Jiangsu Boqian New Materials Stock Co Ltd

Boqian New Materials released its 2026 interim report on August 28. Leveraging its dual-engine strategy in nickel-based and copper-based powder materials, the company benefited from structural divergence in the global MLCC market and the accelerating trend toward silver reduction in photovoltaics, delivering significant performance growth during the reporting period. However, operating cash flow turned negative due to inventory buildup and capacity expansion investments. During the reporting period, the company achieved operating revenue of 890 million yuan, up 71.60% year on year; net profit attributable to shareholders of 136 million yuan, up 28.50%; and non-GAAP net profit of 129 million yuan, up 31.09%. Net cash flow from operating activities was negative 49.60 million yuan, swinging from a net inflow of 121 million yuan in the same period last year, mainly due to increased raw material purchases and employee compensation payments resulting from expanded production scale. Total assets reached 2.762 billion yuan, up 21.97% from the end of the previous year. Nickel-based products, as key materials for MLCC internal electrodes, benefited from the shift of mid-to-high capacitance consumer-grade MLCC production capacity to mainland China and Taiwan, with both sales volume and revenue growing. Copper-based products closely tracked the demand for reduced silver content in photovoltaic cells, with sales volume surging more than twofold year on year. Operating costs rose 83.42% year on year. Financial expenses surged 2,118.37% due to foreign exchange losses and increased borrowing interest. R&D expenses rose 37.01% year on year to 31.69 million yuan. Inventory increased sharply by 63.63% to 501 million yuan, warranting attention to impairment risks and capital occupation pressure.

On the afternoon of August 21, the MLCC concept rebounded in volatile trading, with Sinocera Materials rising more than 10%, and Sidike, Torch Electron, Boqian New Materials, Three-Circle Group, Fenghua Advanced Technology and other stocks among the top gainers. Behind the market action is the sustained price increase in the MLCC spot market that began in June 2026. As of August 2026, spot prices for ordinary standard products have risen more than 20%, while high-capacitance products such as 10 microfarad and 20 microfarad types used in AI servers have seen average increases of 60% to 80%, and some special models have doubled in price. Overseas leaders' earnings further confirm incremental AI computing demand. Murata's revenue in the second quarter of 2026 was 502.3 billion yen, up 20.7% year on year, and operating profit was 98.85 billion yen, up 59.8% year on year, with both revenue and profit setting record highs for a second quarter. Its MLCC business revenue was 282.508 billion yen, up 30% year on year, with orders in hand up 49.4% quarter on quarter and new orders up 85.5% year on year. Murata raised its full-year revenue guidance for fiscal 2026 to 2.11 trillion yen, an upward revision of 7.7% from its previous forecast, and added 80 billion yen specifically for expanding server MLCC production capacity. Samsung Electro-Mechanics reported second-quarter revenue of about 3.46 trillion won, up 24.2% year on year and a record quarterly high, with operating profit of 440.4 billion won, up 106.7% year on year. Institutions broadly expect this cycle to persist. Sealand Securities believes the shortage is spreading to consumer products, and the supply-demand gap for high-capacitance MLCCs may widen further in 2027. GF Securities notes that the current MLCC industry cycle is still in the early stage of an upcycle, and there may still be considerable room for price and profit elasticity to play out.

Sentiment in the MLCC supply chain continues to rise, with upstream material sales growing rapidly and multiple companies announcing expansion plans. Sinocera's half-year report shows that, benefiting from downstream demand recovery and growth in emerging areas such as AI servers and automotive electronics, the company's sales of MLCC dielectric powders and electronic pastes increased quickly. Jiemei Technology's release film business has seen a significant sales jump since March this year, with volumes more than doubling year-on-year, and it expects supply to fall short of demand through the first half of next year. Sinocera announced that, effective July 27, 2026, it will raise the selling price of zirconia powder by approximately 10% to 40%. Hongyuan Electronics plans to raise no more than 300 million yuan for a technological transformation project to industrialize multilayer ceramic capacitors and adjustable capacitors, while Boqian New Materials intends to invest about 202 million yuan in a nickel powder expansion project.