41 billion yuan ($340 million) to 3.73 billion yuan, with computing-related PCBs increasing from 67.8% to 72.5% of the total. In the first nine months of this year, turnover jumped about 43% to 3.84 billion yuan, surpassing the full-year total for 2024, while the contribution from computing-related PCBs advanced to nearly 74% of overall revenue.

The shift towards higher grade products is also reflected in Delton’s bottom line. The company’s gross margin jumped from 26.1% in 2022 to 33.3% in 2023, held steady at 33.4% in 2024, and rose to 34.8% in the first nine months of 2025.

Robust finances

Over the same period, the firm’s net profit margin climbed from 11.6% to 18.9%, a relatively strong number for a capital-intensive manufacturer. This suggests the company’s earnings have been driven by product and manufacturing upgrades as well as by rising demand.

With accumulated profits and improved operating efficiency, the company’s gearing ratio fell from 56.6% in 2022 to 46.3% in the first nine months of this year. Operating cash flow was 760 million yuan, up 22.5% from the year-earlier period, indicating that the core business is generating cash and that expansion is not entirely reliant on external financing.

The firm’s development strategy is centered on computing power, according to its listing application. Most of the IPO proceeds would be spent on expanding capacity for high-end PCBs, particularly those with an elevated layer count used in AI servers, as well as enhancing R&D and manufacturing processes for high-speed interconnection and low-loss materials.

Promoting overseas production is also a funding priority. The company opened a production base in Thailand this year and plans further expansion, to boost output and offer customers more delivery options in a global supply chain.

Delton Tech is smaller in revenue terms than its fellow IPO applicants WUS Printed Circuit and Dongshan Precision, but it has a clearer focus on computing-related PCBs. Its strategy leans more toward deepening its presence in high-end computing applications than broadening its product portfolio.

For Hong Kong investors, the key question is whether Delton Tech can leverage its position in the specialist PCB market during a growth cycle for computing power. By doubling down on high-end server PCBs, the company is more sensitive to the AI investment cycle, categorized as a computing-related stock rather than as a traditional manufacturer.

If computing demand keeps growing, and Delton Tech manages to maintain its margins and keep expanding overseas, it could succeed in standing out from the crowd of PCB stocks.

To subscribe to Bamboo Works weekly free newsletter, click here