[zz] Rebalancing Period: Odds Emerge in PCB Copper Foil Sector

English summary

### [zz] Rebalancing Period: Odds Emerge in PCB Copper Foil Sector

Time: 2026-07-31 21:37:01

Content: Based on 2027 neutral earnings expectations, Defu Technology 15X, Hailiang Co., Ltd. 11X, Zhongyi Technology 16X, NuoDe Co., Ltd. 15X. In terms of valuation, Hailiang has a higher safety margin, while Defu Technology has a clearer profit step-up, showing a "high elasticity option". ➠Defu Technology: Current PE (TTM) at 47% historical percentile. Lithium battery copper foil profit per ton is RMB 7,000-8,000, shipments of 145,000 tons, corresponding to 2027 earnings contribution of RMB 1.1 billion. Considering limited new annual capacity in the copper foil sector, assign 15X for RMB 16.5 billion; electronic circuit copper foil plans 50,000 tons of high-end capacity, with Phase I capacity of 25,000 tons landed in H1 2027. The company already has HVLP1-3 mass production and shipping capabilities. In 2027, neutral expectation for high value-added product shipments is 20,000 tons (including 10,000 tons of RTF), corresponding to earnings contribution of RMB 1.3 billion, assign 20X for RMB 2.6 billion. Total RMB 4.25 billion. The current market cap is at an oversold bottom, with considerable odds.…