How does Shengyi Technology maintain its leading position in the core pillar of the PCB and copper clad laminate industry?
I. Business Segments: Supporting Half of the PCB and Copper Clad Laminate Electronics Industry
While Shengyi Technology's business logic isn't overly complex, it holds an irreplaceable position in the electronics industry chain. The company's main products, copper clad laminates (CCLs) and PCBs, are crucial core materials for electronic devices and AI servers.
CCLs are made primarily of electronic cloth, resin, and copper foil. They are the most critical raw material for PCBs, accounting for approximately 30%-40% of PCB production costs. This means that without CCLs, electronic devices such as mobile phones, automotive electronic controls, and data center AI servers would not function correctly.
In 2025, Shengyi Technology's CCL business revenue reached 17.774 billion yuan, accounting for approximately 63% of the company's total revenue, representing a year-on-year increase of 20%. Among these, rigid CCLs hold a 14% global market share, ranking second globally, second only to Hong Kong's Kingboard Holdings. This means that for every seven electronic terminal devices sold globally, one uses a CCL supplied by Shengyi Technology.
Furthermore, Shengyi Electronics, a subsidiary of Shengyi Technology, has rapidly expanded downstream, primarily manufacturing PCB products. In 2025, Shengyi Electronics' revenue reached 9.144 billion yuan, a year-on-year increase of 103.93%, more than doubling, making it the company's fastest-growing segment.
II. Financial Momentum: A Comprehensive Performance Explosion, Outstanding Financial Data
Shengyi Technology's financial data for 2025:
- Revenue: 28.431 billion yuan, a year-on-year increase of 39.45%;
- Net profit: 3.334 billion yuan, a year-on-year increase of 91.75%;
- Gross profit margin jumped from 22.04% to 26%, and net profit margin increased from less than 10% to 13.69%;
- The annual dividend payout ratio reached a high of 87.43%, indicating excellent financial health.
In the first quarter of 2026, the growth momentum was even stronger:
- First-quarter revenue reached RMB 8.141 billion, a year-on-year increase of 45.09%;
- Net profit reached RMB 1.158 billion, a year-on-year increase of 105.47%;
- Gross profit margin further climbed to 28.10%, and net profit margin exceeded 16%.
III. Growth Trends: Driven by Three Engines – AI Computing Power, Capacity Expansion, and Subsidiaries
1. AI Servers: Explosive Demand for High-End Products
The demand for high-end copper-clad laminates (CCLs) for AI servers is 3-5 times that of traditional servers. Currently, high-performance CCLs are in short supply, with delivery times extended to more than two weeks. This tight supply situation is expected to continue until 2027.
As a core supplier to NVIDIA, Shengyi Technology focuses on the AI computing power industry chain and will fully benefit from this wave.
2. Capacity Expansion: Seizing the High-End Market
The construction cycle for high-end CCL production lines is as long as 18-24 months, indicating that the tight delivery cycle situation in the industry will remain severe in the next 1-2 years. Shengyi Technology is accelerating its capacity expansion:
- Phase II projects in Jiangxi, Changshu, and Thailand are gradually commencing production;
- A planned investment of 5.2 billion yuan is being made in Dongguan Songshan Lake to build a high-performance copper-clad laminate (CCL) project, with a planned annual production capacity of 48 million square meters. Once production begins, annual sales are expected to exceed 9.3 billion yuan.
3. Shengyi Electronics: The Second Growth Driver
Shengyi Electronics' revenue in 2025 is expected to reach nearly 10 billion yuan, representing a year-on-year increase of over 100%. The company primarily focuses on PCB products for AI servers and high-speed switches, and has already entered the mass production stage. In 2026, it is expected to secure more major clients within the industry and strive to develop its overseas customer base, showing significant growth potential.
IV. Company Core: Deeply Rooted in Copper Clad Laminates, Clear Industry Logic
Shengyi Technology has been deeply involved in the copper-clad laminate (CCL) industry for 40 years, establishing strong technological and customer barriers. It is the world's second-largest and China's largest industry leader. In the wave of the AI computing revolution, its value as a manufacturer of electronic substrates is becoming increasingly prominent.
In the long run, the explosive growth in demand for AI computing power, the expansion of its own production capacity and business, and the growth of its subsidiary Shengyi Electronics are the three major advantages that will drive its performance to get better and better.
