On the evening of July 19th, Anhui Tongguan Copper Foil Group Co.,Ltd. (referred to as Tongguan Copper Foil) released its preliminary earnings forecast for the first half of 2026.
The forecast indicates the company expects to achieve a net profit attributable to shareholders of between 2.05 billion yuan and 2.25 billion yuan, representing a year-on-year increase of 486.49% to 543.70%.
It also anticipates a non-GAAP net profit, excluding non-recurring gains and losses, in the range of 2 billion yuan to 2.2 billion yuan, a surge of 724.05% to 806.45% compared to the same period last year.
Key Drivers of Performance Growth
The company's performance forecast highlights that during the reporting period, it concentrated on the demands of key clients, leading to a situation where supply of high-frequency and high-speed copper foil could not meet demand, resulting in a year-on-year increase in sales volume.
Furthermore, the company persistently optimized its product mix, increasing the proportion of higher value-added products such as high-frequency and high-speed copper foil, which drove growth in processing fee income.
Building on this, Tongguan Copper Foil continued to deepen efforts in cost reduction and efficiency enhancement, consistently improving operational efficiency and management standards.
This led to effective reductions in related costs and an improvement in product gross margin.
Copper Foil's Role in the Industry
Electrolytic copper foil serves as a fundamental functional raw material in the electronics manufacturing industry, often described as the "neural network" for signal and power transmission in electronic products.
It is primarily used in the production of printed circuit boards and the manufacturing of lithium-ion batteries.
Market Demand and AI Infrastructure
It is understood that the global pace of computing infrastructure construction continues to accelerate.
High-end AI servers like the GB200 and GB300 use over ten times more HVLP (Hyper Very Low Profile) copper foil per unit compared to traditional servers.
High-frequency, high-speed copper-clad laminates require HVLP copper foil with low signal loss for optimal performance.
A research report from Soochow Securities Co., Ltd. projected that the global market demand for HVLP copper foil specifically for AI servers is expected to reach 24,000 metric tons in 2026, a 260% year-over-year increase.
The demand is forecasted to grow to 50,000 metric tons by 2027 and is anticipated to potentially exceed 110,000 metric tons by 2030.
Company's Position and Product Development
Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, commented that as a company capable of mass-producing HVLP1 to HVLP4 generation copper foils, Tongguan Copper Foil focuses on areas including high-frequency/high-speed copper foil, carrier copper foil, and solid-state batteries.
The expanding shipment scale of its high-end products has become one of the core engines driving revenue growth.
It is noteworthy that Tongguan Copper Foil's HVLP5 generation copper foil is currently under development, and the company reports having already achieved breakthroughs in key performance indicators.
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