Investment Overview - Guangdong Shengyi Technology Co., Ltd. has approved an investment of 1.4 billion RMB (approximately 200 million USD) to establish a production base for copper-clad laminates and bonding sheets in Thailand [2] - The investment includes setting up a company in Thailand, purchasing land, and constructing fixed assets, with the actual investment amount subject to approval by Chinese and local authorities [2] - The company has completed the registration of its Thai subsidiary, Shengyi Technology (Thailand) Co., Ltd., with a registered capital of 5 million THB [2] Progress Update - The registered capital of Shengyi Technology (Thailand) has been increased from 326.6 million THB to 615.075 million THB to meet the funding needs for construction and operation [3] - The investment has been approved by the company's board of directors and does not require shareholder approval, as it does not constitute a related party transaction or a major asset restructuring [3] Company Details - Shengyi Technology (Thailand) Co., Ltd. has a registered capital of 615.075 million THB and focuses on the research, production, and sales of high-end electronic materials, including copper-clad laminates and resin-coated copper foils [4] Investment Incentives - Shengyi Technology (Thailand) has received an investment promotion certificate from the Thailand Board of Investment (BOI), allowing it to own a specified amount of land and exempting it from import duties on approved equipment [6] - The company is eligible for an 8-year corporate income tax exemption on net profits up to 100% of the investment, with provisions for loss carryforward [6] - Import duties on raw materials necessary for production and export are also exempt for one year from the first import [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue of 20.388 billion yuan for 2024, representing a year-on-year growth of 22.92% compared to 2023, and a net profit of 1.739 billion yuan, which is a 49.37% increase from 2023's net profit of 1.164 billion yuan [5] - In Q1 2025, the company achieved a revenue of 5.611 billion yuan, a 26.86% increase year-on-year from Q1 2024, and a net profit of 564 million yuan, up 43.76% from the same period in 2024 [5] - The company has established itself as a leading supplier of copper-clad laminates, benefiting from the demand in the computing power era, with applications in various high-tech fields [5][6] Financial Performance - The company is expected to achieve revenues of 23.887 billion yuan, 27.552 billion yuan, and 30.972 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 2.617 billion yuan, 3.359 billion yuan, and 3.869 billion yuan for the same years [9] - The projected P/E ratios for 2025, 2026, and 2027 are 22.55, 17.57, and 15.25 respectively [9] - The company’s gross margin is expected to improve from 22.0% in 2024 to 25.0% by 2026 [11] Market Position - According to Prismark, the company ranked second globally in rigid copper-clad laminate sales from 2013 to 2023, achieving a market share of 14% in 2023 [6] - The company has made significant advancements in high-frequency and high-speed packaging substrate technologies, overcoming foreign technology barriers [6] Research and Development - The company has invested in the development of halogen-free low-loss copper-clad laminates for next-generation server platforms, addressing market demands for AI servers and high-speed transmission links [7][8] - The company has established a national-level engineering technology research center, focusing on key technological issues in the industry and continuously developing high-value-added new products [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced rapid growth, benefiting significantly from the computing power era, with 2024 revenue reaching 20.388 billion yuan, a year-on-year increase of 22.92%, and a net profit of 1.739 billion yuan, up 49.37% from 2023 [5] - In Q1 2025, the company reported revenue of 5.611 billion yuan, a 26.86% increase year-on-year, and a net profit of 564 million yuan, reflecting a 43.76% growth compared to Q1 2024 [5] - The company has established itself as a leading supplier of copper-clad laminates, with a global market share of 14% in 2023, ranking second in total sales of rigid copper-clad laminates [6] Financial Performance - The company is projected to achieve revenues of 23.887 billion yuan, 27.552 billion yuan, and 30.972 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to be 2.617 billion yuan, 3.359 billion yuan, and 3.869 billion yuan for the same years [9] - The expected P/E ratios for 2025, 2026, and 2027 are 22.55, 17.57, and 15.25 respectively [9] - Key financial metrics for 2024 include a gross margin of 22%, a return on equity (ROE) of 11.7%, and earnings per share (EPS) of 0.74 yuan [11] Research and Development - The company has invested in the development of halogen-free low-loss copper-clad laminates for next-generation server platforms, addressing market demands for AI servers and high-speed transmission links [7][8] - The company has established a national-level engineering technology research center, focusing on key technological issues in the industry and continuously developing high-value-added new products [6]