Dongguan Securities·2025-12-31 08:02Investment Rating - The report maintains an "Overweight" rating for the copper-clad laminate industry, indicating an expectation that the industry index will outperform the market index by more than 10% over the next six months [96]. Core Insights - The copper-clad laminate market is expected to recover in 2024, with global sales projected to reach $15.013 billion, representing a year-on-year growth of 17.90%. This recovery is attributed to the resurgence in consumer electronics demand and increased requirements for high-end copper-clad laminates driven by AI computing power [6][27]. - A new wave of price increases is anticipated in the copper-clad laminate sector, driven by rising raw material costs, high demand from downstream PCB manufacturers, and the concentrated market share of laminate manufacturers, which grants them significant pricing power [6][47]. - AI is driving the high-end product development in the copper-clad laminate market, with expectations for increased value as new platforms from companies like NVIDIA adopt advanced materials [65][71]. Summary by Sections 1. Market Recovery and Applications - Copper-clad laminates are widely used in various sectors, including consumer electronics, computers, communications, and automotive electronics. The market is set to recover in 2024, reversing a two-year decline [14][27]. 2. Price Increase Trends - Historical data shows that the copper-clad laminate industry has experienced two major price increase cycles in the past decade, primarily driven by rising raw material costs and strong end-user demand. Current trends indicate that manufacturers are already implementing price hikes due to increased costs of copper and other materials [38][44][55]. 3. AI-Driven High-End Product Development - The demand for high-performance copper-clad laminates is increasing due to AI computing requirements. The introduction of new materials, such as M8.5+ and M9, is expected to significantly enhance product value and performance [65][71]. 4. Investment Recommendations - The report suggests focusing on two main investment lines: companies benefiting from the price increases of conventional copper-clad laminates and those with high-end laminate or electronic copper foil product reserves. Key companies identified include Shengyi Technology, Nanya New Material, Huazheng New Material, Jin'an Guoji, Defu Technology, and Tongguan Copper Foil [93].