Investment Value Analysis Report on Shengyi Technology's RMB 4.5 Billion High-Performance Copper Clad Laminate Expansion Project

Now I will generate a comprehensive analysis report for you.

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On the evening of January 4, 2026, Shengyi Technology (600183.SS) announced that it had signed a “Project Investment Intent Agreement” with the Management Committee of Dongguan Songshan Lake High-Tech Industrial Development Zone, planning to invest approximately in a high-performance copper clad laminate (CCL) project [1][2]. This investment was reached based on the package solution promoted by the Dongguan Municipal Government for the land storage of the company’s Wanjiang old factory area, and does not constitute a connected transaction or major asset restructuring. The relevant proposal has been reviewed and approved by the company’s board of directors [1].

This project is positioned as a high-performance CCL project, a key strategic layout for the company facing the future, aiming to quickly respond to the strong growth demand for high-performance CCL in the global market [1]. As a key basic material for the electronic information industry, high-performance CCL is widely used in cutting-edge fields such as [1][2].

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According to the latest financial data, Shengyi Technology delivered outstanding operating results in the first three quarters of 2025 [1]:

Financial Indicator	Value	YoY Change
Operating Revenue	RMB 20.614 billion	Significant Growth
Net Profit Attributable to Parent Shareholders	RMB 2.443 billion	+78.04%
Non-Recurring Net Profit	-	+81.25%

• 2025 Q3: EPS $0.42 (1.57% above expectations), operating revenue $7.93B (1.80% above expectations)
• 2025 Q2: EPS $0.36, operating revenue $7.07B
• 2025 Q1: EPS $0.24, operating revenue $5.61B
• 2024 Q4: EPS $0.16, operating revenue $5.64B

Indicator	Value	Evaluation
P/E (TTM)	62.38x	Relatively High
P/B (TTM)	11.28x	Relatively High
ROE	18.36%	Excellent
Net Profit Margin	10.70%	Healthy
Current Ratio	1.55	Stable

The current stock price (¥72.40) is significantly higher than the intrinsic value [0]:

• Conservative Scenario: ¥22.75 (-68.6%)
• Base Scenario: ¥27.74 (-61.7%)
• Optimistic Scenario: ¥40.09 (-44.6%)
• Weighted Average Intrinsic Value: ¥30.19

The 2027 analyst consensus EPS is $2.89 (range $1.93-$3.81) [0]

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According to industry research data [3][4][5], the global CCL market is undergoing structural upgrading:

Indicator	Value
Global CCL Market CAGR (2024-2027)	18%
High-End CCL Market CAGR	40%
2026 AI PCB Market Size	Approximately RMB 60 billion (YoY +229.8%)
M9-related Industry Chain Market Space	Exceeds RMB 140 billion

Platform	CCL Grade	Features
Current Mainstream AI Servers	M7/M8	Widely Adopted
2026 Rubin Platform	M9	Soon to Enter Mass Production
2027 Rubin Ultra	M9+/Q Cloth	Further Upgrade

• NVIDIA plans to ship 1 million Rubin GPUs in 2026
• Each chip requires 0.5 square meters of M9 material PCB
• Directly generates approximately
  500,000 square meters of M9 material PCB demand
• Corresponding to approximately
  5,000 tons of M9 substrate demand
  [4]

According to industry dynamics [3]:

• Leading players such as Kingboard have adjusted CCL prices multiple times (August, December, and this month)
• Triple factors:
  rising copper prices
  +
  tight glass cloth supply
  +
  AI demand squeezing production capacity
• China Merchants Securities judges: “Price increases will be the main theme for the CCL industry in 2025-2026” [3]

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According to data from Tripod Technology’s earnings conference [6], the 2024 global high-speed CCL market share:

Ranking	Enterprise	Market Share	Remarks
1	Tripod Technology	40%	Dominant Position
2	Unimicron Technology	19%	-
3	Taiwan Union Technology	16%	-
4	Panasonic	11%	-
5	Nan Ya Plastics	5%	-
6	Shengyi Technology	5.7%	Continuously Increasing
7	Kingboard	4%	-
8	Doosan	4%	-

• Shengyi Technology’s market share increased from 4% in 2023 to
  5.7%
  in 2024 [6]
• Its position in the high-end CCL market continues to improve
• The RMB 4.5 billion expansion project will further strengthen its competitiveness

According to estimates from China Merchants Securities [7]:

• Domestic effective production capacity supply for AI demand PCB: Approximately
  RMB 120 billion
• Expected demand: Approximately
  RMB 150 billion
• High-end PCB production capacity will remain tight in 2026

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Shengyi Technology’s stock price performed strongly in 2025 [0]:

