China Copper Foil: Feedback from recent investor conversations

MTD share performance has diverged meaningfully across the AI copper foil supply chain, with Defu (+15%) outperforming global peers such as Mitsui Kinzoku (-22%) and Co-tech (-8%). Following our recent copper foil update, which highlighted Defu's September HVLP target production of c700t, close to Mitsui's H226 target of 730t, we discussed the sector with 10+ investors. While the market remains constructive on AI-driven demand growth, investor focus has shifted increasingly toward execution. Key areas of debate include: (1) realised HVLP shipments and yield progression; (2) the achievability of 2027 volume and capacity targets;