(Yicai) Oct. 25 -- Shares of WUS Printed Circuit advanced after the Chinese supplier of printed circuit boards said it will invest CNY4.3 billion (USD600 million) to hike its production capacity to meet the surging demand from emerging computing scenarios.

WUS Printed Circuit [SHE: 002463] was trading up 4.6 percent at CNY44.28 (USD6.21) as of 2.45 p.m. in Shenzhen today, after earlier gaining as much as 7.5 percent.

WUS Printed Circuit announced yesterday that it would build a factory with an annual production capacity of 290,000 square meters of high-end PCB in Kunshan, eastern Jiangsu province, where the company is headquartered.

The high-end PCB produced at the new plant will be used in emerging computing scenarios, such as high-speed computing servers and artificial intelligence, showing a promising market outlook, WUS Printed Circuit noted, adding that the project aligns with the company's differentiated market competition strategy centered on technological innovation and product upgrades.

The first phase of the project will cost CNY2.7 billion and have a capacity of 180,000 sqm of high-end PCB a year. Once the first phase is completed and put into operation by 2028, the project will generate about CNY3 billion in revenue and CNY558 million (USD78.3 million) in net profit per year.

The second phase, which will cost CNY1.6 billion and have an annual output of 110,000 sqm, will come on stream by the end of 2032. Afterward, the project will generate additional CNY1.8 billion in revenue and CNY285 million in net profit annually.

The plant's payback period is expected to be eight years, including construction, WUS Printed Circuit pointed out.

In February 2021, WUS Printed Circuit unveiled a plan to invest CNY2 billion to enhance its high-end PCB production capacity, with the products expected to be used in semiconductor chip testing and next-generation, high-frequency, high-speed communication devices.

However, the firm postponed the project one year later because the designated products were still in the early marketing and technology development stages.

Editor: Futura Costaglione