Huaxi Securities: Focus on the localization of electronic copper foil production and the opportunity for lithium battery copper foil to enter a price increase cycle.

Huaxi Securities research report indicated that as AI technology requirements are upgraded, high-end electronic copper foil is entering a high-volume period. With the continuous advancement of product verification and production capacity layout, domestic manufacturers are seizing the opportunity of domestication and are expected to enter a phase of increasing volume and profit starting this year. In addition, copper foil is a heavy asset with a large cash flow occupation, which limits the expansion of production capacity. With the domestic lithium battery industry chain set to enter the traditional peak season in the second half of the year, demand increasing along with tight supply of production capacity, the utilization of electronic copper foil production capacity will further exacerbate the capacity constraints, driving lithium battery copper foil prices to continue rising. With the resonance of high profitability of electronic copper foil, rising processing fees, and an increase in the proportion of ultra-thin lithium battery copper foil products, the profit capabilities of copper foil manufacturers are expected to strengthen.