In-Depth Analysis of the Drivers of Shengyi Technology's 2025 Performance Growth

Based on the collected data and analysis, I will provide you with a detailed analysis of the business growth drivers behind Shengyi Technology’s 78.04% year-on-year net profit growth in 2025.

---

Shengyi Technology, as a global leader in the rigid copper-clad laminate industry, achieved high-speed performance growth in 2025. According to the company’s third quarterly report, it recorded operating revenue of

and net profit attributable to shareholders of in the first three quarters of 2025, representing a year-on-year increase of , while the year-on-year growth rate of net profit excluding non-recurring gains and losses reached as high as [1][4]. The company’s stock price rose from approximately RMB 24 at the beginning of 2025 to a year-end high of RMB 75.8, with a full-year increase of [0].


The chart above shows the company’s quarterly revenue, net profit trends, and growth driver structure.

---

The copper-clad laminate business is the core pillar of Shengyi Technology, contributing the majority of the company’s revenue and profits. The growth drivers of this business come from multiple aspects:

• The company’s copper-clad laminate production capacity has grown from 600,000 square meters per year at the time of establishment to
  140 million square meters per year
  in 2024[1]
• The overall industry boom recovered in 2025, with the company receiving full orders and strong market demand
• Captured periodic bright spots in consumer electronics, automotive, and mining machinery sectors to drive performance growth

• According to data from the company’s official website, high-end copper-clad laminate materials including RF and microwave materials, high-speed products, and IC packaging products account for approximately
  29%
  of total product models[2]
• Shipments of high-end products such as M8-grade copper-clad laminates and PTFE high-frequency copper-clad laminates increased, with the gross profit margin of high-end products reaching
  over 30%
  [1]
• Demand for high-frequency and high-speed products grew rapidly, driving improvement in overall gross profit margin

• Prices of major raw materials saw a significant increase in the second quarter[3]
• The marketing team accurately judged the supply and demand situation and successfully promoted product pricing strategy adjustments during a critical time window
• Copper-clad laminates entered a price increase cycle, and the company fully benefited from cost pass-through

Shengyi Technology holds a

in Shengyi Electronics, whose PCB business has become an important profit growth driver for the company:

• Substantial Performance Growth
  : Shengyi Electronics recorded significant year-on-year growth in operating revenue and net profit in the first half of 2025, with the midpoint of its performance forecast reaching approximately
  RMB 208 million
  [1]
• Access to Supply Chains of Leading Customers
  : Shengyi Electronics has successfully developed multiple server customers including Amazon, and its AI supporting motherboard and accelerator card projects have all entered the
  mass production stage
  [2]
• Global Industry Position
  : According to Prismark’s 2024 report, Shengyi Electronics ranked
  45th globally
  in terms of revenue scale in 2023[2]
• Capacity Expansion
  : Capacity expansion projects such as Jiangxi Shengyi Phase II, Dongguan Plant 5, and the Thailand base have been put into operation one after another, supporting business growth[1]

The construction of AI computing power has driven a surge in demand for high-frequency and high-speed copper-clad laminate materials, becoming a core driver of the company’s performance growth:

• AI computing power products have high requirements for signal transmission rate and bandwidth, and copper-clad laminate materials need to have
  lower loss
  [1]
• Hardware equipment related to AI servers upgrades and iterates rapidly, with product forms significantly different from traditional wired products
• The growth rate of 18+ high-multilayer boards reached
  41.7%
  , and HDI boards are expected to grow
  12.9% year-on-year
  [3]

• Through cooperation with Japan’s Zhongxing Kasei, the company introduced a complete set of PTFE high-frequency copper-clad laminate production technologies, and took the lead in
  industrializing high-frequency copper-clad laminates in China
  [1]
• Compared with international leaders such as Rogers, its core parameters have
  fully caught up
  , ranking it among the world’s first-tier manufacturers
• It has actively cooperated with leading domestic and international AI computing power terminal customers to advance partnerships, and some of its products are already in
  mass supply
  [1]

• Servers and Data Centers
  : Become the core driver of market growth
• Laptops and Game Consoles
  : HDI demand shows a good growth trend
• Automotive Electronics
  : The intelligent driving segment performed particularly well
• Consumer Electronics
  : Benefits from the advancement of AI-enabled terminals[3]

