ABF Substrate Supply-Demand Gap Widens, Expected to Reach 21%-34% in 2027

Century Digital Plunges 30% After Massive IPO Surge

On the morning of September 23, Century Digital (920229) opened with a "30cm" limit-down, hitting the daily decline cap on the Beijing Stock Exchange. By midday close, the stock was trading at 92.4 yuan per share, down 30%.

The company, headquartered in the Zhengzhou High-Tech Industrial Development Zone, is a high-tech enterprise specializing in the R&D, manufacturing, sales, and service of wide-format printers and related consumables.

Just one day earlier, on September 22, the stock had made its debut on the Beijing Stock Exchange at an IPO price of 15.67 yuan per share. It opened with a gain of 288.64% and closed up 742%, with an intraday peak exceeding 800% at 150 yuan per share. Based on yesterday's high, some investors have already lost nearly 39% in two days.

Broader Weakness in Newly Listed Stocks

C-Zhongsu, which also debuted yesterday, performed poorly today, falling over 26% by midday. Recent volatility in newly listed stocks has been notable, with C-Shengu serving as a prime example: it surged nearly 178% on its second trading day, only to plunge nearly 35% on the third.

ABF Substrate: A Critical Material for the AI Era

According to the latest research from SemiAnalysis, the total production capacity of six major ABF substrate suppliers has been fully booked through 2026. Overall lead times have nearly doubled compared to early 2025, when they stood at approximately 6 to 8 months. Market research institutions predict a supply gap of roughly 8% to 10% in the second half of 2026, widening to 21% to 34% by 2027.

Huafu Securities notes that ABF substrates have become a key material in the AI era. Because most chips have high wiring density while PCBs do not, chips cannot be directly interconnected with PCBs, making substrates an essential "bridge" product. Insulating buildup film is an ultra-thin solid insulating film material with low dielectric constant and low dielectric loss. It is used to construct high-performance packaging substrates through layer-by-layer hot pressing, providing interlayer and inter-line insulation support and physical protection for precision circuits on the substrate.

ABF Substrate Concept Stocks in Focus

Several institutions have recently referenced ABF substrates in research reports on companies such as Shennan Circuits, Lotus Holding, and Fastprint Technology.

Shennan Circuits: SPDB International estimates that Shennan Circuits' full-year ABF-related revenue will exceed 600 million yuan in 2026, with a higher contribution in the second half. The firm believes that a significant increase in packaging substrate gross margins signals a structural change in the segment's profitability model. Future growth will be driven by sustained high utilization of BT substrates and volume ramp-up of ABF customers. It recommends closely tracking ABF revenue realization and breakeven progress in the second half.

Lotus Holding: Guosheng Securities states that in the short term,餐饮 recovery and consumption回暖 are driving demand for condiments. Leveraging its leading position in MSG, new product launches such as Songrong Fresh, and deepened online and offline channels, Lotus Holding's traditional core business has strong growth momentum. In the long term, computing power business will boost revenue as intelligent computing networks improve and AI demand surges, while semiconductor materials entering the ABF-like film segment open up growth potential.

Fastprint Technology: According to Kaiyuan Securities, Fastprint's ABF substrate project is still in the capacity ramp-up phase, with depreciation, labor, and other expenses remaining high. The segment has not yet achieved profitability, but overall yield rates continue to improve. Customer qualification and sample delivery are progressing as planned, with sample order volumes growing significantly year-over-year.

Stock Performance of ABF Substrate Concept Stocks

Since August, Huazheng New Materials has surged nearly 110%, ranking first among ABF substrate concept stocks. Other notable gainers include Zhongjing Electronics, Hongchang Electronics, and Fastprint Technology, all up over 60%. On the morning of September 23, several ABF substrate concept stocks continued to rally, with Lotus Holding approaching the daily limit and stocks such as Fastprint Technology and Shennan Circuits rising over 4%.