Hong Kong stock concept tracking | High-end CCL suppliers all announced price increases. Leading copper clad laminate companies benefit from AI expansion (with concept stocks).

The demand for high-speed CCL (low Dk/Df materials) from AI servers has surged, driving the CCL industry into a new round of upgrade cycle. The construction of AI computing clusters promotes high-speed interconnection and high-density integration. Copper-clad laminates (CCL), as the core substrate of PCB, is the foundation for the signal integrity and heat dissipation reliability of AI servers. CCL is made by pressurizing resin, fiberglass cloth, and copper foil, determining the PCB's dielectric loss and interlayer connectivity capability, with core indicators being low dissipation factor (Df) and high glass transition temperature (Tg). The surge in AI computing demand directly boosts downstream PCB demand growth, further driving the demand for copper-clad laminates. Since April, many leading copper-clad laminate companies have issued price hike notices, steadily increasing the profitability visibility of copper-clad laminates. It is noteworthy that, due to the continuous impact of comprehensive price hikes on copper-clad laminates and upstream materials, Taiyao has notified customers that it will increase CCL prices starting from April 25, with price hikes of up to 20% to 40% for some series products. The iteration of AI server GPU/ASIC architecture is driving the rapid migration of CCL materials grades from M7 to M8. Some PCBs with NVIDIA's Rubin architecture have already adopted M9 materials, and Google's TPU and other ASIC solutions are also following suit. The demand for M9 materials is expected to surge in the next three years. China Securities Co., Ltd. research believes that, on one hand, companies like Resonac, Mitsubishi Gas Chemical, and others have announced price increases of over 30% for CCL, with domestic leading companies like KB LAMINATES following suit. This is a typical case of "price hikes and performance realization" On the other hand, the upgrade from M7 to M8, M9 materials grade signifies that the CCL industry is transitioning from a cycle product to a high-speed material technology product, with a qualitative change in product structure and value center. Shanxi issued a research report stating that the accelerating penetration of AI servers is driving the surge in demand for upstream materials such as copper foil and HVLP copper. Jian Tao recently issued a price hike notice, indicating a 10% increase in the prices of all board materials and PP (semi-cured sheets). In addition, high-end CCL suppliers such as Taiwan Chemitronics, Taiyao, and Lianmao have also communicated price hikes with customers. The bank believes that considering the strong sustainability of the AI-driven super cycle, the high-speed growth period will continue for the next 3-5 years, providing sustained strong demand for high-end copper-clad laminates, with the tight supply-demand situation expected to last until 2027 or even longer. Hong Kong stocks related to copper-clad board industry: - KB LAMINATES (01888): On April 28, the leading company in the copper-clad laminate industry, KINGBOARD HLDG's Guangdong KB LAMINATES Sales Co., Ltd. issued a formal price hike notice, stating that due to high copper prices and tight supply of fiberglass cloth, the cost of copper-clad laminate has sharply increased, and therefore, the prices of FR-4 copper-clad laminate and PP semi-cured sheet are adjusted upwards by 10% with immediate effect. - KINGBOARD HLDG (00148): Diversified business. In addition to its core copper-clad board business (achieved through KB LAMINATES), it also engages directly in printed circuit boards, chemical products, property development and investment, among other fields. - Shenzhen Han's CNC Technology (03200): The company is a leading mainland PCB specialized production equipment solution service provider, mainly engaged in the research, production, and sales of PCB specialized production equipment. The company's wide range of production equipment covers multiple sectors of the PCB industry and includes various production processes such as drilling, exposure, pressing, forming, and testing.