---

The company continues to increase its capacity layout to support future growth:

Project	Capacity Plan	Product Positioning
Jiangxi Shengyi Phase II	Annual production of 30 million sqm copper-clad laminates	High-end electronic materials
Jiangsu Shengyi Phase II Flexible Materials	Flexible copper-clad laminates	Smart terminals, wearable devices
Thailand Production Base	12 million sqm high-performance copper-clad laminates + 23.4 million meters of bonding sheets	Automotive electronics, AI servers, IC substrates
Dongguan New Project	RMB 4.5 billion investment intent	High-performance copper-clad laminates

• High R&D Investment
  : The R&D expense ratio reached
  5.7%
  in 2024, which is higher than that of comparable companies, and its annual R&D expenditure has long been higher than the total R&D expenditure of domestic comparable companies[1]
• Technological Platform Advantages
  : Relying on a strong management system and technological platform, it can rapidly iterate new architectures and new materials
• Product Certification Layout
  : In recent years, its certification layout in AI and related products and accumulation at clients have gradually converted demand into substantive orders[3]

Indicator	2024	2025E	2026E	2027E
Gross Profit Margin	22.0%	24.0%	25.0%	25.0%
EBIT Margin	9.8%	14.1%	15.1%	15.4%
ROE	11.7%	18.8%	23.4%	26.0%

With price increases for mid-to-low-end products and an increase in the proportion of high-end products, the company’s gross profit margin is expected to continue to improve.

---


As of January 15, 2026, the company’s total market capitalization reached

, with a current stock price of RMB 68.34, corresponding to a P/E ratio of [0]. According to predictions from Guosen Securities, the company’s net profit attributable to shareholders will reach in 2025-2027, representing year-on-year growth of 78%, 41%, and 28% respectively[1].

---

The core growth drivers behind Shengyi Technology’s 78.04% year-on-year net profit growth in 2025 can be summarized into the following five factors:

1. Simultaneous Volume and Price Growth of Copper-Clad Laminates
   : Full orders coupled with product price increases expanded revenue scale
2. Product Structure Optimization
   : The proportion of high-end, high-frequency and high-speed products increased to 29%, significantly improving gross profit margin
3. Volume Expansion of Subsidiary Shengyi Electronics
   : The PCB business entered the supply chains of leading AI customers, driving substantial performance growth
4. Driven by AI Computing Power Demand
   : Surge in demand for high-frequency and high-speed copper-clad laminates, and the company’s technological breakthroughs achieved domestic substitution
5. Recovery in Prosperity of All Downstream Applications
   : Strong demand in multiple sectors such as servers, automotive, and consumer electronics

Looking ahead, with the continuous advancement of AI computing power construction, the commissioning of the company’s overseas bases such as the Thailand base, and the volume expansion of high-frequency and high-speed products, Shengyi Technology is expected to continue to maintain a high-growth momentum.

---

[0] Jinling API Market Data (Real-time Quotes and Company Profile for 600183.SS)

[1] Guosen Securities: Global Leader in Copper-Clad Laminates, Upward Cycle & Growth Driven by AI Demand Research Report (July 2025) (https://pdf.dfcfw.com/pdf/H3_AP202507211713123561_1.pdf)

[2] Guohai Securities: Global Leader in Copper-Clad Laminates, Upward Cycle & Growth Driven by AI Demand In-Depth Company Research (March 2025) (https://aigc.idigital.com.cn/djyanbao/全球覆铜板龙头，周期向上&AI需求驱动成长——生益科技（600183）公司深度研究-2025-03-08.pdf)

[3] Huaan Securities: Shengyi Technology: Continuous Performance Growth in H1 2025, Value of Basic Base Materials Highlighted in the Computing Power Era Company Comment (August 2025) (https://pdf.dfcfw.com/pdf/H3_AP202508201731254053_1.pdf)

[4] Securities Times: Shengyi Technology Signs RMB 4.5 Billion Investment Intent Agreement to Increase Layout of High-Performance Copper-Clad Laminates (January 4, 2026) (https://www.stcn.com/article/detail/3569239.html)