Investment Rating - The report maintains a "Buy" rating for Shengyi Technology (600183 CH) with a target price of 90 CNY, highlighting its leadership in the PCB and copper-clad laminate market [1]. Core Insights - The global PCB and copper-clad laminate industry is in the early stages of a structural upcycle driven by AI infrastructure investments, with a notable divergence in performance between high-performance products and standard products [1][2]. - The PCB market is expected to rebound strongly in 2025 with a growth rate of 12.8%, while the copper-clad laminate sector has already seen an 18% growth in 2024, indicating stronger pricing power [1][3]. - The demand for high-layer and HDI boards is surging due to AI server deployments, leading to a "super growth cycle" for these high-performance circuit boards [2][8]. Summary by Sections PCB Market Overview - The global PCB market is projected to recover in 2024 with a 5.8% increase in sales to 74 billion USD, following a 15% decline in 2023 due to inventory destocking and weak end-demand [3]. - The recovery is primarily driven by normalizing inventory levels and early investments in AI-related infrastructure [3][4]. - The market is expected to show a strong rebound in 2025, with a projected sales area growth of 10.3% and a sales revenue growth of 12.8% [4]. Copper-Clad Laminate Market Overview - The global copper-clad laminate market is anticipated to grow by 18% in 2024, driven by a 14% increase in sales volume and a 4% rise in average selling prices [13]. - The market's performance is significantly better than that of the PCB market, showcasing superior pricing power and value-added effects from product structure optimization [13][14]. Competitive Landscape - The copper-clad laminate market is characterized by an oligopolistic structure, with the top ten suppliers holding 77% of the market share, ensuring stronger market pricing power [2][29]. - In contrast, the PCB market is more fragmented, with the top forty suppliers accounting for approximately 50% of the market share, necessitating a strategic focus on high-value segments to maintain pricing power [2][29]. Material Cost Dynamics - Copper constitutes 60%-70% of the raw material costs for PCBs, and the structural increase in copper prices, driven by supply shortages and emerging demands from AI and clean energy sectors, is reshaping the cost structure of the PCB and copper-clad laminate supply chains [16][22]. - The London Metal Exchange copper prices have risen approximately 24% this year, impacting suppliers differently based on their product focus and pricing power [16][22].