TGCF(301217) -·2025-01-16 07:25Summary of Conference Call on Copper Foil Company Industry Overview - The conference call primarily discusses the copper foil industry, specifically focusing on PCB (Printed Circuit Board) and lithium battery products. Key Points and Arguments - PCB Orders and Production: In January 2024, PCB orders remain saturated, with plans to continue production during the Spring Festival to meet demand. Processing fees have seen a slight increase, contributing to overall gross margin improvement. Expected profit from February orders will be confirmed by late January [2][3][4]. - Processing Fee Increases: Processing fees for lithium battery products have risen due to successful bidding, while PCB processing fees have increased by approximately 1,000 to 2,000 yuan [4]. - APPLP Product Development: The company has transitioned from relying on Japanese, Korean, and Taiwanese technologies to developing its own APPLP products, with expected monthly shipments reaching 100 tons in the first half of 2024. These products are aimed at high-demand applications such as base station servers and data centers [5][6]. - Production Challenges: The production of APPLP products faces challenges including low roughness, high-temperature stability, and corrosion resistance, with a validation cycle of about two years [6]. - SIP Product Supply: The company is currently supplying first and second-generation SIP products primarily for server applications, with third-generation products in small batches and fourth-generation products expected to be certified by 2025 for advanced applications like millimeter-wave radar [7]. - High-Frequency Copper Foil Projections: High-frequency and high-speed copper foil is projected to account for 20%-25% of the company's total PCB copper foil in 2024, with expectations to exceed 30% by 2025 [8]. - HVLP Market Position: The global HVLP (High-Voltage Low-Power) copper foil market is dominated by Japanese companies, with the company being a significant domestic supplier. Major clients include well-known Taiwanese and domestic PCB manufacturers [9]. - Direct Engagement with PCB Manufacturers: The company plans to directly engage with some PCB manufacturers in 2025 to reduce the time taken to connect with end customers, moving away from reliance on CCL (Copper Clad Laminate) manufacturers [13]. - 2025 Shipment Goals: The company aims to ship between 60,000 to 65,500 tons in 2025, with PCB copper foil expected to account for 35,000 tons, while the remainder will be lithium battery products [14]. - Production Line Flexibility: The company is prepared to switch production lines between lithium battery and PCB products based on market conditions, with a quick conversion process due to similar core operations [15]. Additional Important Information - Application Areas for HS Copper Foil: HS (High-Speed) copper foil is primarily used in base stations and server applications [17]. - Roughness Comparison: RTF (Roughness Transfer Function) surface roughness is similar to low-grade HVLP, but the two have different processes and application scenarios [16]. This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, market positioning, and product development initiatives within the copper foil industry.