China CCL: Nanya New Material (688519.SS; Not Covered) – Downstream Accepting CCL Hikes; Mgmt Sees Prices Rising Further

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China CCL: Nanya New Material (688519.SS; Not Covered) – Downstream Accepting CCL Hikes; Mgmt Sees Prices Rising Further

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22 Jul 2026 09:51:53 ET │ 9 pages

China CCL

Nanya New Material (688519.SS; Not Covered) – Downstream

Accepting CCL Hikes; Mgmt Sees Prices Rising Further

CITI'S TAKE

We hosted Nanya management for an investor update call on 22 Jul. Mgmt

said the CCL price cycle still has room to run. Standard halogen-free sheet

prices are above the 2021 peak, and Nanya raised its illustrative minimum Alice CaiAC

gross-margin threshold for standard-grade orders again in 3Q26. +852-2501-2704

Consumer and auto customers began accepting price increases in the alice.cai@citi.com

past month, before reaching the point of idling lines due to material Eric Lau

shortages. Mgmt’s preliminary view is that low-end glass fabric supply +852-2501-2726

may start easing only around end-2027, with no timeline for high-end eric.h.lau@citi.com

grades. Nanya announced 1H26 net profit of Rmb420–500mn, up 382–

473% YoY.

Existing capacity fully utilized; growth shifts to price and mix

On volume: Monthly output averaged 3.1–3.2mn sheets in 2025 versus ~2.2mn early

that year on ~60% utilization. Lines have run full throughout 2026 at 3.6–3.7mn

sheets/month, below the 4.0mn design level due to high-speed changeovers. Sales

exceed 4mn sheets/month, including outsourced mid-/low-end volume, while

finished-goods inventory is near zero. Further volume growth awaits the N8 addition

in 3Q26.

On price: A standard halogen-free sheet sells above Rmb300 versus Rmb160–170 at

end-2025 and the 2021 peak of ~Rmb280. The top 20 customers, accounting for

~80% of revenue, generally reprice monthly with a lag; large customers still pay

Rmb200-plus, while some orders are priced at delivery.