Wu Wei from Investor Network.
At a critical moment when the global electronics industry is undergoing deep adjustments and technological changes, Jiangnan New Materials (603124.SH), with its technological accumulation and strategic layout in the field of Copper-based New Materials, is about to enter the Capital Markets.
As a leading enterprise in China's electronic circuit industry for Copper-based materials, Jiangnan New Materials adheres to a "one body, two wings" development strategy, demonstrating strong growth resilience and industry foresight amidst the historical opportunities of PCB industry recovery and New energy Fund sector rise. In 2024 and the first quarter of 2025, Jiangnan New Materials' revenue continues to grow at a double-digit growth rate, fully reflecting its high growth potential.
The success of Jiangnan New Materials' IPO not only signifies a leap in its capital strength but also reconstructs its industrial voice. After capitalizing, Jiangnan New Materials' competitive strength is expected to improve significantly.
Establishing technological barriers to build a growth moat.
In 2023, amid a 15% year-on-year decline in the global PCB output value during the industry's winter, Jiangnan New Materials achieved a revenue of 6.818 billion yuan, a year-on-year increase of 9.44%; realized a Net income of 0.142 billion yuan, year-on-year growth of 35.24%, significantly outperforming comparable companies. In 2024, the company continues to maintain high growth, achieving a revenue of 8.69 billion yuan that year, a year-on-year increase of 27.59%; and a Net income of 0.176 billion yuan, a year-on-year increase of 32.5%. In the first quarter of 2025, according to Jiangnan New Materials' forecast, the company's revenue is expected to grow year-on-year by 19.02% to 29.53%, with the Net income also growing year-on-year by 0.94% to 33.28%.
This ability to thrive across cycles stems from its differentiated product matrix. The company's Copper ball products (accounting for 90%) effectively hedge against raw material fluctuations with a "Copper price + processing fee" model, the Copper oxide powder (accounting for 8%) has seen both volume and price rise, and the high-precision heat sinks have also broken through production bottlenecks. In addition to PCB customers, Jiangnan New Materials is continuously expanding its customer base in downstream applications such as photovoltaics, Lithium Battery, and organic silicon catalysts, with related products already achieving bulk sales.
After 18 years of deep cultivation, Jiangnan New Materials has established a customer network covering the global PCB Industry Chain. Among the top 30 ranked PCB companies, 28 are company clients, and the coverage rate among the top 100 reaches 83%. This deep binding comes from precise matching on the technical side, with the company's independently developed phosphor-copper ball cold heading process controlling grain size to within 50μm, improving yield to 99.6%, and electronic-grade Copper oxide powder acid dissolution speed requiring only 10 seconds, helping customers improve production efficiency by 15%. In Avary Holding's (002938.SZ) high-end HDI board production line and Shennan Circuits' (002916.SZ) IC Carrier project, the company's products have all become core material suppliers.
In this IPO fundraising, Jiangnan New Materials will focus on three strategic directions. The 0.012 million tons of electronic-grade copper oxide powder project will accurately meet the emerging demands for copper plating in photovoltaic components and composite copper foil for Lithium Batteries; the construction of the R&D center will strengthen the company's technological reserves; and the establishment of the marketing center will enhance the company's service capability to better serve its customers.
Multidimensional breakthroughs lead to industry transformation.
In 2024, the PCB Industry is expected to show structural recovery characteristics. According to Prismark, the global high-end PCB market is forecasted to grow at a compound annual growth rate of 14% from 2023 to 2026, with AI Server PCB demand increasing by over 69% annually. Jiangnan New Materials will deeply benefit from industry upgrades, with its copper ball products already entering the production line for 5G antenna boards at Suzhou Dongshan Precision Manufacturing (002384.SZ) in the advanced HDI board field; in the IC Carrier field, the ultra-fine copper powder developed in collaboration with Shenzhen Kinwong Electronic (603228.SH) has also achieved mass production. The company's copper ball products held a domestic market share of 41% in 2023, demonstrating its position as an industry leader.
As a national-level Specialized, Special and New "little giant" enterprise, the company has taken the lead in formulating the national standard for "Copper and Copper Alloy Balls for Printed Circuit Boards" and currently holds 96 patents (including 17 invention patents). In the photovoltaic field, the self-developed copper oxide powder catalyst has improved the conversion rate of silicon materials by 1.2%, and the product has now entered the customers' supply chain; in the Lithium Battery sector, the copper powder for composite copper foil has also passed customer validation and is about to enter mass production.
The company has established a "green materials + low-carbon manufacturing" dual-track strategy, with two national-level green factories achieving low-carbon production throughout the entire process, and it has applied for multiple waste heat recovery patents, effectively reducing energy consumption and emissions; product carbon footprint certification covers the entire lifecycle, providing ESG compliance assurance for international clients such as Apple and Tesla.
In terms of globalization, the company has its headquarters in Yingtan, Jiangxi, as its core, with two major production bases established in Huizhou, Guangdong, and Kunshan, Jiangsu, as well as a Southeast Asia operation center set up in Thailand to accelerate proximity to international clients such as Samsung and LG.
In recent years, Jiangnan New Materials' R&D investment share has continuously increased to 0.37%, and net R&D expenses have risen. Currently, the company has dozens of research projects underway, including nano copper powder, high thermal conductivity composite materials, and other cutting-edge directions, and its R&D capabilities will be further enhanced with the completion of the R&D center.
The development history of Jiangnan New Materials is a vivid epitome of the transformation of China's manufacturing industry from "following" to "leading." Through continuous technological innovation and industry collaboration, the company has built a complete product matrix that includes copper balls, copper oxide powder, and thermal materials, and has formed technological reserves in strategic areas such as new energy, photovoltaics, and AI.
This IPO not only marks Jiangnan New Materials' leap in Capital strength but also the reconstruction of industrial discourse power. As the electronic industry enters a new era driven by AI and New Energy, this leading Copper-based materials company is setting sail towards a broader blue ocean with technology as its anchor and innovation as its sail. In the historical process of domestic substitution and Global Industry Chain reconstruction, the value creation of Jiangnan New Materials is worth looking forward to. (Produced by Thinking Finance)
