Nan Ya Rallies as CCL Prices Rise and Analysts Raise Target Prices

Highlights

Nan Ya (1303-TW) surged during Taiwan’s market rebound on the 21st, reaching its limit-up price of NT$325.5. The stock gained support from reports that China-based CCL leader Kingboard had notified customers of price increases, alongside rising AI-server demand and limited supplies of high-end glass-fiber cloth. UBS and Macquarie raised their price targets to above NT$390, citing stronger-than-expected CCL margins and potential contributions from investees Nanya Technology (2408-TW) and Formosa Petrochemical (6505-TW). High-end material demand and supply constraints are central to the bullish outlook. Nan Ya expects fourth-quarter operations to outperform the third quarter.

Sentiment Analysis

• Overall sentiment: Positive. The article describes a strong intraday share-price move, with Nan Ya reaching its limit-up price of NT$325.5 and trading above its 5-day and 10-day moving averages. It also notes that daily trading volume had exceeded 100,000 lots for 7 consecutive trading days, indicating sustained investor attention.


• Drivers of optimism: Reports of CCL price increases, firm AI-server demand, and shortages of high-end glass-fiber cloth support expectations for the company’s electronic-material business. UBS and Macquarie both raised their target prices to above NT$390.


• Forward-looking factors: Nan Ya’s M7 and M8 CCL products have shipped, while M9 and M10 are undergoing customer qualification. The company expects fourth-quarter performance to exceed the third quarter and sees a chance of a record annual revenue result.


• Qualification: Much of the longer-term outlook depends on demand, supply conditions, customer certifications, and execution. The article reports analyst and industry expectations rather than guaranteed outcomes.

Article Text

Taiwan’s stock market staged a broad rebound on the 21st, and Nan Ya (1303-TW) advanced sharply during the session. The company’s shares opened higher and continued to climb, touching the limit-up price of NT$325.5. The stock moved above its 5-day and 10-day moving averages. Daily trading volume had also exceeded 100,000 lots for 7 consecutive trading days, reflecting persistent activity in the shares.

Several industry developments supported the rally. Reports said Kingboard, a leading China-based copper-clad laminate (CCL) manufacturer, had sent customers notices of price increases. CCL is a key material used in printed circuit boards and electronic products. Meanwhile, demand associated with AI servers was continuing to strengthen, while supplies of high-end glass-fiber cloth—a material used in electronic applications—were tight. Together, these factors drew attention to the pricing outlook for materials in Nan Ya’s electronic-materials business.

Foreign brokerages UBS and Macquarie both expressed a favorable view of Nan Ya’s prospects and raised their price targets to above NT$390. Their assessments cited CCL product gross margins that were better than expected. They also pointed to potential earnings contributions from Nan Ya’s investments in Nanya Technology (2408-TW) and Formosa Petrochemical (6505-TW). The revised targets represent brokerage expectations and do not establish a guaranteed future share price.

According to the notice issued by Kingboard, demand in the glass-fiber cloth market was strong, while supplies of upstream high-end glass-fiber cloth and glass yarn were tight. Prices for glass-fiber cloth rose by more than 10% in October. Selling prices for upstream products made using glass-fiber cloth as a production input also increased by 15%. These figures indicate that pricing pressure extends across parts of the materials supply chain, although the effect on individual companies depends on their product mix, contracts, and costs.

Market participants said Nan Ya could benefit from the expansion of AI infrastructure. The company is continuing to develop and qualify higher-end electronic materials, while monitoring supply and demand across electronic materials, IC substrates, CCL, and upstream memory-related fields. Its strategy includes advancing its position in higher-performance materials as manufacturers respond to changing requirements for computing and data infrastructure. Industry participants are optimistic about growth in demand for high-end CCL and expect demand to remain strong through 2030.

Nan Ya’s CCL material upgrades have reached a stage where product qualification and shipments are proceeding in parallel. Supply of HVLP4 is gradually stabilizing, and the company has shipped CCL products in M7 and M8 specifications. M9 and M10 products are in customer qualification. M10 could receive preliminary customer qualification as early as the first half of 2027. These milestones show progress in the product pipeline, while customer qualification remains an important condition for broader commercialization.

For the fourth quarter, Nan Ya had previously forecast that business in October and the quarter as a whole could continue to improve. It expects fourth-quarter operations to be better than those in the third quarter, and said full-year revenue could set a new historical high. The company also expressed optimism about the outlook for next year. The outlook combines near-term expectations for sequential improvement with longer-term opportunities in high-end electronic materials, but remains dependent on demand, supply availability, and customer approvals.

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