[Weekly View 0726] Focus on the Pace and Magnitude of Electronic Cloth Price Hikes; Low-Position Consumer Building Materials Benefit from 'Rebalancing' Strategy

English summary

Focus on the pace and magnitude of electronic cloth price hikes. Recently, the electronic cloth sector has adjusted following the tech sector's pullback, but the upward industry trend of electronic cloth prosperity has not changed. Pay attention to allocation opportunities after electronic cloth falls. As August approaches, close to the next price-hike window, the current supply-demand pattern of electronic cloth remains tight. For mid-to-high-end products, D and E series fine yarn and cloth are in short supply, while product structure adjustments have reduced supply of traditional electronic yarn and cloth, continuously optimizing the supply-demand landscape. It is expected that electronic cloth will continue its price increase trend in August. International Composites released its 2026 H1 performance forecast, expecting attributable net profit of RMB 580-680 million for 26H1, up 151%-194% YoY. As electronic cloth prices continue to rise, the earnings elasticity of electronic cloth companies is expected to be prominent for the full year 2026. Weak property market reality intensifies expectations for policy reinforcement; focus on the upward elasticity of consumer building materials under rebalancing expectations. ...