Citigroup: Electronic cloth and other components in the printed circuit board industry chain have more profit elasticity and are optimistic about China's giant stone.

Citi said that the upgrade of artificial intelligence PCB is increasingly becoming a story of upstream materials; among them, CCL and electronic fabrics have better profit elasticity. Chinese materials benefit more from Chinese giant stones. Analysts such as Anna Wang pointed out in a report that the demand for artificial intelligence servers not only drives the growth in quantity, but also brings structural upgrades in PCB layers, CCL material grades, copper foils, and glass fiber fabric specifications. In terms of capacity growth, PCB links are the fastest, followed by CCL and electronic fabrics, but pricing capabilities are opposite. PCB manufacturers can basically pass on the cost increase of AI-related materials, but the profit margin has limited room for improvement, as price hikes are mainly cost pass-through. CCL and electronic fabrics links are more restricted in supply, and price increases are more direct.