Core Viewpoint - The article emphasizes the investment potential of Shengyi Technology (生益科技), a leading supplier in the PCB upstream market, particularly benefiting from the AI computing sector's growth, which is driving both volume and price increases in the industry [6][14]. Group 1: Company Overview - Shengyi Technology is the largest supplier of copper-clad laminates (CCL) in mainland China and the largest PCB upstream company in the A-share market, with a significant customer base including major PCB companies [7][8]. - The company has a cyclical performance that reflects the PCB industry's demand, with a projected total revenue of 20.388 billion yuan in 2024, representing a year-on-year growth of 22.9% [8][11]. Group 2: Financial Performance - Shengyi Technology's net profit is expected to grow significantly, with projections of 1.739 billion yuan and 1.426 billion yuan for 2024 and the first half of 2025, respectively, indicating year-on-year growth rates of 49.4% and 53.0% [11][14]. - The self-operated PCB business, managed by its subsidiary Shengyi Electronics, has shown remarkable growth, contributing 90% of the profit increase in the recent performance rebound [15][21]. Group 3: Market Dynamics - The AI server market is a key driver for Shengyi Technology, with the company shifting its strategy to "All in AI" to capture more market share [26]. - The demand for high-performance copper-clad laminates is increasing due to the specific requirements of AI servers, which necessitate higher-grade materials compared to general servers [27][30]. Group 4: Competitive Position - Shengyi Technology holds a strong competitive position in the copper-clad laminate market, with a global market share of 13.7% in 2024, ranking second in sales volume [34]. - The company's ability to maintain a gross margin above 20% sets it apart from competitors, which often struggle with lower margins [37][39].