Electronic Fabric Super Cycle Begins, China Jushi (600176) Ushers in the Best Window for Davis Double-Kill

English summary

In 2026, the explosive growth of AI computing infrastructure is pushing electronic fabric, a basic material that has long been hidden at the top of the industry chain, to the forefront. On July 27, the electronic fabric sector broke out collectively again. In this super cycle driven by the supply-demand "scissors gap," China Jushi (600176), the global glass fiber leader, is entering a golden window of earnings and valuation resonance, thanks to its world's largest production capacity, cost advantages from full industry chain integration, and strategic courage to expand capacity against the trend.

I. Industry logic: The supply-demand gap continues to widen, and the price increase cycle is far from over. The current electronic fabric market is in an unprecedented shortage. As of early July, the mainstream transaction price of ordinary electronic yarn G75 reported 16,500-17,000 yuan/ton, a monthly increase of 17%; 7628 electronic fabric prices rose to 8.5-8.7 yuan/meter, a monthly increase of 16%. …