(the thematic data of this edition is provided by Zhou Jingyu / Cartography provided by the Central Database of the Securities Times)

May 20thCrashlands2Kingboard Group issued another price increase letter: affected by the sharp rise in copper prices, and customers have more stocks, the company increases the price of materials by 5 yuan / sheet to 10 yuan / Zhang, an increase of 5% 10%. The previous price increase of 10 yuan per piece for all products in March this year is the second price increase so far this year.

Information shows that Kingboard Holdings Limited is an investment holding company mainly engaged in the manufacture and sale of laminates with a market capitalization of more than $20 billion. The company first issued a price increase letter this year in March, which is also affected by the sharp rise in copper prices, which is expected to rise by 5% and 10%.

It is reported that copper clad laminate is the main raw material of printed circuit board (PCB). The performance, quality, processability, manufacturing level, manufacturing cost and reliability of PCB depend largely on the copper clad laminate used. The main materials of copper clad laminate include copper foil, resin, fiberglass cloth, etc., and prices have risen to varying degrees since the beginning of this year.

Guosheng Securities believes that copper clad laminate is expected to further transmit the price of raw materials upward and downward, and the profit level is expected to be repaired gradually. On the one hand, because of the high market concentration in the copper clad laminate industry, copper clad laminate manufacturers have strong bargaining power downstream, and it is easier to pass on higher costs, so in the process of upstream copper prices hitting new highs, it is expected to successfully transmit the price rise. On the other hand, the demand boom of downstream PBC manufacturers has also rebounded. At present, the production rate of copper clad laminate manufacturers has gradually increased, reflecting the recovery of the economy downstream, but also providing support for price increases.

Affected by the recession of the semiconductor industry, the prosperity of the copper clad laminate industry has been in the doldrums in recent years. The overall PCB industry fell by 15% in 2023, the price of the copper clad laminate industry is low, and some manufacturers have suffered serious losses.

Judging from the performance of relevant stocks in the A-share market, the return on non-net assets deducted from copper clad laminate concept stocks in 2023 is only 0.Crashlands2.54%, a 10-year low. Zhongtai Securities said that the boom of PCB is expected to be repaired in 2024, and copper clad laminates are expected to usher in a reversal of difficulties.

In the A-share market, the number of CCL concept stocks is not large. Among them, Shengyi Technology has been ploughing the copper clad laminate industry for nearly 40 years and has become the second largest supplier of copper clad laminates in the world, with a stable global market share of about 12%. The company's revenue in the first quarter exceeded 4.4 billion yuan, an increase of nearly 18 percent over the same period last year, and its net profit reached 392 million yuan, an increase of more than 58 percent over the same period last year.

Shengyi Technology said in its quarterly report that the substantial increase in performance was mainly due to the increase in the production and sales of the company's copper clad laminates, the optimization of product structure, the increase in operating income and the corresponding increase in the company's net profit. Shengyi Electronics Co., Ltd., a subsidiary of Shengyi Electronics Co., Ltd., continues to optimize the product structure of circuit boards and actively improve the regional layout of product business. With the increasing demand for high-layer printed circuit boards in the server market, production, sales and operating income have increased compared with the same period last year, resulting in a corresponding increase in the company's net profit.

Changjiang Securities believes that with the strong demand in subdivisions such as artificial intelligence servers, high-speed copper clad laminates are expected to recover first, and Shengyi technology with deep layout of high-speed copper clad laminates will fully benefit.

On the whole, the performance of copper clad laminate concept stocks was generally good in the first quarter of this year. The net profit of South Asian new materials increased by more than 208% compared with the same period last year, and the net profit of many stocks, such as Huazheng Xincai and Shenghong Technology, increased by more than 50%. According to the consistent performance forecast of the organization, the net profit growth rate of Shengyi Technology is expected to reach 48.68% this year. Sheng Hong Technology and Huazheng Xincai unanimously forecast that the net profit this year is expected to achieve rapid growth, reaching 72.88% and 197.36% respectively.

According to Securities Times data Bao statistics, compared to the performance, the performance of copper clad laminate concept stocks is generally poor, only Sheng Hong Technology, Shengyi Technology, South Asia New Materials and other stocks rose during the year. The stock with the biggest decline was * ST Chaohua, which fell nearly 70% during the year, while Huazheng Xincai, Jin an Guoji and ultrasonic electronics all fell more than 10%.