Strategic Analysis of Shengyi Technology's Response to the Centralized Capacity Expansion Trend of Downstream Printed Circuit Board (PCB) Manufacturers

Currently, the global PCB industry is experiencing a significant capacity expansion cycle, driven primarily by the following factors:

: According to market forecasts, NVIDIA’s GB300 AI server cabinet shipments are expected to reach 55,000 units in 2026, representing a year-on-year growth of 129%[1]. The increasing complexity of AI hardware has directly boosted demand for high-density interconnect (HDI) boards, high-speed copper clad laminates (CCLs), and high-frequency high-speed materials.

: Overseas CCL manufacturers are gradually exiting mid-to-low-end market segments such as FR4, M2, and M4, while mainland Chinese manufacturers are accelerating their shift to higher-end products such as M6, M7, and M8[2]. This structural change has led to tight supply of mid-to-low-end products and surging demand for high-end products.

: As of 2025, 20 new high-speed CCL production lines have been added, with annual capacity jumping to 60 million square meters, and the proportion of high-end products increasing to 35%[2].

Indicator	2024	2025(E)	2026(E)
CCL Demand Growth Rate	8%	15%	18%
CCL Capacity Growth Rate	6%	12%	14%
Supply-Demand Gap	Tight	Continuously Widening	High-End Shortage

The continuous rise in upstream copper prices (exceeding USD 11,000 per ton) and persistently high prices of glass cloth and resin have pushed the CCL industry into a price hike cycle. Kingboard Laminates has issued two price increase notices in 2025, indicating the sustainability of CCL price increases[2].

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(Latest Announcement in January 2026)[3]:

• Project Positioning
  : High-performance CCL project, applied in cutting-edge fields such as AI, cloud computing, 6G communications, and intelligent automotive electronics
• Investment Scale
  : Approximately RMB 4.5 billion
• Construction Location
  : Dongguan Songshan Lake High-Tech Industrial Development Zone
• Strategic Significance
  : Rapidly respond to the strong growth demand for high-performance CCLs in the global market, further enhance the company’s core competitiveness and product market share

:

• Dongguan Headquarters: Songshan Lake Plant has become the largest CCL production base in South China
• Holding joint ventures established in Xianyang, Shaanxi, Suzhou Singapore Industrial Park, Lianyungang, and other locations
• Globalized layout ensures delivery capability[1]

Shengyi Technology has profound technical reserves in the field of high-frequency high-speed CCLs:

Technical Field	Competitive Advantages	Application Scenarios
High-Speed CCLs	Technology benchmarked against international leader Panasonic	112G optical modules, AI server PCBs
High-Frequency Materials	Low dielectric constant, low dielectric loss	5G communications, radar, satellite communications
High Reliability	Automotive-grade and server-grade certifications	Intelligent automobiles, data centers

The company has successfully entered the supply chains of leading AI players such as NVIDIA and Huawei[1]. With profound technical reserves in high-frequency high-speed sheet materials, the revenue share from automotive and server segments continues to increase.

:

• Communication Equipment
  : Huawei, ZTE, Nokia
• Consumer Electronics
  : Samsung, Apple, Xiaomi
• Automotive Electronics
  : Tier 1 suppliers such as Bosch
• Servers
  : Huawei, NVIDIA supply chain, Inspur, Lenovo[4]

Through in-depth cooperation with leading customers, Shengyi Technology can obtain demand information in advance, optimize capacity allocation, and improve order visibility.

• Raw Material Cost Control
  : Establish strategic cooperation with upstream copper foil and electronic cloth suppliers to reduce the risk of raw material price fluctuations
• Production Efficiency Improvement
  : Dongguan Plant features high automation, and unit production costs have been continuously optimized
• Scale Effect Release
  : In the first three quarters of 2025, the company achieved operating revenue of RMB 20.614 billion and net profit attributable to parent company of RMB 2.443 billion, representing a year-on-year growth of 78.04%[3]

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Indicator	Value	Year-on-Year Growth
First Three Quarters Operating Revenue	RMB 20.614 billion	-
First Three Quarters Net Profit Attributable to Parent Company	RMB 2.443 billion	78.04%
Non-GAAP Net Profit	-	81.25%
Q3 EPS	USD 0.42	1.57% Exceeding Expectations
Q3 Operating Revenue	USD 7.93 billion	1.80% Exceeding Expectations

Period	Increase
6 Months	+91.43%
1 Year	+173.91%
3 Years	+344.34%

As of the closing price of USD 68.34 on January 15, 2026, the current stock price is above the 20-day moving average (RMB 69.02) and 50-day moving average (RMB 62.79), with a range-bound technical pattern[0].

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Competitive Advantage	Specific Performance
Market Position	Has maintained the second position globally in rigid CCL sales revenue since 2013
Technical Barriers	National-level enterprise technology center, the only CCL enterprise with a national-level R&D institution
Customer Resources	Obtained certifications from international renowned enterprises such as Siemens, Samsung, Huawei, and Nokia
Capacity Scale	Multi-base global layout, total capacity leading in the industry
Policy Support	Aligns with national industrial policy orientation, supported by the “Action Plan for Stabilizing Growth of Electronic Information Manufacturing Industry (2025-2026)”

Risk Type	Specific Content
Project Approval Risk	The specific plan of the RMB 4.5 billion project still awaits final approval from the board of directors or shareholders’ meeting
Cash Flow Pressure	The RMB 4.5 billion investment scale may cause periodic pressure on the company’s cash flow
Industry Competition	Competitors such as Kingboard Laminates are also actively expanding capacity
Raw Material Prices	Copper price fluctuations have a significant impact on the cost side
Demand Falling Short of Expectations	There is uncertainty in the growth of AI server demand

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• Release of Price Hike Dividends
  : The sustainability of CCL price hikes is expected to continue driving performance improvement in Q4 2025 and 2026
• Gradual Capacity Release
  : The RMB 4.5 billion investment project will be put into production in phases, contributing incremental revenue
• Improved Order Visibility
  : Strong AI server orders are expected to maintain full-capacity production and sales

• Domestic Substitution of High-End Materials
  : Broad room for import substitution in high-speed CCLs, low-dielectric materials, and other fields
• Expansion of Application Scenarios
  : New applications such as 6G communications, intelligent automobiles, and low-orbit satellites will bring incremental demand
• Increasing Industry Concentration
  : Leading enterprises are expected to continue expanding market share with technological and scale advantages

Current PE (TTM) is 58.88x, PB (TTM) is 10.65x[0]. Considering the company’s high performance growth and sustained industry boom, the valuation premium is reasonable.

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In response to the centralized capacity expansion trend of downstream PCB manufacturers, Shengyi Technology has adopted an integrated four-pronged strategy of

. The RMB 4.5 billion high-performance CCL investment project is a key strategic layout for the company’s future, which will further enhance its core competitiveness and product market share.

Against the backdrop of booming AI server demand, continuous CCL price hikes, and increasing industry concentration, as a global leader in the rigid CCL industry, Shengyi Technology is expected to fully benefit from this industry boom cycle, achieving a double growth in performance and valuation.

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[1] NVIDIA GB300 Shipment Boom Ignites AI Server Supply Chain

[2] Kingboard Laminates: The CCL Target with the Highest Current Odds

[3] Shengyi Technology Signs RMB 4.5 Billion Investment Intent Agreement

[4] Forward-Looking Layout, Leading Innovation: Shengyi Technology Continues to Lead the CCL Track

[0] Jinling AI Financial Database (Real-time Market, Financial Data, Technical Analysis)