Market Performance - The State-Owned Enterprise Reform Index (399974) closed at 1924.72 points, up 0.95%, with a trading volume of 188.78 billion yuan and a turnover rate of 0.92% [1] - Among the index constituents, 65 stocks rose, with Shengyi Technology leading with a 10.0% increase, while 30 stocks fell, with Western Superconducting leading the decline at 4.36% [1] Key Constituents - The top ten constituents of the State-Owned Enterprise Reform Index include: - Zijin Mining: 3.46% weight, latest price 30.98, up 5.02%, market cap 823.37 billion yuan [1] - Northern Huachuang: 3.02% weight, latest price 412.38, up 2.58%, market cap 298.60 billion yuan [1] - CITIC Securities: 2.94% weight, latest price 29.69, up 2.27%, market cap 440.02 billion yuan [1] - Changjiang Electric Power: 2.80% weight, latest price 27.93, down 0.21%, market cap 683.40 billion yuan [1] - Other notable constituents include China Merchants Bank, Wrigley, and China Shipbuilding [1] Capital Flow - The net inflow of main funds into the index constituents totaled 1.871 billion yuan, while retail funds experienced a net outflow of 1.499 billion yuan [3] - Key stocks with significant main fund inflows include: - Changan Automobile: 651 million yuan net inflow, 20.30% of main fund [3] - Zijin Mining: 563 million yuan net inflow, 5.09% of main fund [3] - CITIC Securities: 488 million yuan net inflow, 8.45% of main fund [3] - Retail funds saw significant outflows from stocks like Shengyi Technology and Zhongke Shuguang [3]

Market Overview - The component sector increased by 4.65% on October 15, with Weir leading the gains [1] - The Shanghai Composite Index closed at 3912.21, up 1.22%, while the Shenzhen Component Index closed at 13118.75, up 1.73% [1] Top Gainers in the Component Sector - Weir Shang (301251) closed at 58.56, up 13.16% with a trading volume of 85,600 shares and a turnover of 480 million [1] - Xingsen Technology (002436) closed at 20.64, up 10.02% with a trading volume of 1,079,800 shares and a turnover of 2.114 billion [1] - Shengyi Technology (600183) closed at 62.06, up 10.00% with a trading volume of 577,500 shares and a turnover of 3.402 billion [1] - Jianghai Co., Ltd. (002484) closed at 30.77, up 6.84% with a trading volume of 377,700 shares and a turnover of 1.133 billion [1] Market Capital Flow - The component sector saw a net inflow of 1.737 billion from main funds, while retail funds experienced a net outflow of 668 million [2] - The main funds showed a significant interest in Shenghong Technology (300476) with a net inflow of 694 million [3] - Xingsen Technology (002436) also attracted main fund inflows of 206 million, indicating strong institutional interest [3] Individual Stock Performance - Shenghong Technology (300476) had a net inflow of 694 million from main funds, but saw a net outflow of 285 million from speculative funds and 409 million from retail investors [3] - Shengyi Technology (600183) experienced a net inflow of 482 million from main funds, with outflows from both speculative and retail investors [3] - Xingsen Technology (002436) had a net inflow of 206 million from main funds, but faced outflows from speculative and retail investors [3]

Group 1 - The core viewpoint of the news is that Shengyi Technology's stock has seen a significant increase of 5.02%, reaching a price of 59.25 CNY per share, with a total market capitalization of 143.93 billion CNY [1] - Shengyi Technology, established on June 27, 1985, is located in Dongguan, Guangdong Province, and was listed on October 28, 1998. The company specializes in the design, production, and sales of various electronic materials, including copper-clad laminates and printed circuit boards [1] - The main revenue composition of Shengyi Technology includes copper-clad laminates and bonding sheets at 65.96%, printed circuit boards at 28.63%, and other segments contributing 6.41% [1] Group 2 - Dongxing Fund has one fund heavily invested in Shengyi Technology, specifically the Dongxing Digital Economy Mixed Fund A, which reduced its holdings by 10,400 shares in the second quarter, now holding 59,700 shares, representing 4.54% of the fund's net value [2] - The Dongxing Digital Economy Mixed Fund A was established on January 16, 2024, with a current scale of 15.40 million CNY and has achieved a year-to-date return of 28.75% [2] - The fund manager, Zhou Hao, has been in position for 1 year and 274 days, with the fund's total assets amounting to 39.68 million CNY, achieving a best return of 45.47% during his tenure [3]

