HK Stock Market Move | CNBM (03323) rose nearly 3% as electronic cloth prices have been raised multiple times this year. Institutions point out that there is still a gap in high-end electronic cloth.

CNBM (03323) rose nearly 3%, as of press time, it rose 2.33% to HK$5.27, with a turnover of HK$115 million. On the news front, according to Sublime China Information statistics, after the price increase of 7628 electronic cloth, the price is 7.3-7.5 yuan/meter in June, a year-on-year increase of over 70%. It is worth noting that the fifth round of price increases for electronic cloth this year has been implemented. East Money Information Securities believes that the current situation of electronic cloth continues to be in short supply, with the demand for high-end products in the D and E series of fine yarns and fabrics exceeding supply. The adjustment of product structure has reduced the supply of traditional electronic yarns and fabrics, optimizing the supply and demand situation of electronic cloth. There is still an expectation of price increases in the future market for electronic cloth, and attention should be given to the performance elasticity brought by the price increase of electronic cloth. It is reported that China Jushi Co., Ltd., a subsidiary of CNBM, is the world's largest producer of electronic cloth (electronic grade glass fiber cloth). Currently, China Jushi Co., Ltd. has a market share of 23% in the global electronic glass fiber market, with an annual production of approximately 1.3 billion meters of electronic cloth. CMSC has previously stated that the demand for AI electronic cloth is growing rapidly, and the release of high-end supply is limited, leading to a long-term structural gap. On the demand side, the upgrading of electronic yarn/fabric demand is primarily driven by the dual forces of AI computing power and high-frequency communication. On the supply side, the core bottleneck of high-end electronic cloth lies in the delivery cycle of high-end looms (such as Toyota JAT910), which can take up to 18-24 months, making it difficult to break through in the short term, and the gap in high-end electronic cloth still exists.