Stock Analysis & Valuation Olympic Circuit Technology Co., Ltd (603920.SS)

• Previous Close: $62.33
• Sector Valuation Confidence Level: Low

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	43.61	-30
Intrinsic value (DCF)	17.10	-73
Graham-Dodd Method	7.58	-88
Graham Formula	20.54	-67

Strategic Investment Analysis

Company Overview

Olympic Circuit Technology Co., Ltd is a prominent Chinese manufacturer specializing in rigid printed circuit boards (PCBs), serving diverse global markets since its founding in 1985. Headquartered in Heshan, China, the company produces a comprehensive range of PCB products including single-sided, complex, and multi-layer boards essential for modern electronics. Olympic Circuit Technology's customer base spans high-growth sectors such as automotive electronics, medical devices, data and telecommunications infrastructure, computer peripherals, industrial equipment, and consumer products. As a key player in the technology hardware sector, the company leverages China's manufacturing ecosystem to deliver essential components that power electronic devices worldwide. With over three decades of industry experience, Olympic Circuit Technology has established itself as a reliable supplier in the global PCB market, contributing significantly to the electronics value chain. The company's strategic positioning in China's Guangdong province provides access to skilled labor and supply chain advantages, enabling competitive production capabilities for international and domestic clients seeking high-quality PCB solutions.

Investment Summary

Olympic Circuit Technology presents a mixed investment profile with several positive financial metrics offset by sector-specific challenges. The company demonstrates solid profitability with net income of 675 million CNY on 5 billion CNY revenue, translating to healthy margins in the competitive PCB manufacturing space. Strong operating cash flow of 988 million CNY and substantial cash reserves of 1.9 billion CNY provide financial stability, while moderate debt levels (437 million CNY) indicate conservative leverage. The 0.6 CNY dividend per share offers income appeal, supported by a beta of 0.497 suggesting lower volatility than the broader market. However, investors should consider the capital-intensive nature of PCB manufacturing, evidenced by significant capital expenditures, and the competitive pressures in China's electronics component sector. The company's exposure to cyclical end-markets, particularly automotive and consumer electronics, introduces revenue volatility risk despite its diversified customer base.

Competitive Analysis

Olympic Circuit Technology operates in the highly competitive global PCB manufacturing industry, where Chinese companies dominate production capacity but face intense price competition and margin pressures. The company's competitive positioning relies on its established manufacturing expertise, diverse product portfolio spanning from simple to complex multi-layer PCBs, and broad market reach across multiple industries. Its nearly 40-year operating history provides institutional knowledge and customer relationships that newer entrants lack. However, the PCB sector is characterized by fragmentation, with numerous competitors ranging from large-scale manufacturers to specialized niche players. Olympic Circuit's focus on rigid PCBs positions it in the mainstream market segment, but it may face challenges from competitors offering more advanced technologies like flexible PCBs or HDI boards. The company's Chinese base provides cost advantages but also exposes it to trade tensions and supply chain disruptions. Its diversified end-market exposure across automotive, medical, and telecommunications provides stability but requires maintaining technical capabilities across different PCB specifications and quality standards. The moderate capital expenditures suggest a focus on operational efficiency rather than aggressive capacity expansion, which could limit growth but preserve profitability in a competitive landscape.

Major Competitors

• Shennan Circuits Co., Ltd (002916.SZ): Shennan Circuits is a leading PCB manufacturer in China with stronger technological capabilities in high-end multilayer and HDI boards. The company benefits from larger scale and more advanced manufacturing facilities, giving it an edge in sophisticated applications like 5G infrastructure and high-performance computing. However, Shennan Circuits faces higher complexity costs and may be less competitive in standard PCB segments where Olympic Circuit Technology operates. Its larger size provides economies of scale but also reduces flexibility in serving diverse customer needs.
• Suzhou Dongshan Precision Manufacturing Co., Ltd (002384.SZ): Dongshan Precision has diversified beyond traditional PCBs into display components and assembly services, creating a more integrated offering. The company's vertical integration provides cost advantages but also increases operational complexity. Its stronger presence in consumer electronics, particularly through relationships with major smartphone manufacturers, gives it scale advantages but also creates customer concentration risks. Olympic Circuit Technology's broader industrial and automotive focus may provide more stable demand compared to Dongshan's consumer electronics exposure.
• Shengyi Technology Co., Ltd (603228.SS): Shengyi Technology is unique as it manufactures PCB base materials (copper-clad laminates) in addition to finished PCBs, giving it supply chain integration benefits. This vertical integration provides cost control and quality assurance advantages but requires significant capital investment across multiple manufacturing processes. The company's technical expertise in materials science differentiates it from pure-play PCB manufacturers like Olympic Circuit Technology. However, Shengyi's broader scope may dilute focus on PCB manufacturing optimization compared to Olympic Circuit's specialized approach.
• Shenzhen Fastprint Circuit Tech Co., Ltd (002815.SZ): Fastprint Circuit Tech specializes in quick-turnaround PCB prototyping and small-to-medium volume production, targeting different market segments than Olympic Circuit Technology's likely focus on larger production runs. The company's rapid response capabilities appeal to customers needing fast design iterations but may limit economies of scale. Fastprint's business model complements rather than directly competes with Olympic Circuit's approach, though both operate in China's competitive PCB landscape and may overlap in certain customer segments seeking reliable manufacturing partners.
• TTM Technologies, Inc. (TTMI): TTM Technologies is a global PCB manufacturer with strong positions in aerospace, defense, and medical markets where reliability requirements exceed consumer electronics standards. The company's North American and Asian manufacturing footprint provides geographic diversification but higher cost structure compared to China-based competitors. TTM's technological capabilities in complex, high-reliability PCBs differentiate it from Olympic Circuit Technology's likely focus on commercial-grade products. However, TTM faces competitive pressure from lower-cost Chinese manufacturers in standard PCB segments.