China Post Securities: E-cloth AI industry trends accelerate focus on opportunities for China's Jushi (600176.SH) to enter the industrial chain

The Zhitong Finance App learned that China Post Securities released a research report saying that the recent expansion of production by core players in the glass fiber electronic cloth industry has accelerated. China Materials announced an increase of 3,500 trillion yuan of low dielectric cloth production capacity, and an additional 24 million meters of ultra-low loss and low dielectric cloth production capacity. China Jushi China Jubao said that the development of special electronic cloth series products is progressing actively and in an orderly manner, and downstream related certification is also being accelerated. Considering China's ability to control costs on a large scale and has a good foundation of cooperation with downstream CCL manufacturers, it is determined that in the future, Jushi will enter the industrial chain and obtain a certain share. Follow: China Jushi (600176.SH), Sinoma Technology (002080.SZ).

The main views of China Post Securities are as follows:

Cement: On July 1, the Cement Association issued a policy document in response to anti-internal circulation. The judgment will promote better implementation of policies to limit overproduction. Looking at the medium term, the cement industry's production capacity is expected to continue to decline under the policy of limiting overproduction, and the capacity utilization rate will increase dramatically. Currently, the cement industry is at low demand and low prices in the off-season, judging that the industry is expected to gradually increase prices after demand recovers in August. Focus: Conch Cement (600585.SH,00914), Huaxin Cement (600801.SH,06655).

Glass: The demand side of the industry showed a continuous downward trend for 25 years under the influence of real estate. The demand performance in the June-August off-season was fair, but there is still a contradiction between supply and demand. On the supply side, considering that most enterprises in the float glass industry can meet environmental requirements, it is determined that the anti-roll policy will not result in a one-size-fits-all production capacity, but it will still raise environmental requirements and costs, and accelerate the industry's cold repair progress. Follow: Kibing Group (601636.SH).

Glass fiber: The demand for traditional alkali-free coarse sand is lackluster, and the segmented sector is showing a boom. The industry was driven by the demand boom in the AI industry chain this year. The industry's low dielectric products ushered in a sharp rise in volume and price. Currently, the first generation, second generation, and third generation (Q cloth) product structure upgrades are clear. Industry demand is expected to explode along with AI, and I am optimistic that industry demand will continue to rise sharply in volume and price. China Jushi (600176.SH), Sinoma Technology (002080.SZ).

Risk warning: There is a downside risk that the implementation of anti-domestic policies falls short of expectations, and demand for real estate and infrastructure exceeds expectations.