31 December 2025 | 8:10PM HKT Equity Research China PCB: Shengyi (600183.SS) CCL factory visit: AI capacity in expansion; Price hikes to continue in 1H26E We visited Shengyi Technology's (600183.SS, Not Covered) copper clad laminate (CCL) factory in Dongguan and talked to management on Dec 30. Shengyi is a local CCL supplier, expanding from consumer electronics, automotive to data center markets. Management expects the CCL price hike to continue in 2026E, given the rising demand from PCB clients and short s ...

Summary of Shengyi Technology Conference Call Company Overview - **Company**: Shengyi Technology (600183.SS) - **Industry**: Copper Clad Laminate (CCL) manufacturing - **Headquarters**: Dongguan, China - **Key Markets**: Consumer electronics, communication, automotive, and data center markets - **Revenue Breakdown**: CCL business accounted for 68% of total revenues in 1H25, followed by PCB business at 29% [3][4] Key Points Discussed 1. 2026 Outlook - **CCL Pricing**: The company raised CCL pricing in October due to higher raw material costs and supply constraints - **Demand Forecast**: Management is optimistic about rising CCL demand from data center clients in 2026, despite pressures from ongoing raw material price increases - **Market Stability**: Demand from consumer electronics and automotive markets has remained stable, with expected growth from AI/data center sectors supported by high-end CCL capacity expansion [4][4] 2. CCL Capacity Expansion - **Expansion Plans**: Shengyi Technology is actively expanding its CCL capacity, with new production expected to start in Thailand from 1Q26 - **Construction Progress**: The company's 'construction in progress' reached Rmb1.9 billion by the end of 3Q25, up from Rmb470 million at the end of 3Q24 - **Timeline**: Capacity expansion typically takes 14 to 16 months, with Phase I requiring more time due to infrastructure development [8][8] 3. Raw Material Supply - **Price Increases**: Management highlighted recent price hikes in raw materials, particularly fiberglass cloth, which has seen tight supply affecting both thin and thick cloth - **Cost Pressures**: The rising costs and uncertainties in raw material supply could impact profitability, as Shengyi focuses on CCL products and relies on third-party suppliers [9][9] 4. Expanding Data Center Business - **Market Diversification**: Shengyi has diversified its end markets, expecting increased contributions from AI/computing products that offer higher margins - **Client Engagement**: The company is working with both local and global-tier clients on server and switch products, focusing on the verification of new generation products [10][10] 5. AI PCB Market Insights - **Positive Market Sentiment**: Comments from Shengyi management regarding strong CCL demand from the AI/data center market align with a positive outlook for the AI PCB market growth - **Competitor Insights**: Shennan Circuits (002916.SZ) is also targeting computer/networking applications, indicating a broader industry trend towards AI-related products [2][2] Additional Insights - **Investment in HDI**: Shengyi Electronics, a subsidiary, announced a private placement plan to invest Rmb2.6 billion in HDI for AI computing applications, indicating a strategic focus on high-demand technology sectors [8][8] This summary encapsulates the key discussions and insights from the conference call regarding Shengyi Technology's current position and future outlook in the CCL and data center markets.

09 Oct 2025 11:10:54 ET │ 18 pages Kingboard Laminates Holdings (1888.HK) Open 30D +ve CW on Recent Copper Strength and A-share Peers' 3Q Results CITI'S TAKE A c t i o n | After KBL's last ASP inflation of Rmb10/sheet (~7-8% on ASP) for copperclad laminate (CCL) in mid-Aug, the copper cost continued to surge by ~12% since then to US$10.7k per tonne. In addition to recent increase of KBL's UTR to ~88% in Sep with 10m sheets shipment versus avg 79% in 1H25, we believe KBL will very likely inflate ASP again th ...