Shengyi Technology: 3Q26 prelim: unleash full force of CCL upcycle

UBS First Read on Shengyi Technology (600183.SH): the company's 9M26 preliminary results were a strong beat versus both UBS and consensus. Net profit to parent more than doubled year on year and, at the midpoint, already tracked well ahead of full-year consensus, implying a sharp sequential and year-on-year acceleration in 3Q26. The upside was driven mainly by copper clad laminate (CCL): while listed subsidiary SYE's profit growth was more modest, CCL net profit at the parent level surged on price hikes and a better product mix, confirming UBS's view that FR4 CCL price increases would catch up in 2H26. UBS raises its industry CCL price assumptions, arguing that AI-driven PCB demand, ASIC customer ramp-up and adoption of high-end materials such as M9 and PTFE should support medium-term growth and long-term competitive positioning. On higher earnings forecasts UBS keeps its Buy rating and RMB209 price target, while trimming the target PE to reflect greater investor caution toward A-share