Nan Ya Plastics Corp: Blue skies turn to reality, raise PT to NT$200; good progress on M9/M10 CCL and T-glass; Al-grade might form >50% of mix by 2028

研报英文原文证据摘录

Nan Ya Plastics Corp: Blue skies turn to reality, raise PT to NT$200; good progress on M9/M10 CCL and T-glass; Al-grade might form >50% of mix by 2028

AsiaKong)Pacific)LimitedLimited/ J.P.

CCL and E-glass), with highly cyclical earnings. As such, even though NPC’s

2025 CCL capacity was similar to Elite Material’s, its CCL revenue and ASP

was less than half of EMC’s. We forecast NPC’s gap versus industry leaders Key Changes (FYE Dec)

like EMC/Nittobo to narrow in coming years given the company's progress in Prev Cur Δ

next-gen electronic materials. NPC has won multiple M7/M8 orders over the Adj. EPS - 26E (NT$) 6.26 8.63 37.8%

Adj. EPS - 27E (NT$) 8.13 13.41 64.9%

past year and is ramping up production, and was one of 3 companies reportedly

selected for M10 sampling with Nvidia. NPC was also successful in launching Style Exposure

T-glass production and plans to triple capacity by 2028. Given the company is

now operating at close to max utilization for most of its products and only has

one major copper foil expansion starting in 1Q27, we view the next positive

catalysts as: (1) successful M9-10 qualification, (2) expansion of high margin

electronic material capacity, and (3) further upward earnings revisions on

product mix improvement and price hikes.

• Commodity-grade EM upcycle might last longer than you think: On 14

January, we highlighted our expectation for commodity-grade electronic

materials to enter a bull market due to the “server supercycle” coming from

higher AI inference demand. NPC has a historical niche in general server EM,

for which many customers are expected to migrate from M6 CCL to M7+ CCL

in 2H26. We note that capacity upgrades typically come with a capacity

conversion loss of 15-60% depending on product, exacerbating the shortage.