Core Viewpoint - The company, Tongyu New Materials (301630), announced on October 14 that its main customers include well-known companies in the copper-clad laminate industry, indicating a strong market presence and customer base [1] Group 1: Customer Base - Major customers of the company include Jiantao Group, Shengyi Technology (600183), Nanya New Materials, Huazheng New Materials (603186), Ultrasonic Electronics (000823), and Jinbao Electronics, highlighting the company's significant partnerships in the industry [1] - The company's products are primarily used in the copper-clad laminate industry, which serves various sectors such as computers, consumer electronics, automotive electronics, and communications [1]

Investment Rating - The report maintains a "stronger than the market" rating for the electronic industry, indicating a positive outlook for the sector [2][31]. Core Viewpoints - The report expresses optimism regarding the overall opportunities in the computing power and storage industry chains, particularly focusing on domestic computing power and storage sectors. It highlights improvements in supply-side conditions for domestic computing chips and increasing demand driven by AI-related capital investments [2][31]. - The report anticipates a significant increase in demand for DRAM and NAND due to the continuous release of large models, with expectations for a major expansion year for storage in the upcoming year [2][31]. Summary by Sections Market Review - The electronic industry outperformed the overall market during the week of September 29-30, with the Shenwan Electronic Index rising by 2.78%, ranking 6th among 31 Shenwan industries. Year-to-date, the index has increased by 53.51%, ranking 3rd [12][31]. Weekly Focus - OpenAI's release of the Sora 2 model is expected to significantly increase demand for computing and storage capabilities. Additionally, Samsung and SK Hynix have signed an agreement to supply memory chips for OpenAI's data centers, indicating a growing collaboration in the AI sector [25][27]. - The report notes that Longxin Technology is progressing towards its IPO, which is anticipated to enhance its market presence in the DRAM sector [29][30]. - The report also mentions that major DRAM manufacturers have paused pricing for a week, which may lead to a price increase of over 30% in the fourth quarter [30][31]. Industry Opportunities - The report emphasizes the potential in the domestic computing power chain, highlighting key players such as Cambricon, Haiguang Information, and Chipone. It also points out the expected growth in the storage sector, particularly for NAND and DRAM, driven by new product launches from Yangtze Memory Technologies and Longxin [2][31]. - The overseas computing power chain is also noted for its rapid growth, with significant capacity expansions expected in PCB manufacturing [31]. Valuation - As of October 9, 2025, the electronic industry's valuation (PE-TTM) stands at 67.72 times, which is considered to be at a historical mid-level [20][23].

Group 1 - The core point of the news is that Shengyi Technology's stock price increased by 5.06% to 58.37 CNY per share, with a trading volume of 1.703 billion CNY and a market capitalization of 141.796 billion CNY as of October 10 [1] - Shengyi Technology, established on June 27, 1985, and listed on October 28, 1998, is located in Dongguan, Guangdong Province, and specializes in the design, production, and sales of various electronic materials, including copper-clad laminates and printed circuit boards [1] - The main revenue composition of Shengyi Technology includes copper-clad laminates and bonding sheets (65.96%), printed circuit boards (28.63%), comprehensive utilization of waste resources (3.37%), and others (2.04%) [1] Group 2 - According to data, one fund under China Europe Fund holds a significant position in Shengyi Technology, with the China Europe Potential Value Flexible Allocation Mixed A Fund (001810) holding 1.3811 million shares, accounting for 3.4% of the fund's net value, ranking as the eighth largest holding [2] - The China Europe Potential Value Flexible Allocation Mixed A Fund was established on September 30, 2015, with a latest scale of 935 million CNY, achieving a year-to-date return of 31.68% and a one-year return of 35.22% [2] - The fund manager, Fu Beijia, has been in charge for 2 years and 250 days, with the fund's total asset scale at 2.166 billion CNY, achieving a best return of 32.23% and a worst return of -28.44% during his tenure [3]