Period	Increase
1 Month	+26.44%
3 Months	+30.31%
6 Months	+139.34%
1 Year	+206.26%
52-Week Range	¥20.80 - ¥75.40

According to technical analysis [0]:

Indicator	Value	Signal
Latest Closing Price	¥72.40	-
20-Day Moving Average	¥66.92	Support Level
60-Day Moving Average	¥61.82	-
RSI (14)	66.14	Strong but Not Overbought
MACD	3.5758	Bullish Signal
KDJ	K:75.1, D:78.3	Short-Term Overbought
Beta	0.84	Relatively Low Volatility
Support Level	¥66.92	-
Resistance Level	¥74.31	-

The stock price is in a phase (range ¥66.92-¥74.31), with no clear trend signal [0]

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• AI server iteration drives the upgrade of CCL materials from M7/M8 to M9
• The global CCL market has a CAGR of 18%, and the high-end market reaches 40%
• The industry has entered a price increase cycle, and leading enterprises will fully benefit

• Global high-speed CCL market share continues to increase (4%→5.7%)
• The RMB 4.5 billion expansion project strengthens the layout of high-end production capacity
• Performance continues to exceed expectations, with 2025 net profit increasing by 78% year-on-year

• Aligns with the national “15th Five-Year Plan” and the stable growth plan for the electronic information manufacturing industry
• CCL, as a key basic material for the new generation of information technology, receives key support

• The specific project plan still requires final approval by the board of directors or shareholders’ meeting
• Uncertainties exist in project construction land and pre-approval [1]

• The RMB 4.5 billion investment scale may put pressure on the company’s cash flow [1]
• Need to pay attention to financing arrangements and funding sources

• The current P/E reaches 62.38x, and DCF shows the stock price is significantly overvalued
• Valuation relies on the market’s optimistic expectations for AI demand

• Sino-US trade frictions may intensify
• Risk of AI application implementation falling short of expectations
• Risk of upstream raw material price fluctuations

• PCB material upgrades are rapid, and there is uncertainty in the technical route

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Industry prosperity is expected to continue, but the pace needs to be monitored

1. Demand Side:
   NVIDIA’s Rubin platform will enter mass production in 2026, with high certainty of M9 material demand
2. Supply Side:
   High-end CCL production capacity remains tight, and leading enterprises have full order books
3. Price Side:
   The price increase trend is clear, and profitability is expected to continue to improve
4. Policy Side:
   Supported by national strategies, there is broad space for domestic substitution

1. Need to track the actual shipment volume of NVIDIA’s Rubin platform
2. Pay attention to the rhythm of downstream inventory adjustment
3. Beware of pullback risks caused by overly high market expectations

Dimension	Evaluation
Long-Term Value	The company is a core material supplier in the AI computing power industry chain, and the RMB 4.5 billion expansion project strengthens its leading position
Short-Term Risk	The current valuation is relatively high; wait for a more reasonable entry point
Investment Rating	Cautious Add (wait for valuation regression or performance verification)

• 2025 annual report results (expected in February-March 2026)
• Progress of the RMB 4.5 billion expansion project
• Mass production progress of NVIDIA’s Rubin platform
• CCL price trends and industry order status

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[1] Securities Times - “Shengyi Technology Signs RMB 4.5 Billion Investment Intent Agreement to Increase Layout of High-Performance CCL” (https://www.stcn.com/article/detail/3569239.html)
[2] Sina Finance - “Breaking! RMB 170 Billion PCB Leader Invests in High-Performance AI CCL Project” (https://finance.sina.com.cn/jjxw/2026-01-04/doc-inhfcxwm2801069.shtml)
[3] Sina Finance - “Price Increase Wave Reaches PCB Upstream: Leaders Raise CCL Prices by 10% AI Drives the Industry into an Upward Cycle” (https://finance.sina.com.cn/jjxw/2025-12-29/doc-inhemqaw5021714.shtml)
[4] PCBworld - “M9 Material Iteration, AI Demand Opens Up RMB 100 Billion Market Space for PCB” (https://www.eet-china.com/mp/a463463.html)
[5] Huxiu - “In 2026, AI Investment Depends on Exceeding Expectations” (https://pro.huxiu.com/article/4823514.html)
[6] CITIC Construction Investment - “2026 Investment Prospects of the PCB Industry Chain” (https://hao.cnyes.com/post/214796)
[7] Huxiu - “In 2026, AI Investment Depends on Exceeding Expectations” (https://pro.huxiu.com/article/4823514.html)
[0] Jinling AI Financial Database (Real-time market data, financial analysis, technical analysis, DCF valuation)