Higher prices for copper-clad laminate (CCL), a base material for circuit boards, are lifting margins in Nan Ya Plastics’ CCL business faster than UBS expected. Based on Q3 results, UBS estimates that each $1 increase in Nan Ya’s average CCL selling price translates into about $0.70 in additional operating profit per sheet. The bank raised its Q4 2026 CCL operating margin forecast to 39% from 25% and its 2027 forecast to 44% from 30%. It points to Nan Ya’s vertical integration across resin, glass fabric and copper foil as a source of operating leverage. For 2027, UBS assumes a smaller gain of $0.60 in operating profit per sheet for every $1 price increase, factoring in higher costs as AI-grade CCL production ramps up.