1、 This research report provides general information only.No part of this report may be used or reproduced or quoted in any manner whatsoever in Taiwan by the press or other persons without the express written consent of BofA Securities.Employed by a non-US affiliate of BofAS and is not registered/qua

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3、ch reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.Refer to important disclosures on page 8 to 10.Analyst Cer

4、tification on page 5.Price Objective Basis/Risk on page 5.12852248 Shengyi(A)Solid growth implied by 1H25 preliminary announcement:raise PO,but reiterate U/P Reiterate Rating:UNDERPERFORM|PO:23.50 CNY|Price:37.46 CNY Strong growth implied by 1H25 preliminary numbers Earlier this week,Shengyi announc

5、ed preliminary 1H25 net income,which implies 2Q25 net profit of CNY861mn,at the mid-point of the range.Based on this,we expect 2Q25 net income to grow 53%/59%QoQ/YoY,or 46%/56%QoQ/YoY if excluding the extraordinary items.Simultaneously,the companys subsidiary Shengyi Electronics(Shengyis PCB busines

6、s)also announced preliminary 1H25 revenue and net income,implying growth of 38%/101%QoQ/YoY and 65%/374%in 2Q25,respectively,at the mid-point of the range.Sharing benefits from growing TAM in ASICs As stated in(see report)our CCL industry update,we expect stronger for longer TAM growth driven by AI