Elite Material Co Entering the new era

Research evidence excerpt

Elite Material Co Entering the new era

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Elite Material Co Overweight

2383.TW, 2383 TT

Entering the new era Price (21 May 26):NT$4,690.00

▲Price Target (Dec-26):NT$5,850.00

Prior (Dec-26):NT$4,950.00

• LTA a newly emerging trend in CCL industry. In recent months, we started

to see major GPU vendors/CSPs entering/negotiating LTAs with multiple Technology

Taiwan CCL producers. Unlike other parts of the tech hardware component Jerry Tsai AC

supply chain, LTA signing is a very new phenomenon in the CCL industry. (886-2) 2725-9867

However, the situation is rising very quickly, and by now we have seen LTAs jerry.tsai@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited

covering 30% or more (and rising) of the foreseeable output for these CCL

Josie Yu producers. While the binding power of these CCL LTAs typically isn’t as strict

(886-2) 2725-9877

as some of the substrate LTAs we have seen in recent months, this new josie.yu@jpmorgan.com

development signals the CCL material is indeed gaining strategic importance J.P. Morgan Securities (Taiwan) Limited

in the supply chain. We also believe the agreement will help CCL makers to Gokul Hariharan

have even better visibility (which is already lengthening to 8-12 weeks) to plan (852) 2800-8564

ahead the upstream material procurements, which is very positive for cost gokul.hariharan@jpmorgan.com

management and margin. J.P. Morgan Securities (Asia Pacific) Limited/ J.P. Morgan Broking (Hong Kong) Limited

• Substrate CCL to be a revenue contributor starting 2H. We also note that

EMC’s visibility to enter the substrate CCL (practically a whole new TAM)

continues to rise in recent weeks. We now believe the company will Key Changes (FYE Dec)