UBS: Shengyi Technology Preliminary 1H 2026 Results — CCL ASP Hikes Realized
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Key Views
Q2 2026 net profit of RMB 1.9–2.1 billion exceeded UBS's forecast of RMB 1.4 billion by 37–51% and beat the Reuters consensus by 32–45%. UBS attributes the upside to a higher AI product mix, ASP increases on traditional copper-clad laminate (CCL), and accelerating growth and margin expansion at Shengyi Electronics' PCB business. Shengyi Electronics is expected to post 1H 2026 revenue of RMB 5.6–5.9 billion, up 49–58% YoY, with net profit of RMB 1.08–1.14 billion, up 104–114%. Its Q2 net margin midpoint of 19.7% rose from 18.6% in Q1, easing investor concerns about PCB margin compression.
Outlook
UBS expects Shengyi's CCL operations to maintain full capacity utilization in 2H 2026 based on current order visibility. AI CCL prices remain broadly stable, enabling AI PCB makers to offset cost pressure through a higher AI product mix. Full Q2 results are scheduled for August 14.
Recommended Securities
Shengyi Technology (600183.SS): The 12-month rating of Buy and target price of RMB 97.00 are under review. The stock closed at RMB 134.45 on July 13, 2026. UBS projects diluted EPS of RMB 2.38 (2026), RMB 3.17 (2027), and RMB 4.10 (2028).
Key exhibits
Exhibit 1
