Analysis of Kinwong Electronics' Automotive PCB Business and Customer Concentration Risk

Now let me conduct a comprehensive analysis of customer concentration risk for you.

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Kinwong Electronics (Stock Code: 603228.SS) is a leading printed circuit board (PCB) manufacturer in China, with a diverse product portfolio including multi-layer boards, HDI boards, flexible circuit boards, metal-based circuit boards, etc. The company’s products are widely used in multiple sectors such as automotive, next-generation communication technologies, AI servers, data centers, AIoT, consumer electronics, industrial control, and healthcare[0].

As of January 2026, the company has a market capitalization of approximately USD 7.06 billion, with a current share price of USD 77.01, representing a 180.24% increase over the past year, significantly outperforming the market[0].

According to Prismark statistics,

[1]. The company’s automotive PCB business accounts for approximately of total revenue, serving as a key revenue pillar. The company has accumulated a large number of high-quality customers in this field, covering global leading Tier1 manufacturers (such as Hella, Kostal, Desay SV, Valeo, etc.) as well as domestic leading automakers and intelligent driving solution providers[1].

The automotive electronics sector has extremely high qualification requirements for suppliers, with long product certification cycles and high supply barriers, which also means strong customer stickiness and relatively stable cooperative relationships.

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Indicator	Value	Industry Comparison
Sales Share of Top 5 Customers (2024)	23.11%	Lowest among A-share PCB manufacturers with over RMB 10 billion in revenue
Sales Share of Top 1 Customer	<10%	No over-reliance on a single major customer
Concentration Ratio of Top 5 Accounts Receivable	15.13%	At a relatively low level

According to public data, the sales share of Kinwong Electronics’ top 5 customers shows a trend of steady decline:

Year	Sales Share of Top 5 Customers
2017	23.68%
2022	~20%
2023	18.98%
2024	23.11%

This trend indicates that the company

by continuously expanding new customers and optimizing customer structure to diversify risks[2].

Among the 5 A-share PCB manufacturers with revenue exceeding RMB 10 billion, Kinwong Electronics has the

sales share from top 5 customers:

Company	Sales Share of Top 5 Customers	Key Customer Characteristics
Kinwong Electronics	Lowest (~20%)	Dispersed customers, low reliance on single major customer
Unimicron Technology (China)	Relatively high	High sales share from Apple
WUS Printed Circuit	Relatively high	66% revenue from communications sector, high customer concentration
Shennan Circuits	Moderate	Focus on aerospace and communications

derived 66% of its revenue from the communications sector in 2022, resulting in relatively higher customer concentration risk[2]. In comparison, Kinwong Electronics has a more balanced customer structure and stronger risk resistance.

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Based on a comprehensive judgment of the following factors, Kinwong Electronics’ customer concentration risk is within a

:

Factor	Analysis
High Customer Dispersion	The top 5 customers account for only 23.11% of total sales, with a single customer accounting for <10% of sales; there is no heavy reliance on a single major customer
Diverse Downstream Industries	Although the automotive business accounts for 45.9% of revenue, customers cover multiple types including Tier1 manufacturers, automakers, and intelligent driving solution providers, diversifying single-customer risks
High Customer Qualification Barriers	Customers in sectors such as automotive and servers have long certification cycles and high requirements, leading to stable customer relationships and low customer churn
Continuous Expansion of New Customers	The company continuously taps into the demand of existing customers while expanding new customers and introducing new designated projects
Dispersed Accounts Receivable	The concentration ratio of the top 5 accounts receivable counterparties is only 15.13%, so the risk of payment collection is controllable

Factor	Potential Impact
Cyclical Fluctuations in the Automotive Industry	The high proportion of automotive PCB business may affect the company’s performance if downstream auto sales decline or price competition intensifies
Downstream Customers Concentrated in Leading Tier1s	Although the share of a single major customer is low, adjustments to supply chain strategies by leading Tier1 manufacturers may still have an impact
Reliance on Export Business	Exports account for 41.09% of revenue; attention should be paid to the impact of US tariff policies on the company’s export business[1]
Raw Material Cost Pressure	Direct materials account for a high proportion of costs; price increases of raw materials such as gold salts may compress profit margins

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• World’s largest automotive PCB supplier
  (Prismark 2024 data)
• Ranked 10th globally in the printed circuit board industry and 3rd among domestic PCB manufacturers in China’s top 100 list in 2024
• Awarded official Intel AIBC® certification, currently the only PCB manufacturer in mainland China to receive this certification
• Added 30 invention patents in 2024, with the total number of patents ranking among the top in the industry[1]

The company has 5 major production bases in Shenzhen (Guangdong), Longchuan (Guangdong), Jishui (Jiangxi), Jinwan (Zhuhai), and Fushan (Zhuhai), with a total of 11 factories,

. In addition, the company is building an overseas production base in Thailand to better meet the needs of international customers and enhance supply chain risk resistance[2].

The company’s customers cover

in multiple sectors including communications and mobile network equipment, automotive electronics, industrial control, home appliances, smart terminals, and healthcare. Due to the high certification thresholds and long cycles for customers in sectors such as automotive and servers, once cooperative relationships are established, which is conducive to long-term stable development[2].

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Dimension	Rating	Explanation
Customer Concentration Risk	Low	Top 5 customers account for 23.11% of sales, far below the industry average
Business Structure Risk	Moderate	Automotive business accounts for 45.9% of revenue; attention should be paid to the automotive industry cycle
Customer Quality	Excellent	Global leading Tier1 manufacturers with high customer qualification barriers
Growth Potential	Good	Demand growth driven by AI servers and automotive intelligence

1. Downstream Demand Fluctuation Risk
   : Changes in downstream demand such as auto sales and server capital expenditures may affect the company’s performance
2. Intensified Industry Competition
   : The increasingly fierce competition in the PCB industry may put pressure on gross margins
3. Raw Material Price Fluctuation Risk
   : Price fluctuations of raw materials such as copper and gold salts affect the cost side
4. Geopolitical and Tariff Risks
   : Exports account for 41.09% of revenue; attention should be paid to changes in international trade policies

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With Kinwong Electronics’ automotive PCB business accounting for 45.9% of revenue,

. The company’s top 5 customers account for only 23.11% of total sales, which is the lowest among A-share PCB manufacturers with over RMB 10 billion in revenue; the reliance on a single major customer is low, and the customer structure is dispersed and of high quality.

The company’s core competitiveness lies in:

• Market position as the world’s largest automotive PCB supplier
• High-quality customer resources covering global leading Tier1 manufacturers
• Strong customer stickiness brought by high customer certification barriers
• Continuous technological innovation and patent accumulation

It is recommended that investors focus on the growth potential of the company’s AI server business and the commissioning progress of the Thailand production base. At the same time, continuous attention should be paid to the prosperity of the automotive industry, changes in orders from major downstream customers, and the impact of international trade policies.

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[0] Jinling API - Kinwong Electronics Company Overview and Financial Data (603228.SS)
[1] China Securities Pengyuan - 2025 Follow-Up Rating Report for Shenzhen Kinwong Electronics Co., Ltd. (https://stockmc.xueqiu.com/202506/603228_20250627_R0RP.pdf)
[2] Huajin Securities - In-Depth Analysis Report on Kinwong Electronics: Diversified Product Layout, Gradual Implementation of Globalization Strategy (https://aigc.idigital.com.cn/djyanbao/【华金证券】产品布局多元化，全球化战略逐步落地-2024-08-10.pdf)