Group 1 - The article emphasizes the critical role of ABF film (Ajinomoto Build-up Film) in the semiconductor industry, highlighting its importance as a key material for high-density interconnection and high-speed transmission in advanced chip packaging [2][4][5] - ABF film is predominantly produced by Ajinomoto, which holds over 95% of the global market share, creating a near monopoly in the industry [44][45] - The demand for ABF film is driven by the rapid advancements in AI, 5G communication, high-performance computing, and automotive electronics, with projections indicating significant market growth in the coming years [43][28] Group 2 - The global IC packaging substrate market is expected to reach approximately 96.1 billion yuan in 2024 and grow to 135.03 billion yuan by 2028, with a compound annual growth rate (CAGR) of 8.8% [31][32] - The market for storage chip packaging substrates is projected to grow from 13.26 billion yuan in 2023 to 18.95 billion yuan by 2028, while logic chip packaging substrates are expected to increase from 38.76 billion yuan to 55.40 billion yuan in the same period [31][33] - The article outlines the competitive landscape of the ABF film market, noting that domestic companies in China are beginning to emerge but still lag behind established players like Ajinomoto [44][45][48] Group 3 - ABF film's unique properties, such as low thermal expansion and excellent dielectric performance, make it suitable for high-density wiring and high-frequency applications, which are essential for modern electronic systems [7][25][29] - The article discusses the technological barriers to entry in the ABF film market, including patent protections, customer certification processes, and economies of scale that favor established manufacturers [48][49] - The future of ABF film is linked to advancements in chip technology, with expectations for even finer line widths and lower loss characteristics to meet the demands of next-generation applications [22][28][30]

