New Stock News | AI computing power "shovel seller" Suzhou Dongshan Precision Manufacturing (02384) is currently conducting its IPO subscription; optical module business becomes a new growth engine

October 20, Suzhou Dongshan Precision Manufacturing (02384) commenced its public offering today. The company plans to globally offer 114 million shares, including 11.4 million shares in Hong Kong and 103 million shares internationally. The offer period runs from October 20 to October 23, with an offer price of HK$93.80 per share, a board lot of 100 shares, and an entry fee of approximately HK$9,380. As an AI computing power "shovel seller," Suzhou Dongshan Precision Manufacturing is a manufacturer primarily focused on PCBs, precision components, touch panels and LCD modules, and optical modules. The company's products are widely used in consumer electronics, automotive, data centers, communications equipment, and industrial control equipment. In September 2025, through the acquisition of Source Photonics, the company entered the optical module business, expanding its product portfolio to include optical modules. According to CIC Consulting data, based on 2025 revenue, the company is the third-largest PCB supplier in the global PCB market, which is valued at US$85.2 billion; through Source Photonics, the company ranks seventh in the global optical module market, which is valued at US$24.5 billion, with a market share of 2.9%. As AI computing power infrastructure construction continues to advance and demand for high-speed data transmission keeps growing, demand from AI servers for high-end PCBs and optical modules has also increased accordingly. Suzhou Dongshan Precision Manufacturing has established a presence in both electrical transmission and optical transmission, forming a business structure in which PCBs, optical chips, and optical modules develop in a coordinated manner. Among these, Source Photonics has independent design and manufacturing capabilities for high-speed EML optical chips, with product transmission rates covering 2.5G to 200G, and is focusing on launching 100G and 200G PAM4 EML chips, providing 10G to 1.6T optical module products, further enhancing the company's competitiveness in the high-speed optical interconnect field. In terms of performance, in the first half of 2026, Suzhou Dongshan Precision Manufacturing achieved operating revenue of approximately RMB 27.798 billion, a year-on-year increase of 63.9%; profit was approximately RMB 2.98 billion, a year-on-year increase of 293.5%. Among this, revenue from the optical module business was approximately RMB 5.351 billion, accounting for approximately 19.2% of the group's revenue, with a gross margin of 39.2%, making it an important business segment driving the improvement in overall profitability. During the same period, the company's overall gross margin rose from 13.1% in the same period last year to 19.4%. The proceeds from this listing are intended to be used for capacity expansion of high-speed EML chips and optical modules, construction of new high-end PCB facilities, and upgrades to existing domestic production lines; part of the funds are also intended for potential strategic investments or acquisitions, repayment of existing debt, and replenishment of working capital. With the growth in demand related to AI servers and data centers, the company will further unlock the synergies between its high-end PCB and optical module businesses, translating technological and production capacity advantages into sustained performance growth momentum.