Analysis of Aisen Co., Ltd. (688720) Strong Performance: Driving Factors and Sustainability Assessment

The core reasons for Aisen Co., Ltd. (688720) becoming a strong stock include sector catalysts and the company’s own fundamental support:

1. Sector Outbreak
   : The surge in demand for AI server upgrades and data center construction has pushed the PCB industry into a high-growth cycle. The market expects the global PCB industry to grow from $75 billion in 2024 to $96.8 billion in 2029 (CAGR 5.2%), with the data communication segment (driven by AI servers) growing the fastest (CAGR 8.4%) [7]. On December 15, multiple stocks in the PCB sector hit the daily limit, and Aisen Co., Ltd. followed the sector to rise strongly [4][9].
2. Fundamental Support
   : As a core supplier of electronic chemicals in the domestic advanced packaging and wafer manufacturing fields, Aisen Co., Ltd.'s main businesses are key materials such as electroplating solutions (45.37%) and photoresists (21.91%). In the first three quarters of 2025, revenue increased by 40.71% and net profit attributable to parent company increased by 44.67%, with Q3 net profit growing 75.35% year-on-year, showing strong performance [5].

1. Price Trend
   : Recently showing a sustained upward trend, with a 1-month increase of 23.43%, 3-month 46.05%, and 6-month 70.06% [2]. On December 15, it closed at the daily limit price of 67.43 yuan (+20%) [1][3].
2. Trading Volume and Dragon Tiger List
   : The daily turnover was 934 million yuan, with a turnover rate of 25.53% (far higher than the average level), indicating active market trading [1][3]. Institutional seats net bought 45.6066 million yuan, and business departments such as Ping An Securities Hangzhou Shuguang Road participated in buying, showing institutional optimism [1][3][5].

1. Cross-domain Correlation
   : The strong performance of Aisen Co., Ltd. reflects the transmission effect of AI industry upgrading on upstream semiconductor materials, and the PCB and electronic chemicals sectors have become beneficiaries of the AI hardware cycle.
2. Institutional Capital Trends
   : The net buying of institutional seats and the recent sustained rise form a positive feedback, increasing market attention to this stock.
3. Change in Sector Valuation Logic
   : CITIC Construction Investment [8] points out that the PCB industry will be more similar to semiconductors in the future, with a steady increase in value volume, and this cognitive change may promote the revaluation of the sector.

1. Short-term Speculation Risk
   : A high turnover rate of 25.53% indicates strong short-term speculative sentiment, which may intensify price fluctuations [1][5].
2. Restricted Share Unlocking Risk
   : 1.1017 million shares (accounting for 1.25% of total share capital) were unlocked on December 8, which may increase market supply [5][6].
3. Sector Volatility Risk
   : AI hardware and semiconductor sectors are greatly affected by US stock technology stocks, and external market fluctuations may trigger adjustments [9].
4. Valuation Risk
   : Recent gains are large, so attention should be paid to the matching degree between valuation and fundamentals.

1. High Industry Prosperity
   : The AI-driven growth cycle of the PCB industry is still ongoing, and as an upstream material supplier, Aisen Co., Ltd. is expected to continue to benefit.
2. Localization Trend
   : The global share of domestic PCB companies is increasing, driving the localization of the upstream industrial chain and providing market expansion opportunities for the company [7].

The strong performance of Aisen Co., Ltd. (688720) is supported by both the AI-driven PCB sector outbreak and its own strong fundamentals. Technically, it shows an upward trend with high institutional capital participation. However, factors such as short-term speculation risk, restricted share unlocking, and sector volatility may affect the sustainability of the rise. Investors need to pay attention to key indicators such as industry demand verification, company performance continuity, and market sentiment changes.