Core Viewpoint - High-tech enterprises play an irreplaceable role in fostering and expanding new productive forces, with over 60% of A-share market comprised of such companies [1]. Group 1: High-tech Enterprises Overview - A total of 130 high-tech companies identified as "technology-leading companies" based on research reports from 62 brokerage firms, focusing on technology strength and secondary market performance [1]. - Among these, several companies are expected to break monopolies or focus on key industries, including Yirui Technology, Lite-On Optoelectronics, and Changyang Technology [1]. Group 2: Shareholder Changes and Profit Forecasts - Out of the 130 companies, 11 have seen a decrease in shareholder numbers compared to the end of Q2, with 4 companies experiencing a decline of over 10% [1]. - Among the companies with concentrated shareholding, only 5 are predicted to have a net profit growth exceeding 10% in 2025 and 2026 [2]. Group 3: Performance Metrics of Leading Companies - Notable companies and their performance include: - Shengyi Technology: 131.34% increase, leading in high-end products [3]. - Rilian Technology: 105.74% increase, benefiting from domestic substitution and structural growth [3]. - Jizhi Technology: 82.65% increase, breaking foreign monopolies in high-end fields [3]. - Yirui Technology: 70.95% increase, a one-stop supplier for X-ray imaging equipment [3]. - Changyang Technology: 58.23% increase, leading in domestic CPI film and global reflective film [3]. - Guokai Micro: 45.29% increase, aiming to break overseas filter monopolies [3]. - Dike Digital: 22.03% increase, set to become Huawei's top partner in the government sector [3]. - United Imaging Healthcare: 20.09% increase, breaking the medical imaging monopoly [3]. - Caite Optoelectronics: 10.18% increase, leading in domestic OLED materials [3]. - Zhongke Technology: 6.87% increase, breaking foreign monopolies in core equipment [3]. Group 4: Shareholder Metrics and Profit Growth - Companies with significant shareholder changes and their performance include: - Yisuo Technology: 12.15% decrease in shareholder numbers, 189.44% increase in stock price [6]. - Dike Digital: 11.78% decrease, 22.03% increase in stock price [6]. - Beida Pharmaceutical: 9.04% decrease, 24.29% increase in stock price [6]. - Northern Navigation: 5.15% decrease, 53.13% increase in stock price [6]. - Langxin Group: 40.28% increase in shareholder numbers, 61.89% increase in stock price [6].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Asia-Pacific Technology sector**, specifically **Copper Clad Laminate (CCL)** and **Printed Circuit Board (PCB)** industries, with a particular emphasis on companies like **Elite Material (EMC)**, **Taiwan Union Technology Corporation (TUC)**, **Unimicron**, and **Shengyi**. Core Insights and Arguments 1. **CCL and PCB Market Dynamics** - Continuous specification upgrades are observed in both CCL and PCB sectors, with a notable transition in AWS products expected to last until **1Q26**. The upgrade in CCL materials, particularly in copper foil, is highlighted as a significant trend [1][2][3]. 2. **EMC's Position** - EMC is positioned as a prime beneficiary of the adoption of **M9-grade CCL**, particularly for mid-plane applications with **40+ layers of PCB**. The demand for CCL is expected to increase due to additional PCB requirements from **CX9 networking cards** and **CPX GPUs** [2]. 3. **TUC's Outlook** - TUC is anticipated to benefit from the mainstream adoption of **M8-grade CCL** in AI servers by **2026**. The company is also expected to see a mix improvement in low earth orbit (LEO) applications, transitioning from **M6 to M7** materials [3]. 4. **Unimicron's Financial Projections** - Unimicron's estimates for **2026-27 EPS** have been raised by **2-6%** due to the positive impact of the VR NVL144 CPX. The price objective has been adjusted to **NT$110** from **NT$105**, maintaining a **13.5x 2026E P/E** [4][9]. 5. **Shengyi's Revenue Growth** - Shengyi has increased its revenue exposure to AI and infrastructure-related business to approximately **35%**. The price objective has been raised to **CNY32** from **CNY27.5**, with a higher P/E multiple of **18x** [5][21]. Additional Important Insights 1. **Market Competition** - The competitive landscape for CCL is less crowded compared to PCB, which is a favorable condition for companies like EMC and TUC [1]. 2. **Revenue Stagnation in Certain Segments** - Despite growth in AI-related business, Shengyi still derives about **40%** of its revenue from consumer electronics and industrial verticals, which are experiencing stagnant demand [5]. 3. **Valuation Adjustments** - The valuation multiples for Unimicron and Shengyi have been adjusted based on their respective market positions and growth prospects, reflecting a strategic response to evolving market conditions [9][10]. 4. **Risks and Challenges** - Potential risks include competition in high-end CCL, fluctuations in raw material prices, and execution challenges that could impact market share and business traction for these companies [20][24][26]. 5. **Analyst Ratings** - The report includes various investment ratings for the companies discussed, with EMC and TUC rated as **Buy**, while Unimicron and Shengyi are underperforming relative to their peers [19][30]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the CCL and PCB industries, along with specific company analyses.

Core Viewpoint - Shengyi Technology achieved a net profit attributable to shareholders of 1.426 billion yuan in the first half of 2025, representing a year-on-year increase of 52.98% [1] - The company’s Q2 net profit reached 863 million yuan, showing a year-on-year growth of 59.67% and a quarter-on-quarter increase of 53.08% [1] - The report indicates that Shengyi Technology's performance is in line with expectations and highlights its strong market performance [1] Financial Performance - In H1 2025, Shengyi Technology's net profit attributable to shareholders was 1.426 billion yuan, up 52.98% year-on-year [1] - Q2 2025 net profit was 863 million yuan, reflecting a 59.67% year-on-year increase and a 53.08% quarter-on-quarter growth [1] Market Position - According to Prismark, Shengyi Technology has maintained the second position globally in rigid copper clad laminate sales from 2013 to 2024 [1] - The company is projected to achieve a global market share of 13.7% in 2024 [1] Technology and Industry Outlook - Shengyi Technology is recognized for its leading high-frequency and high-speed copper clad laminate technology [1] - The company is well-positioned to benefit from the significant growth in downstream AI computing power demand [1] - The report initiates coverage with a "Buy" investment rating for Shengyi Technology [1]