LongYoung Electronic (301389.SZ) — Company Comment

HVLP5 Copper Foil Qualification Progressing

Metric	Value
Ticker	301389.SZ
Rating	Buy (maintain)
Report date	December 24, 2025
Last close	RMB 55.15
Total / free-float shares	283 / 85 million
Market cap / free-float	156 / 47 (RMB 100 mn)
52-week high / low	RMB 76.30 / 15.15
Debt-to-assets	4.0%
Largest shareholder	LongYoung International Co., Ltd.

Metric	2024A	2025E	2026E	2027E
Revenue (RMB mn)	288	430	578	691
Growth (%)	8.51	49.43	34.36	19.47
EBITDA (RMB mn)	77.49	160.11	243.17	303.31
Net profit to parent (RMB mn)	82.23	110.37	159.96	203.28
Growth (%)	-15.02	34.22	44.93	27.08
EPS (RMB)	0.29	0.39	0.56	0.72
P/B	7.05	6.95	6.80	6.62
EV/EBITDA	42.20	95.33	63.02	50.63

Core business: Still EMI shielding & insulation for consumer electronics — stable operations.

Closing: Wise Union and Deyou consolidated Aug & Sep 2025 — earnings accretion ahead.

Wise Union: Strong polymer & absorbing materials R&D — tech & customer synergy.

Deyou: Builds shielding – mounting – thermal – insulation one-stop for components; speeds composite copper foil and other new materials.

Product: Proprietary HVLP5 — ultra-low roughness, high peel strength.

Use case: AI servers and other low-loss, high-speed PCBs.

Status: Samples to leading CCL houses in Mainland China, Taiwan, and Japan; customer validation in progress.

Capacity: First modular production line built; equipment ramping — HVLP5 set to benefit from AI server demand.

Metric	2024A	2025E	2026E	2027E
Growth
Revenue	8.5%	49.4%	34.4%	19.5%
Operating profit	-14.1%	34.8%	44.0%	25.6%
Net profit	-15.0%	34.2%	44.9%	27.1%
Profitability
Gross margin	48.0%	51.7%	51.8%	52.0%
Net margin	28.6%	25.7%	27.7%	29.4%
ROE	3.7%	4.9%	7.0%	8.6%
ROIC	2.2%	3.7%	5.6%	7.0%
Solvency
Debt-to-assets	4.0%	21.5%	23.3%	23.4%
Current ratio	24.97	6.96	5.43	5.15
Efficiency
AR turnover	3.48	4.03	3.89	3.71
Inventory turnover	3.51	4.47	4.98	5.03
Asset turnover	0.12	0.17	0.20	0.23

Source: China Post Securities Research