Longdian Huaxin (FOIL.US): The copper foil "invisible champion" has landed on the New York Stock Exchange, with three barriers building its leading strength.

In the first half of 2026, the copper foil industry welcomed a strong reversal after a round of capacity clearance. Main products saw both volume and price increases, with the industry's prosperity continuously rising. Leading the copper foil sector, Longdian Huaxin New Energy Technology Group (abbreviated as Longdian Huaxin) (FOIL.US) seized opportunities in the capital market and officially listed on the New York Stock Exchange on August 12, Eastern Time, with the stock code "FOIL." As a key fundamental material for lithium batteries and high-end electronic circuits, electrolytic copper foil is benefiting from the dual boosts of global energy transition and AI computational infrastructure development, with market demand steadily expanding and a clear trend toward high-end specifications. Meanwhile, as domestic manufacturers continue to upgrade their technologies, the long-dominant competitive landscape of the high-end electrolytic copper foil market, primarily led by Japanese and South Korean companies, is gradually being dismantled, creating a structural strategic window for domestic replacement. Longdian Huaxin has deeply engaged in the industry for over twenty years. With continuous investments in research and development and a forward-looking strategic layout, it has grown into a global leader in copper foil, establishing solid competitive barriers in technology, capacity, customer resources, and more. Currently, the company is entering a phase of realization driven by multiple positive factors, making its investment value worthy of in-depth analysis. Leading the industry's technological upgrade wave, Longdian Huaxin has proactively laid out the next generation of battery technologies. As new battery technologies evolve rapidly, the market has raised higher comprehensive performance requirements for core conductive materials, including lightweight, high strength, high toughness, excellent charging and discharging performance, and long life, thus continuously raising technical barriers. Longdian Huaxin consistently stands at the forefront of industry technology, repeatedly breaking overseas technological monopolies, achieving breakthroughs and large-scale production in high-performance products such as 6m high-strength lithium battery copper foil, 5m high modulus copper foil, and the entire series of 4m high-end copper foils. Focusing on the next generation of battery technology routes, the company has laid out several cutting-edge directions: In the field of high-strength and high-toughness copper foil, the company has achieved dual optimization in tensile strength and resistivity, meeting the stringent requirements for next-generation power batteries in terms of high energy density, long cycle life, and high-rate fast charging. In the field of solid-state batteries, the company is targeting the most industrially viable sulfide solid-state battery route, developing specialized foil materials for solid-state batteries with superior corrosion resistance to provide a longer cycle life for batteries. In the ultra-thin field, the company has successfully developed high-performance ultra-thin copper foil below 4m, effectively increasing the energy density of battery cells. The product's performance can support customized formulations and is widely adaptable for diverse applications, including power batteries, energy storage systems, and 3C consumer electronics. As of now, the company has established a multi-layered product matrix that includes ultra-thin lithium battery copper foil, high-performance copper foil, microporous copper foil, specialized copper foil for solid-state batteries, and chrome-free environmentally friendly copper foil, with extensive layouts in cutting-edge fields such as new energy and green energy storage. The profound technical foundation and continuous product iteration capabilities not only help Longdian Huaxin secure a technological high ground in the high-end copper foil sector but also lay a solid foundation for the company to flexibly expand production and rapidly respond to customer needs. Deeply binding with global top clients, scale effects are accelerating release. As a large industry leader integrating research, manufacturing, and sales of new energy materials and electronic materials, Longdian Huaxin has built an efficient industrial matrix of "1+2+7": a single procurement and sales platform coordinating the global supply chain, two major copper foil technology research institutes driving continuous innovation, and seven production bases supporting capacity release. The company's production bases span across locations such as Lingbao, Henan; Nanjing, Jiangsu; Nanning, Guangxi; Dongying, Shandong; and Baoji, Shaanxi, forming a nationwide supply layout; simultaneously, the construction of its factory in Malaysia is accelerating, with overseas capacity layout steadily advancing. In 2025, the company's annual copper foil production capacity is expected to exceed 180,000 tons, maintaining the industry's top position in terms of capacity scale and market share for consecutive years. With leading technology and stable large-scale delivery capabilities, Longdian Huaxin has gained widespread recognition in the industry, establishing a high-quality, high-sticky global customer system, thoroughly binding with major battery manufacturers, copper-clad laminate (CCL) manufacturers, and printed circuit board (PCB) manufacturers, including industry leaders such as LG New Energy, Contemporary Amperex Technology, SK On, Samsung SDI, ATL, and Panasonic Industrial Materials. Relying on exceptional product and service capabilities, the company has repeatedly won authoritative honors from international top clients. Since 2015, it has been a major supplier of copper foil to LG Energy Solution and was awarded the highest honor for global suppliers, the "Level S Supplier Award," in 2024, fully validating its first-class international quality and service capabilities. In the PCB copper foil sector, the company has maintained stable and deep cooperation with Panasonic Industrial Materials for twelve years, while Panasonic collaborates deeply with NVIDIA Corporation in high-performance computing AI applications, making Longdian Huaxins PCB copper foil products substantively embedded in the supply chain of essential materials for global AI computational infrastructure, further broadening the company's long-term growth space. At the same time, investment from international industry capitals such as SK Inc. has created a dual binding advantage of "industrial capital + deep business synergy," further strengthening the company's developmental foundation. Competitive barriers in technology, customers, and capacity continuously solidify the companys fundamentals. With a comprehensive reversal of the industry cycle, Longdian Huaxin has achieved significant performance improvements, with profit levels steadily being released. According to the prospectus, in 2025, the companys revenue is expected to grow 24% year-on-year to 10.942 billion RMB (all amounts in RMB), with gross profit reaching 727 million RMB and adjusted EBITDA rising from 500 million RMB to 869 million RMB. In the first quarter of 2026, quarterly revenue further surged to 4.073 billion RMB, with a year-on-year increase of over 100% (19.1 billion RMB during the same period last year); profitability significantly improved, with net profit reaching 134.5 million RMB, exceeding the total profit level for 2025. With the continued prosperity of the industry, ongoing product structure upgrades, and support from medium- to long-term supply-demand gaps, the growth rate of the copper foil industry is expected to continue to rise in the first half of 2026. Among domestically listed companies in the industry, Guangdong Jiayuan Technology (688388.SH) expects a semi-annual revenue ranging from 7.2 billion to 7.8 billion RMB in 2026, representing a year-on-year growth of 81.68% to 96.82%. Net profit is expected to be between 360 million and 390 million RMB, a dramatic year-on-year increase of 879.48% to 961.11%; Anhui Tongguan Copper Foil Group (301217.SZ) anticipates a net profit of 205 million to 225 million RMB in the first half of the year, a year-on-year growth of 486.49% to 543.70%; Hubei Zhongyi Technology Inc. expects a profit of 150 million to 180 million RMB for the first half, with a year-on-year increase of 879.55% to 1075.46%; Nuode New Materials is expected to report a net profit of 103 million RMB for the half-year, successfully turning losses into profits. Soochow predicts that global demand for dynamic storage batteries will grow by 38% year-on-year in 2026, driving actual demand for lithium battery copper foil to reach 1.63 million tons (a year-on-year increase of 29%), which is expected to further rise to 1.97 million tons in 2027 (a year-on-year increase of 21%); meanwhile, during the same period, new global copper foil production capacity is anticipated to be only 210,000 tons and 230,000 tons, with limited expansion, leading to a continued tightening of supply and demand, and the industry is entering a new upward cycle of prosperity. Furthermore, the accelerated deployment of AI computational infrastructure has opened a second growth curve for copper foil. It is estimated that the global demand for high-end copper foil needed for AI servers will be approximately 24,000 tons in 2026, a staggering year-on-year increase of 260%. This is expected to rise to 50,000 tons in 2027, and exceed 110,000 tons by 2030, becoming an important source of incremental demand not to be neglected in the copper foil market. As a global leader in high-end lithium battery copper foil, Longdian Huaxin's growth trajectory over twenty years mirrors the gradual "curve overtaking" of China's high-end copper foil industry from lagging behind. Against the backdrop of continuous demand prosperity in AI and new energy downstream, bolstered by multiple solid moats in technology, capacity, and customer bases, Longdian Huaxin is likely to continuously leverage its advantages in overseas expansion, further leading Chinese material enterprises to expand their global market share, and welcoming a double boost in performance and valuation. Mr. Wang Guanjun, Chairman and Co-CEO of Longdian Huaxin, stated: "Listing on the New York Stock Exchange is an important milestone in Longdian Huaxin's globalization strategy. In the future, the company will continue to advance its strategic layout, expand production of ultra-thin high tensile lithium battery copper foil core product lines, and provide VLP, RTF, and HVLP copper foil solutions to high-end CCL and PCB customers." This listing on the New York Stock Exchange not only injects new international capital momentum into Longdian Huaxin's global development but also provides the market with an investment window to participate in the long-term growth of this high-end leader, with subsequent growth dividends expected to gradually materialize.