17 Aug 2026 CMB International Global Markets | Equity Research | Company Update

Shengyi Tech (600183 CH) Robust Q2 earnings; AI-driven mix upgrade and ASP hikes in

Shengyi Tech (600183 CH)

Robust Q2 earnings; AI-driven mix upgrade and full swing ASP hikes in full swing

Target Price RMB190.00

Shengyi Tech (SYT) reported strong 1H26 results, with revenue increasing 50% YoY to RMB19.0bn and net profit surging 130% YoY to RMB3.3bn. In 2Q26, revenue rose 54% YoY/34% QoQ to RMB10.9bn, slightly below Bloomberg consensus of RMB11.2bn. Net profit reached RMB2.13bn, up 147% YoY/84% QoQ and well above consensus of RMB1.7bn. GPM expanded to 32.6% from 28.1% in 1Q26, beating the 30.4% consensus estimate. The results reinforce our view that SYT remains a key beneficiary of the AI infrastructure upcycle. Reiterate BUY and raise our TP to RMB190, based on 40x 2027E P/E (previously RMB90 based on 35x 2026E P/E), approximately 2-SD above its 1-yr historical mean. We forecast revenue and earnings CAGRs of 47% and 68% over 2025-28E, implying a PEG of 0.58x. We lift revenue forecasts by 16%/39% and net profit forecasts by 15%/31% in FY26/27E, respectively, reflecting strong AI-CCL/PCB demand and higher margin assumptions driven by ASP increases and a richer high-end product mix.

(Previous TP RMB90.00)

Up/Downside 32.7% Current Price RMB143.21

China Semiconductors Kevin ZHANG

(852) 3761 8727 kevinzhang@cmbi.com.hk

Aaron GUO

(852) 3916 3715 aaronguo@cmbi.com.hk

 Core segments: Broad-based AI-driven growth across CCL & PCB. CCL & prepreg sales volumes increased 14.2%/12.4% YoY, respectively in 1H26, while segment revenue rose 47.7% to RMB12.4bn, reflecting price adjustments and a richer AI product mix. Subsidiary Shengyi Electronics (688183 CH, NR) recorded revenue of RMB5.8bn, up 53.5% YoY, and net profit of RMB1.1bn, up 109% YoY. PCB shipments increased 23.1% YoY, with sales growth outpacing volume as high-layer-count and HDI products continued to ramp up. SYT’s strength across CCL and PCB gives it broad exposure to the AI infra. value chain. We forecast revenue growth of 62%/51% in FY26/27E driven by expansion of high-end CCL products.

Stock Data

Mkt Cap (RMB mn) 336,514.9 Avg 3 mths t/o (RMB mn) 10,974.3 52w High/Low (RMB) 187.20/44.42 Total Issued Shares (mn) 2349.8

Source: FactSet

Shareholding Structure

Guangdong Guangxin Holdings Group

24.4%

Dongguan Guohong Investment

13.3%

Source: HKEx

 Margins: ASP increases and mix upgrades drove another step-up. GPM expanded by 4.8ppt YoY to 30.7% in 1H26. CCL & prepreg GPM increased by 5.5ppt to 29.2%, while PCB GPM rose by 3.4ppt to 31.2%. Stronger pricing and premium AI products drove profit growth ahead of sales. SYT recorded RMB410mn of fair-value gains, mainly related to Novoray’s (688300 CH, NR) convertible bonds, while adj. net profit nevertheless increased 111% YoY. We forecast GPM of 30.6%/31.7% in FY26/27E.

Share Performance

Absolute Relative 1-mth -3.2% -2.2% 3-mth 53.5% 63.3% 6-mth 122.9% 131.7%

Source: FactSet

12-mth Price Performance

 Capacity expansion supports medium-term growth. Jiangxi Phase II reached full production in 1H26, adding annual capacity of 18mn sqm of CCL and 34mn meters of prepreg. Thailand plant is expected to begin trial production in 2H, while the two-phase Songshan Lake project is planned to add 48mn sqm of CCL and 100mn meters of prepreg. Capex reached RMB1.88bn in 1H26. Ramp-up execution and the availability of critical upstream materials remain key variables for earnings delivery beyond 2026.

Source: FactSet

 Reiterate BUY with TP raised to RMB190, based on 40x FY27E P/E, approx. 2-SD above SYT’s one-year historical mean. We believe the multiple is justified by accelerating earnings, structural mix upgrades and exposure to tight AI-related CCL and PCB capacity. Key risks include slower capacity ramp-up, raw-material costs, intensifying competition, etc.

PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk

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17 Aug 2026

Earnings Summary

(YE 31 Dec) FY24A FY25A FY26E FY27E FY28E Revenue (RMB mn) 20,388 28,431 45,930 69,545 90,640

YoY growth (%) 22.9 39.4 61.5 51.4 30.3 Gross margin (%) 22.0 26.5 30.6 31.7 32.8 Net profit (RMB mn) 1,738.7 3,334.0 7,223.3 11,538.9 15,919.7

YoY growth (%) 49.4 91.8 116.7 59.7 38.0 EPS (Reported) (RMB) 0.74 1.39 2.97 4.75 6.55 P/E (x) 193.5 103.0 48.2 30.1 21.9 Source: Company data, Bloomberg, CMBIGM estimates

Figure 1: Earnings revision New Old Diff (%)

RMBmn FY26E FY27E FY28E FY26E FY27E FY28E FY26E FY27E FY28E Revenue 45,930 69,545 90,640 39,631 50,221 N/A 15.9% 38.5% N/A Gross profit 14,052 22,039 29,761 12,087 16,221 N/A 16.3% 35.9% N/A Net profit 7,223 11,539 15,920 6,272 8,786 N/A 15.2% 31.3% N/A EPS (RMB) 2.97 4.75 6.55 2.58 3.62 N/A 15.3% 31.2% N/A Gross margin 30.6% 31.7% 32.8% 30.5% 32.3% N/A 0.1 ppt -0.6 ppt N/A

• Net margin 15.7% 16.6% 17.6% 15.8% 17.5% N/A -0.1 ppt -0.9 ppt N/A

Source: Company data, CMBIGM estimates

Figure 2: CMBIGM estimates vs. BBG consensus

CMBI estimates Consensus Diff (%)

RMBmn FY26E FY27E FY28E FY26E FY27E FY28E FY26E FY27E FY28E Revenue 45,930 69,545 90,640 45,573 66,570 88,843 0.8% 4.5% 2.0% Gross profit 14,052 22,039 29,761 13,349 20,676 28,621 5.3% 6.6% 4.0% Net profit 7,223 11,539 15,920 7,296 10,964 14,824 -1.0% 5.2% 7.4% EPS (RMB) 2.97 4.75 6.55 3.24 4.93 6.10 -8.1% -3.6% 7.4% Gross margin 30.6% 31.7% 32.8% 29.3% 31.1% 32.2% 1.3 ppt 0.6 ppt 0.6 ppt

• Net margin 15.7% 16.6% 17.6% 16.0% 16.5% 16.7% -0.3 ppt 0.1 ppt 0.9 ppt

Source: Bloomberg consensus, CMBIGM estimates

Figure 3: P/E chart

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12-25

06-26

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08-26

1-yr Forward P/E Mean

Mean+1SD Mean-1SD

Mean +2SD

Source: Company data, CMBIGM estimates

Figure 4: P/E band

(RMB)

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03/26

05/26

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Closing Px 9.2x 17.0x 24.8x 32.6x 40.4x

Source: Company data, CMBIGM estimates

Financial Summary

INCOME STATEMENT 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Revenue 16,586 20,388 28,431 45,930 69,545 90,640 Cost of goods sold (13,395) (15,895) (20,905) (31,878) (47,506) (60,878) Gross profit 3,191 4,493 7,526 14,052 22,039 29,761 Operating expenses (1,821) (2,352) (3,082) (4,674) (6,994) (9,016) Selling expense (358) (495) (688) (1,025) (1,553) (2,024) Admin expense (701) (843) (1,088) (1,608) (2,434) (3,172) R&D expense (841) (1,157) (1,450) (2,296) (3,477) (4,532) Others 79 143 145 256 470 712 Operating profit 1,273 2,072 4,434 9,437 15,074 20,798 Other income 2 2 5 6 10 12 Other expense (3) (6) (22) 0 0 0 Gain/loss on financial assets at FVTPL (3) (2) 17 34 45 60 Other gains/(losses) (131) (122) (171) (154) (251) (317) EBIT 1,271 2,068 4,416 9,442 15,084 20,810 Interest income 49 29 18 0 0 0 Interest expense (162) (118) (120) (204) (225) (194) Pre-tax profit 1,271 2,068 4,416 9,442 15,084 20,810 Income tax (123) (200) (524) (1,416) (2,263) (3,122) After tax profit 1,149 1,868 3,892 8,026 12,821 17,689 Minority interest (15) 129 558 803 1,282 1,769 Net profit 1,164 1,739 3,334 7,223 11,539 15,920

BALANCE SHEET 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Current assets 13,999 16,613 19,389 30,447 36,224 48,133 Cash & equivalents 2,756 2,004 1,732 5,137 4,527 7,256 Restricted cash 19 12 12 12 12 12 Account receivables 6,669 9,041 10,913 15,073 19,192 24,674 Inventories 4,271 5,119 5,786 9,061 11,243 14,777 Prepayment 33 132 45 165 233 315 Other current assets 251 304 901 999 1,017 1,100 Non-current assets 10,958 11,031 13,381 15,395 16,685 18,543 PP&E 9,064 8,635 9,729 11,070 11,996 13,000 Right-of-use assets 22 35 36 42 53 67 Deferred income tax 269 315 601 682 878 1,049 Investment in JVs & assos 783 836 952 1,032 1,052 1,123 Intangibles 666 1,095 1,973 2,164 1,955 2,050 Goodwill 0 0 0 0 0 0 Financial assets at FVTPL 30 11 10 265 606 1,061 Other non-current assets 124 103 79 141 145 194 Total assets 24,957 27,643 32,770 45,843 52,909 66,676

