Goldman Sachs
2026-06-12
Shengyi Tech (600183.SS): AI CCL capacity expansion with mix upgrade to high-end products; TP raised to Rmb217.6; Buy
Report Summary
Goldman Sachs raises its target price on Shengyi Technology (600183.SS) to Rmb217.6 from Rmb146.3, maintaining a Buy rating. The new TP is based on 45.0x 2027E P/E (previously 38.7x). The company continues ramping up new CCL capacity in 2Q26 and announced a new capex plan of Rmb5.2bn for CCL production lines targeting approximately 38.4mn sheets of annual capacity. A key driver is the mix upgrade towards higher-end CCL products (M9 and above), with global AI server CCL value expected to grow 142%/222% YoY in 2026/27E.
Key Takeaways
- AI server demand is driving a massive upgrade cycle in CCL materials, with global AI server CCL value projected to grow 142% and 222% YoY in 2026 and 2027 respectively.
- Shengyi's Rmb5.2bn capex plan for ~38.4mn sheets of annual CCL capacity demonstrates strong conviction in sustained AI-driven demand for high-end substrate materials.
- The mix shift toward M9 and above products is significantly improving profitability, with gross margins expanding as the company captures higher value per sheet.
- Earnings revisions of 8-29% upward for 2026-28E reflect a powerful combination of volume growth, margin expansion, and operating leverage from premium product mix.
- The elevated 45x 2027E P/E multiple (up from 38.7x) signals Goldman's view that the market should price Shengyi as a high-growth AI supply chain beneficiary rather than a traditional materials company.
Topics Covered
AI Server CCL Materials
Capacity Expansion & Capex
Product Mix Upgrade
Copper-Clad Laminate Industry
Earnings Revision Upward
High-End Substrate Demand
Valuation Multiple Re-rating
Companies Mentioned
Shengyi Technology (600183.SS)
Shennan Circuits
Innolight
Eoptolink
Furukawa
Chenbro
King Slide
AVC
Sumitomo
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