Who Leads Profitability in the Copper Clad Laminate Industry?
Copper Clad Laminate (CCL) — the essential upstream material for printed circuit boards (PCBs) — plays a critical role in providing conductivity, insulation, and structural support. As electric vehicle adoption drives demand for lithium battery copper foil, the ongoing electrification of automobiles is also boosting copper foil consumption for PCBs.
According to industry analysts, driven by rapid developments in AI, HPC, and cloud computing, the global PCB market is projected to reach US$94.66 billion by 2029. The growth of AI servers and high-performance computing (HPC) systems is accelerating demand for low-loss, high-layer-count, and HDI boards, pushing high-end CCL materials to new performance and price levels.
Industry Chain Overview
Upstream Raw Materials
Key raw materials include copper foil, glass fiber cloth, synthetic resins, and wood pulp paper.
· Copper foil serves as the main conductive layer — its purity and thickness determine the CCL’s electrical performance.
· Glass fiber cloth enhances mechanical strength and dimensional stability.
· Resin acts as an adhesive and dielectric layer.
· Wood pulp paper is mainly used in paper-based laminates, offering lower costs but reduced performance.
Midstream Manufacturing
This stage covers material processing, lamination, and curing to produce finished CCLs. Leading manufacturers include Kingboard Laminates, Shengyi Technology, and Jinan Guoji.
Downstream Applications
CCL is directly used in PCB manufacturing, where it undergoes etching, drilling, and lamination to form circuit patterns. End-use sectors include communications, automotive electronics, computing, consumer electronics, industrial control, and aerospace.
Profitability Across the CCL Value Chain
Profitability reflects a company’s earnings capacity and efficiency over time.
This report analyzes 26 listed companies across the CCL supply chain, assessing ROE, gross margin, and net margin as key performance metrics.
Data are historical and for analytical reference only — not investment advice.
Key Companies in the CCL Value Chain (Updated July 2025)
1. Shengyi Technology (600183)
Global leader in rigid CCLs with a 14% market share, competitive with top-tier international brands.
· Highlights:
o High-speed CCLs certified by NVIDIA and Tesla.
o Q1 2025 net profit: RMB 564 million (+43.8% YoY).
o Gross margin: 24.6%; Net margin: 11.3%.
o Vertically integrated “Materials + PCB” model enhances synergies via subsidiary Shengyi Electronics.
2. Nanya New Material (688519)
Key supplier in China’s mid-to-high-end CCL market, specializing in high-frequency and high-speed products.
· Highlights:
o Certified by Huawei; supplying major AI server brands.
o Q1 2025 revenue +45.0% YoY; net profit +109.0% YoY.
o 30μm substrate supports ≥24-layer PCBs.
3. Jinan Guoji (002636)
Leader in mid-to-low-end CCL, strong cost control and cyclical recovery potential.
· Highlights:
o Q1 2025 net profit +212.2% YoY.
o Gross margin recovered to 10.8%.
o Broad product portfolio from FR-4 to aluminum-based CCLs.
4. Huazheng New Material (603186)
Pioneer in domestic ABF film and high-speed CCLs for data centers and AI servers.
· Highlights:
o Q1 2025 net profit +1953.5% YoY.
o Gross margin: 12.6%; strong earnings elasticity in recovery cycle.
5. Jiayuan Technology (688388)
Global leader in lithium battery copper foil, core supplier to CATL.
· Highlights:
o Mass production of 6μm double-shiny copper foil.
o Lithium foil accounts for 81% of revenue; solid-state foil under testing.
o Q1 2025 net profit growth driven by EV adoption.
6. Defu Technology (301511)
Comprehensive copper foil manufacturer serving both lithium batteries and HDI PCBs.
· Highlights:
o 2025 capacity: 175,000 tons.
o Gross margin improvement expected from premium products.
o Close partnerships with CATL and Gotion High-Tech.
7. Hongchang Electronics (603002)
Leading epoxy resin producer, providing core materials for CCLs.
· Highlights:
o Expanding 140,000-ton epoxy capacity at Zhuhai base.
o Q1 2025 net profit +212.2% YoY.
o Vertical integration via subsidiary Wuxi Hongren.
8. Dongcai Technology (601208)
Major player in electronic-grade resins for high-speed CCLs.
· Highlights:
o Products certified by NVIDIA and Huawei.
o Q1 2025 gross margin: 13.9%; net profit forecast: RMB 912 million.
9. Southern Power Grid (000539)
Vertically integrated copper foil producer, covering both PCB and battery foil.
· Highlights:
o 3μm lithium foil mass production achieved.
o Stable leverage (43.8% debt ratio); rising profitability.
10. Foster (603806)
Solar encapsulant leader expanding into flexible CCL and dry film materials.
· Highlights:
o Flexible copper laminates certified for FPC applications.
o Q1 2025 forecast net profit: RMB 673 million.
Investment Takeaways
· High-end trend:
AI servers and automotive electronics drive demand for high-frequency, high-speed CCLs — leaders include Shengyi Technology and Nanya New Material.
· Cyclical recovery:
Companies like Jinan Guoji and Huazheng New Material benefit from industry rebound.
· Localization of materials:
Dongcai Technology and Hongchang Electronics advance domestic substitution in resins and epoxy systems.
· Dual growth from copper foil:
Jiayuan and Defu gain from both battery and PCB demand.
· Integrated value chains:
Southern Power Grid and Foster leverage vertical integration to strengthen cost and technology advantages.
Source：Sina Finance