Current liabilities 7,297 9,849 12,080 18,564 18,127 22,647 Short-term borrowings 1,465 1,837 2,305 6,171 2,026 2,894 Account payables 4,152 5,968 7,913 10,217 13,351 16,483 Tax payable 82 113 195 230 290 349 Other current liabilities 1,072 1,172 452 460 462 470 Contract liabilities 92 232 264 382 592 763 Accrued expenses 435 528 951 1,104 1,405 1,688 Non-current liabilities 1,959 1,289 1,780 3,138 3,876 5,109 Long-term borrowings 806 558 903 1,919 2,464 3,332 Bond payables 500 0 0 0 0 0 Obligations under finance leases 21 32 31 48 53 69 Deferred income 118 113 124 181 204 260 Other non-current liabilities 515 586 722 991 1,154 1,448 Total liabilities 9,256 11,138 13,859 21,702 22,003 27,755

Share capital 2,355 2,429 2,429 2,429 2,429 2,429 Retained earnings 5,357 5,902 6,585 11,014 16,497 22,743 Other reserves 6,272 6,574 7,709 7,709 7,709 7,709 Total shareholders equity 13,983 14,905 16,724 21,152 26,635 32,881 Minority interest 1,717 1,600 2,187 2,989 4,271 6,040 Total equity and liabilities 24,957 27,643 32,770 45,843 52,909 66,676

CASH FLOW 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Operating Profit before taxation 1,149 1,868 3,892 8,026 12,821 17,689 Depreciation & amortization 835 870 921 1,013 1,158 1,273 Tax paid (34) (25) 37 184 (31) 121 Change in working capital 494 (1,798) (199) (5,173) (3,339) (6,051) Others 300 542 624 145 628 373 Net cash from operations 2,743 1,456 5,274 4,195 11,236 13,404

Investing Capital expenditure (1,109) (926) (2,898) (2,576) (1,913) (2,417) Acquisition of subsidiaries/ investments 64 47 170 204 263 341 Net proceeds from disposal of short-term investments

(116) (55) (722) (221) (296) (395)

Others (2) (0) 6 (80) (20) (71) Net cash from investing (1,162) (934) (3,444) (2,673) (1,967) (2,542)

Financing Dividend paid (1,287) (1,192) (1,551) (2,999) (6,281) (9,868) Net borrowings (935) (281) 94 4,881 (3,598) 1,735 Proceeds from share issues 318 773 1,147 0 0 0 Others (15) (577) (1,215) 0 0 0 Net cash from financing (1,919) (1,276) (1,525) 1,883 (9,879) (8,133)

Net change in cash Cash at the beginning of the year 3,095 2,756 2,004 1,732 5,137 4,527 Exchange difference (1) 3 3 0 0 0 Others (338) (754) (275) 3,405 (610) 2,729 Cash at the end of the year 2,756 2,004 1,732 5,137 4,527 7,256

GROWTH 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Revenue (7.9%) 22.9% 39.4% 61.5% 51.4% 30.3% Gross profit (19.6%) 40.8% 67.5% 86.7% 56.8% 35.0% Operating profit (28.7%) 62.9% 113.9% 112.8% 59.7% 38.0% EBIT (28.3%) 62.7% 113.6% 113.8% 59.7% 38.0% Net profit (24.0%) 49.4% 91.8% 116.7% 59.7% 38.0%

PROFITABILITY 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Gross profit margin 19.2% 22.0% 26.5% 30.6% 31.7% 32.8% Operating margin 7.7% 10.2% 15.6% 20.5% 21.7% 22.9% Return on equity (ROE) 8.5% 12.0% 21.1% 38.1% 48.3% 53.5%

GEARING/LIQUIDITY/ACTIVITIES 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec Current ratio (x) 1.9 1.7 1.6 1.6 2.0 2.1

VALUATION 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

P/E 286.4 193.5 103.0 48.2 30.1 21.9 P/E (diluted) 292.3 196.2 103.8 48.2 30.1 21.9

Source: Company data, CMBIGM estimates. Note: The calculation of net cash includes financial assets.

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CMBIGM Ratings

BUY : Stock with potential return of over 15% over next 12 months HOLD : Stock with potential return of +15% to -10% over next 12 months SELL : Stock with potential loss of over 10% over next 12 months NOT RATED : Stock is not rated by CMBIGM

OUTPERFORM : Industry expected to outperform the relevant broad market benchmark over next 12 months MARKET-PERFORM : Industry expected to perform in-line with the relevant broad market benchmark over next 12 months UNDERPERFORM : Industry expected to underperform the relevant broad market benchmark over next 12 months

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