Huaxi Securities: High-end lithium batteries + PCB products increase in volume, copper foil industry ushers in a period of quantity and profit growth.

According to the research report of Huaxi Securities, copper foil is a clearly heavy asset industry, and the core raw material copper price is relatively high, leading to significant cash flow occupation. Therefore, the scale of new production capacity in the early stage is limited; under the trend of rapid growth in demand for power and energy storage batteries, the capacity supply is relatively tight, and processing fees are trending upwards. In addition, driven by the rapid development of AI technology, PCB copper foil is expected to achieve large-scale production, which will further squeeze the capacity of lithium battery copper foil. Furthermore, with high product performance requirements and complex processes, there is considerable room for processing fees, which will drive the improvement of suppliers' profitability.