Zhongjin: The electronic distribution of new prices is gradually advancing, and the crowding out effect of weaving machines still exists.

CICC report states that, according to Sublime China Information, electronic cloth prices continued to rise at the beginning of April. For example, the mainstream quoted price including tax for Chongqing Polycomp International Corporation's 7628 product reached 6.1-6.3 yuan/meter, an increase of 0.5 yuan/meter compared to last year. Mitsubishi Gas raised prices for its entire range of copper foil substrates, semi-cured sheets/resin substrates, and copper foil resin sheets by 30%. There is still room for price increases in electronic cloth in the future, and the extrusion effect of AI on ordinary cloth weaving machines is still present throughout the year, making it difficult for domestic weaving machines to meet the production needs of the 7628 model required for automotive circuit boards and consumer electronics. In the past few years, export volumes in overseas markets have reached a new high platform, and it is expected that rising energy prices will drive overseas price increases and opportunities for domestic companies to increase their market share. CICC's main points are as follows: Coarse yarns and electronic cloth prices have stabilized after the increase, optimistic about domestic companies' supply capacity in the global energy price rise background. In the domestic market, the mainstream quoted price including tax for 2400tex was between 3550-3800 yuan/ton last week (an increase of 50 yuan), and price increases may be driven by cost increases. There is still room for price increases in electronic cloth: throughout the year, the extrusion effect of AI on ordinary cloth weaving machines is still present, making it difficult for domestic weaving machines to meet the production needs of the 7628 model required for automotive circuit boards and consumer electronics. Currently, the overall inventory level of the electronic cloth industry chain is low. In the overseas market, export volumes have reached a new high platform in the past few years, and it is expected that rising energy prices will drive overseas price increases and opportunities for domestic companies to increase their market share. Recommended stocks include China Jushi Co., Ltd (600176.SH) and Sinoma Science & Technology (002080.SZ). Consumer building materials short-term shipments accelerated, focus on the extent of price increases in the second quarter. Due to the rise in raw materials such as asphalt, emulsions, PVC/PPR/PE, combined with collective price increases in waterproofing, coatings, pipe materials, etc., downstream shipments have accelerated in the short term. In the second quarter, it is recommended to pay attention to the progress of the landing of price increase letters for segmented varieties. It may be easier for consumer-end price increases to land compared to engineering-end price increases. After the concentration of industries increases, the coordination of this round of price increases may be better than earlier rounds. Recommended stocks include SKSHU Paint (603737.SH), Beijing Oriental Yuhong Waterproof Technology (002271.SZ), and Beijing New Building Materials Public (000786.SZ). It is also recommended to pay attention to CHINA LESSO (02128) and Zhejiang Weixing New Building Materials (002372.SZ). Float glass & cement have a slight contraction in domestic supply, overseas profitability can be expected. Last week, the daily melting capacity of float glass was maintained at 145,000 tons/day, a decrease of 6,720 tons/day from the beginning of the year. At present, the loss of petroleum coke system for float glass exceeds 100 yuan/ton, and it is recommended to pay attention to the price rebound opportunities brought by the cold repair. Recommended stocks include XINYI GLASS (00868) and Zhuzhou Kibing Group (601636.SH). Last week, the quoted price of cement including tax decreased by 3 yuan/ton compared to the previous week. The fundamentals are still weak, but optimistic about the industry's supply and demand situation gradually recovering under the slow variables such as limiting overproduction and carbon trading. Recommended stock is Anhui Conch Cement (600585.SH). Risk factors include demand decline exceeding expectations, cost increase exceeding expectations, and price transmission amplitude falling short of expectations.