China Galaxy Securities: The price increase trend of electronic fabrics is strong, focusing on leading companies with excellent mid-term reports.

China Galaxy Securities released a research report stating that the special fiberglass products are experiencing a strong positive trend, coupled with a slow release of supply-side capacity. It is expected that the short-term demand-supply shortage for electronic fabrics will continue, and prices are likely to rise, indicating that fiberglass companies with relevant capacity layouts are expected to see earnings increase. The cement industry's supply-demand contradictions are prominent and require continued policy support to accelerate capacity clearance in the industry. The overseas cement market has a promising development outlook, with demand and prices outperforming the domestic cement market. Cement companies with advantages in overseas capacity layouts are likely to benefit, with their overseas business expected to support corporate performance. Urban renewal will drive demand for building materials in the old renovation and repair markets, while consumer upgrades will boost demand for high-quality green building materials. Leading companies with advantages in channel layouts and brand strength are expected to continue consolidating their market positions. Expectations for terminal demand improvement are weak, and "anti-involution" is likely to accelerate the optimization of the glass supply side. The main points from China Galaxy Securities are as follows: Fiberglass: Weak market for roving with price pressure, strong upward trend in electronic yarn prices Regarding roving, supply in July increased only slightly, and inventory rose marginally, but the overall situation is controllable; the release of rigid demand was average, with wind power orders not meeting expectations, and shipments of thermosetting products decreased, while thermoplastic shipments remained stable. In a context of weak supply-demand dynamics, July roving companies prices fell compared to previous periods. Looking ahead, the short-term market is expected to remain tepid, with increased wait-and-see sentiment in the market, and it is predicted that roving prices will likely operate weakly and steadily in August. For electronic yarn, at the beginning of July, prices continued to rise significantly, with limited supply increases. Downstream CCL manufacturers maintained a full order book that month, and high-end product demand saw some growth, maintaining an overall state of supply shortage in the electronic yarn/fabric market. Looking ahead, companies are currently in a zero-inventory state, combined with their production capacity planning, supply is expected to remain tight in the short term, and the upward price trend is likely to continue. Cement: Weak demand in off-peak season, highlighting supply pressure, low prices continuing to weaken In July, the cement market saw seasonally low demand. The national clinker line suspension rate was lower than in June, resulting in noticeable industry supply pressure, and inventories continued to rise. The national average cement price overall showed a declining trend, with prices at historical lows. Moving forward, August will remain in the traditional off-peak season, and demand is expected to continue being weak. Supply and inventory pressures remain significant, and cement prices are predicted to continue declining; with the arrival of the "Golden September and Silver October," demand is expected to seasonally improve, but its effect on price support may be limited, and the price improvement is not expected to be significant. Consumer building materials: Short-term home decoration demand under pressure, leading value highlighted in the era of stock In the first half of 2026, retail sales of construction and decoration materials fell by 8.8% year-on-year, a decline that widened by 0.4 percentage points compared to January to May, with June's retail sales alone down 10.5% year-on-year, but up 14.2% month-on-month. The downturn in real estate sales has suppressed the demand growth for home decoration-related building materials. Looking ahead, the continued rollout of medium- to long-term urban renewal strategies will release demand for repairs and renovations, and the promotion of "good housing" construction standards will enhance the market penetration rate of high-quality green building materials. Leading companies with product quality advantages and environmentally friendly production technology are expected to benefit. In addition, current product price pressures, coupled with raw material cost pressures, are continuously squeezing the profits of small and medium-sized enterprises, which may accelerate industry clearance, with market concentration gradually shifting towards leading companies. Float Glass: Weak demand coupled with high inventory in companies, prices continue to hit lows In July, high temperatures and heavy rainfall affected float glass demand, resulting in insufficient improvements in orders from downstream processing plants, with overall transactions remaining weak and production and sales unable to achieve balance. Monthly production capacity decreased compared to the previous month, while company inventories remain high and stable, putting significant pressure on de-stocking; July float glass prices continued to hit lows. Looking ahead, terminal demand in real estate is shrinking, and combined with the seasonal lull in August, short-term demand is expected to remain weak. Under the pressure of high inventory, prices are predicted to further decline in August, although the rate of decline may narrow. Risk Alerts: Risks of significant fluctuations in raw material prices; risks of downstream demand not meeting expectations; risks of new industry capacity exceeding expectations; risks of policy implementation not meeting expectations.