The price increase of copper clad laminates has been digested by the downstream, Nanya’s new material performance has exploded, and the price cycle is still halfway up the mountain
Citi's report shows that the price increase of Nanya New Material's copper-clad laminates (CCL) has been widely accepted by consumer electronics and automotive customers, and management believes that there is still room for upward growth in the price cycle.
Citi's report shows that the price increase of Nanya New Material's copper-clad laminates (CCL) has been widely accepted by consumer electronics and automotive customers, and management believes that there is still room for upward growth in the price cycle. The company has optimized its order structure by raising the gross profit margin threshold for standard products and shifting to high-speed products. The key data is that in the first half of the year, net profit increased significantly by 382%-473% year-on-year, with full production capacity and nearly zero inventory. Due to the shortage of raw materials among peers, some server orders were transferred to South Asia, increasing its high-speed material shipment share to about 20%. The market may regard this round of price increases as a short-term phenomenon, but Citigroup and management believe that the tight supply of low-end veils will continue until the end of 2027, and the price upward cycle is far from over. One-sentence conclusion: Nanya New Materials is experiencing a super cycle driven by tight supply and upgrading of demand structure, and its performance is explosive and sustainable beyond expectations. Positive/negative: Positive for Nanya New Materials (688519, not covered). The current stock price may have reflected part of the performance growth, but the market may still have expectations for the duration of the price cycle and the improvement in profit margins brought about by the upgrade of high-end product structure. Catalysts: 1) Subsequent quarterly price adjustment announcements will verify the upward price trend; 2) The progress of verification of platforms such as NVIDIA will open up new growth space; 3) When the supply of low-end veils eases, it will determine the length of the price upward cycle.