Shandong Sinocera - A: There is no alternative – Buy the upside optionality; Strong momentum of MLCC chain; Al-grade capacity to ramp up

Research evidence excerpt

Shandong Sinocera - A: There is no alternative – Buy the upside optionality; Strong momentum of MLCC chain; Al-grade capacity to ramp up

Asia Pacific Equity Research

02 July 2026

Overweight

Shandong Sinocera - A 300285.SZ, 300285 CH

Price (01 Jul 26): Rmb98.82

There is no alternative – Buy the upside optionality;

▲ Price Target (Dec-27): Rmb136.00

Strong momentum of MLCC chain; AI-grade Prior (Jun-27): Rmb60.40

capacity to ramp up

Sinocera is the only A-share listed domestic MLCC ceramic powder supplier. China

Its share price has rallied 102% since 27 May, vs SZCOMP Index up 1%, due Asia Oils

to continued competitor price hikes across electronic materials and rising

Lei Mu ACexpectations for potential good news of MLCC price hike penetration through

upstream players (manufacturers and distributers) to the downstream (86-21) 6106 6319

lei.mu@jpmorgan.com

(materials suppliers). However, we note that the majority of investors remain SAC Registration Number: S1730521050002

skeptical and uninvested in Sinocera, preferring more obvious pure plays of J.P. Morgan Securities (China) Company Limited

MLCC component and PCB chain companies, which on average have seen

their share prices rise +315% YTD (vs Sinocera +261% /SZCOMP Index Key Changes (FYE Dec)

+13%). High-end MLCC powder capacity ramp-up and potential PCB new Prev Cur Δ

orders in 2027 might be the multi-driver catalysts. We raise our 2027/28E EPS Adj. EPS - 27E (Rmb) 0.99 1.20 21.5%

by 21%/29% to reflect recent MLCC price hikes and higher AI-grade product

mix (JPMe high-end MLCC now >35% of segmental revenue by 2027, vs Style Exposure

negligible in 1H26), and our price target to a Street high of Rmb136 (based on

93x P/E, Rmb1.46 2028E EPS).

• Good progress on AI-grade MLCC powder capacity expansion.