[Caitong Construction & Building Materials] #China Jushi Research Key Points 20260730

English summary

1. Price increase situation: In July, 7628 fabric price rose RMB 1.2/meter. August's increase is expected to be higher than July's, with the industry generally expecting around RMB 1.5/meter. After the increase, ordinary electronic fabric prices will exceed RMB 10. From now to Q2 next year, there is no new loom capacity, so the industry still has a certain supply-demand gap, supporting overall prices. Currently, product inventory levels are extremely low, and supply is generally tight. 2. Capacity situation: The company's existing production includes 960 million meters at the Tongxiang headquarters and 390 million meters at the Huai'an Phase I project, totaling 1.45 billion meters. This year's sales are expected to be 1.1 billion meters, and next year is expected to add 200-300 million meters. The only new capacity in electronic fabric direction is the 50,000-ton electronic yarn capacity in Huai'an Phase II; currently, there are no other new electronic yarn tank furnace plans, and future expansion will depend on market trends. 3. Loom issue: Orders have been locked with Toyota to cover future expansion needs for various electronic fabrics; ...