According to the Zhitong Finance APP, Shenwan Hongyuan released a research report stating that AI servers, as computing power infrastructure, will drive the demand innovation for upstream components and materials due to structural upgrades, significantly enhancing the value of PCBs and CCLs. The electronic resin system is key to improving CCL performance, with BMI, PPO, and OPE resins standing out, while ODV and PTFE resins are becoming the future iteration direction. With continuous breakthroughs in the entire domestic resin, CCL, and PCB industry chain, the market share and voice of domestic electronic resin companies are expected to continue to rise. Looking ahead, under the pursuit of better dielectric performance, emerging electronic resin materials such as hydrocarbon resin ODV and polytetrafluoroethylene resin PTFE are seen as important development directions, and their proportion in higher-grade CCLs will rapidly increase.

Shenwan Hongyuan's main viewpoints are as follows:

The long-term trend of growing computing power demand continues, and AI servers, as computing power infrastructure, will drive the demand innovation for upstream components and materials, significantly enhancing the value of PCBs and CCLs. Servers are the carriers of computing power, and the demand for AI computing power drives the volume of AI servers. According to TrendForce's previous estimates, the shipment volume of AI servers is expected to reach 1.67 million units in 2024, with an annual growth rate of 41.5%. The strong growth in the AI field has prompted an iterative upgrade of computing power hardware, with printed circuit boards (PCBs) being the core link in electronic devices, leading to increased performance requirements. The performance of copper-clad laminates (CCLs) directly affects the speed and quality of signal transmission in PCBs, with the dielectric constant (Dk) affecting signal propagation speed and the dielectric loss factor (Df) affecting signal transmission quality. To cope with high-frequency signals and high-speed information transmission, the electrical performance of copper-clad laminates needs to iterate towards low Dk and low Df, making high-frequency and high-speed resins the focus of industry attention. In addition, the upgrade of server bus standards from PCIe 4.0 to PCIe 5.0 further catalyzes the high-speed copper-clad laminate market.

The electronic resin system is key to improving CCL performance, with BMI, PPO, and OPE resins standing out, while ODV and PTFE resins are becoming the future iteration direction. The performance of CCLs is mainly achieved through the characteristics of electronic resins. Under the trend of high frequency and high speed, dual maleic anhydride resin BMI and polyphenylene ether resin PPO are gradually entering the market due to their excellent dielectric performance and thermal stability, with demand continuing to grow rapidly.

Currently, the main global suppliers of BMI resin include Dongcai Technology, Japan's KI, and Japan's DAIWA, while the main global suppliers of PPO resin include Shengquan Group, Sabic, and Mitsubishi Gas Chemical. Especially with the continuous breakthroughs in the entire domestic resin, CCL, and PCB industry chain, the market share and voice of domestic electronic resin companies are expected to continue to rise. Looking ahead, under the pursuit of better dielectric performance, emerging electronic resin materials such as hydrocarbon resin ODV and polytetrafluoroethylene resin PTFE are seen as important development directions, and their proportion in higher-grade CCLs will rapidly increase.

Investment analysis opinion: Give the industry a "positive" rating. AI servers, as computing power infrastructure, drive upstream demand innovation, and hardware iteration accelerates the volume of high-frequency and high-speed resins. **

Key Companies: Shengquan Group (leading in PPO and OPE resins), Dongcai Technology (leading in BMI resins).

Shengquan Group (605589.SH): Deeply engaged in the synthetic resin industry chain, with a solid advantage in its main businesses of phenolic resin and furan resin. The electronic resin segment is extending from electronic-grade epoxy and phenolic resins to high-end and diversified products. Currently, it is the leading domestic supplier of PPO resin, with a 300-ton pilot production line in 2024 facing strong demand. The successful expansion of production capacity will bring incremental growth, while the higher value-added new product OPE is expected to ramp up quickly in 2025. The more advanced ODV resin also has a production capacity in the hundred-ton range, achieving small-scale batch shipments. In other business areas, the biomass project at the Daqing base is expected to continue reducing losses, and the demand for silicon-carbon anodes in the downstream porous carbon sector is improving. The new production capacity coming online in 2025 will also contribute to performance growth.

Dongcai Technology (601208.SH): Focused on insulation materials, with a strategic layout in optical film materials and electronic resins. It has become a leading domestic supplier of BMI resin, with a production capacity of 3,700 tons of BMI and 1,200 tons of reactive ester resin. The company announced plans in 2024 to invest in the construction of 20,000 tons of electronic materials for high-speed communication substrates, including PPO, BMI, and hydrocarbon resins. In terms of optical film materials, the implementation of new subsidy policies for mobile phones and other digital products by the National Development and Reform Commission has activated the consumer electronics market, leading to an explosion in sales of mobile phones, tablets, etc., which is expected to drive demand for upstream optical film materials.

Risk Warning: 1) Downstream demand may not meet expectations; 2) Product introduction and ramp-up may not meet expectations; 3) Project construction and production may not meet expectations