A PCB (Printed Circuit Board) manufacturer, Dynamic Holding (3715.TW) anticipates a year of growth in 2025, driven by steady demand for automotive boards and a significant rebound in networking and server applications. Analysts project double-digit revenue growth for the year, with gross margins expected to improve as the company ramps up production at its new Thailand facility and increases the proportion of high-end HDI products.

Dynamic has allocated a capital expenditure budget of NT$3 billion (about 660 million yuan or $91 million) for 2025, primarily for the Thailand facility. Depreciation expenses are estimated to range between NT$1.6 billion and NT$1.8 billion.

Dynamic's Thailand facility, which began operations in the first quarter with a monthly capacity of 500,000 square feet, is currently running at a 50% utilization rate. The plant is undergoing customer audits and sample certifications. Production is underway for high-end automotive boards, while general server boards are being produced in small volumes. Samples for AI servers and switches are also in development. The company expects the Thailand plant to achieve break-even within a year.

In 2024, Dynamic's product mix was dominated by automotive boards, accounting for 69% of revenue, followed by display panels (12%), storage devices (8%), networking and servers (7%), consumer electronics (2%), and computing peripherals (3%). For 2025, the company expects automotive boards to maintain moderate growth, while networking and server applications are poised for more substantial expansion.

In the near term, Dynamic estimates first-quarter revenue to be flat compared to the previous quarter, with a utilization rate of 80-85%. The company currently has about one month of order visibility.

While gross margins in the first half of 2025 may be impacted by the initial production phase in Thailand, Dynamic anticipates improvements in the second half as the learning curve progresses and the share of high-end HDI products increases. The company aims to achieve higher gross margins for the full year compared to 2024.

Dynamic's strategic focus on expanding its Thailand operations and enhancing its product portfolio underscores its commitment to maintaining competitiveness in the PCB industry. With a balanced approach to growth and operational efficiency, the company is well-positioned to capitalize on emerging opportunities in automotive, networking, and server markets.