GF Securities: Electronic textiles are in a state of continued high prosperity, and the industrialization of glass substrates is speeding up.

GF SEC released a research report stating that the growth in demand for AI is leading to an upgrade in the demand structure for electronic fabrics and a shortage of weaving machine capacity, resulting in a supply-demand gap for special electronic fabrics and tight supply-demand for regular electronic fabrics. Since 2026, the prices of electronic fabrics have been increasing month by month (7628 thick fabrics increased by 0.2/0.5/0.5/0.5 yuan/meter from January to April, with even larger increases for 1080 thin fabrics). Currently, leading companies have low inventory levels, and prices may continue to rise in the future. Considering Toyota's slight expansion plans for weaving machines, the industry is expected to face tight supply-demand conditions in 2026 and 2027. Additionally, with limited new capacity for electronic yarn and fabrics and the implementation of CoPoS by TSMC starting in April 2026, the prosperity of electronic yarn/fabrics is expected to last for a long time. GF SEC's main points are as follows: Consumer Building Materials Prices bottom out before volume, focus on leading opportunities. The long-term demand stability of consumer building materials, continuous improvement in industry concentration, and a good competitive landscape provide ample room for long-term growth for high-quality leading companies. The downstream real estate market is still finding its bottom, waiting for sales to stabilize and improve. Key leading companies have strong operational resilience. Companies of interest include SKSHU Paint, Dehua TB New Decoration Material, Higold Group, Beijing Oriental Yuhong Waterproof Technology, CHINA LESSO, Beijing New Building Materials Public, Zhejiang Weixing New Building Materials, Guangdong Dongpeng Holdings, MarcoPolo Holdings, Guangdong KinLong Hardware Products, Arrow Home Group, Monalisa Group, Keshun Waterproof Technologies, Jiangxi GETO New Materials Corporation, Wangli Security&Surveillance Product. Cement This week, the national cement market prices fell by 1.4% compared to the previous week. According to China Cement Net, as of April 24, 2026, the national cement price including tax was 328 yuan/ton, a decrease of -4.67 yuan/ton compared to the previous week and a decrease of -62.67 yuan/ton year-on-year. The national cement shipment rate was 44.53%, an increase of 0.67% compared to the previous week but a decrease of 2.87% year-on-year. With cement prices in some regions rebounding to the bottom range, it is expected that prices will continue to fluctuate slightly. The industry valuation is currently at historical lows. Companies of interest include Huaxin Building Materials Group (A, H), Anhui Conch Cement (A, H), Gansu Shangfeng Cement, CNBM, CR BLDG MAT TEC, Guangdong Tapai Group. Glass Float glass has high inventory pressure; trading in photovoltaic glass is stable. According to Sublime China Information, as of April 23, 2026, the average price of domestic float glass was 1156 yuan/ton, a decrease of 1.5% compared to the previous week and a decrease of 13.1% year-on-year. The inventory turnover days were 38.23 days, an increase of 0.2 days compared to the previous period. The mainstream order price for 2.0mm coated panels was 9.0-9.5 yuan/square meter, a decrease of 2.63% week-on-week. Leading glass companies are undervalued. Companies of interest include Zhuzhou Kibing Group, XINYI GLASS, XINYI SOLAR, Flat Glass Group (A), FLAT GLASS (H), CSG Holding Co., Ltd., Shandong Pharmaceutical Glass. Glass Fiber/Carbon-based Composites Coarse yarn market prices remain stable, while the electronic yarn market is temporarily stable in terms of shipments. According to Sublime China Information, as of April 23, 2026, the mainstream transaction price for domestic 2400tex winding direct yarn was between 3600-3900 yuan/ton, unchanged from the previous week and a decrease of 1.10% year-on-year. The mainstream price for G75 electronic yarn was between 11800-12500 yuan/ton, remaining stable. Leading companies in glass fiber/carbon-based composites are significantly ahead, and the prosperity of electronic fabrics is expected to continue. Companies of interest include China Jushi Co., Ltd, Sinoma Science & Technology, Grace Fabric Technology, Chongqing Polycomp International Corporation, Jiangsu Changhai Composite Materials, among others. Risk Warning: Risks include continued macroeconomic downturn, major fluctuations in policies related to currency, real estate, etc., unexpected increase in new production capacity in the industry, and rapid rise in raw material costs, among others.