China CCL Sector: Cycle update: raise FR4 ASP; PTFE pulled forward

UBS China CCL Sector cycle update: We conducted field trips/meetings across the APAC PCB/CCL supply chain in Sep. After KBL raised FR4 CCL prices again by 10-20% at end-Aug and SYT started another round of hikes in Sep, we believe FR4 CCL prices (pre-tax) are now likely >Rmb340. On the supply side, we expect limited new capacity from either E-glass or CCL to come online in 2027; we forecast E-glass fabric prices to increase another 10-15% in Oct to Rmb15+ by YE26. On the demand side, supply security is prioritized over cost and end-customers have accepted price hikes since July. We now forecast FR4 ASP to reach Rmb383/443 by YE26/1H27E. On AI, we expect the switch-tray PCB in a potential VR300 NVL576 NPO/CPO form factor to adopt a 32L PTFE-hybrid design, and expect SYT to win the lion's share in 2027/28E;