Analysis of the Impact of Shengyi Technology's RMB 4.5 Billion Capacity Expansion Project on Copper Clad Laminate Market Share

Based on the collected data and results of analysis tools, I now provide you with a comprehensive and professional analysis report.

On January 4, 2026, Shengyi Technology (600183.SH) signed a Project Investment Intent Agreement with the Management Committee of Dongguan Songshan Lake High-Tech Zone, planning to invest approximately RMB 4.5 billion to build a high-performance copper clad laminate project[1]. Positioned as a key material support for cutting-edge fields such as AI, cloud computing, 6G communications, and intelligent automotive electronics, this project is the company’s key strategic layout for the future.

According to Prismark statistics, Shengyi Technology has ranked second in global rigid CCL sales for 11 consecutive years from 2013 to 2023, with a global market share of 13.7% in 2024, only 0.3 percentage points behind Kingboard Chemical, the first-place enterprise[2][3].

In the first three quarters of 2025, Shengyi Technology achieved operating revenue of RMB 20.614 billion and net profit attributable to shareholders of RMB 2.443 billion, representing a year-on-year increase of 78.04%, while the year-on-year growth rate of non-recurring net profit reached 81.25%[1]. The company has outstanding profitability, with an ROE of 18.36% and a net profit margin of 10.70%, providing solid financial support for capacity expansion[0].

Based on the assumptions that the global rigid CCL market size is approximately 800-850 million ㎡ and the annual compound growth rate is 8% (driven by AI), we calculate the impact of the RMB 4.5 billion capacity expansion project on market share:

• Market Share Increase
  : Under the base scenario, Shengyi Technology’s market share will rise from 13.7% to 16.8%, an increase of 3.1 percentage points
• Surpass Kingboard Chemical
  : If Kingboard Chemical does not expand capacity in the same period, Shengyi Technology is expected to overtake it to become the world’s No.1 in 2027
• High-End Breakthrough
  : The new project focuses 100% on high-performance CCL, and the proportion of high-end products is expected to increase from 29% to 35-40%

Currently, the global CCL industry is experiencing a price increase wave. The surge in high-end demand such as AI servers, coupled with rising raw material costs, has led to an obvious trend of industry concentration, and the technological advantages of leading enterprises have become more prominent[1]. AI servers put forward new requirements for CCL, such as low dielectric loss, low expansion, high thermal conductivity, and high reliability, and the demand growth rate of CCL of grade M8 and above has increased significantly[2].

Shengyi Technology emphasizes that this project investment is in line with the orientation of national industrial policies and meets the requirements of policies such as the Outline of the 15th Five-Year Plan for National Economic and Social Development and the Action Plan for Stabilizing Growth of the Electronic Information Manufacturing Industry (2025-2026)[1]. As a key basic material for the new-generation information technology industry, CCL is receiving key national support, with broad space for domestic substitution.

Shengyi Electronics, a subsidiary of the company, has successfully entered the high-end PCB manufacturing field. The AI supporting motherboard and accelerator card projects have entered mass production, and batch orders for 800G switches have been obtained[2]. The RMB 4.5 billion capacity expansion project will further strengthen the “CCL+PCB” industrial chain synergy and enhance overall competitiveness.

1. Project Approval Risk
   : The specific plan still requires final approval from the board of directors or shareholders, and there is a possibility of changes
2. Policy Risk
   : There is uncertainty about whether the project construction land can be successfully transacted and whether relevant pre-approvals can be completed smoothly
3. Funding Pressure
   : The RMB 4.5 billion investment scale may put pressure on the company’s cash flow
4. Industry Risk
   : AI demand falls short of expectations, raw material price fluctuations, and intensified market competition

The RMB 4.5 billion capacity expansion project is Shengyi Technology’s key strategic layout to consolidate its position as the world’s second and strive for the world’s first place. Focusing on high-end fields such as AI servers and 6G communications, the project will drive the company to:

• Market Share Increase
  : Rise from 13.7% to around 16.8% (2027 base scenario)
• Product Structure Optimization
  : The proportion of high-end products increases from 29% to 35-40%
• Profitability Enhancement
  : High-end products usually have a 10-15% premium
• Global Competitiveness Improvement
  : Expected to overtake Kingboard Chemical to become the world’s No.1

The company has a healthy financial status (net profit in the first three quarters of 2025 increased by 78% year-on-year) and sufficient cash flow, providing a guarantee for project implementation. It is recommended to continue to pay attention to the progress of project approval and changes in AI demand.

[1] Securities Times e-Company - “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] Eastmoney - “Forward-Looking Layout Leads Innovation, Shengyi Technology Continues to Lead the CCL Track” (https://finance.eastmoney.com/a/202512273603344158.html)

[3] Guohai Securities Research Report - “Global CCL Leader, Upward Cycle & AI Demand Drives Growth — Shengyi Technology (600183)” (https://aigc.idigital.com.cn/djyanbao/)

[0] Gilin AI Financial Database - Shengyi Technology real-time quotes, company profile, financial analysis, technical analysis