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Today, I saw Huatai discussing information about electronic fabrics, so I specifically went to learn more about it, as I was previously unaware; it turns out that electronic fabrics are key enhancement materials in the PCB-CCL industry chain. The trend of AI industries is driving the upgrade of high-end PCBs and their related upstream materials, with three major product upgrade trends for special electronic fabrics. I threw this question to DS to help collect relevant companies, and he provided a table, which is the one below for everyone’s reference.
There are several core logic points in the industry; the demand-side driving force,
the rapid development of industries such as AI servers and high-speed network communication has placed higher demands on PCBs (Printed Circuit Boards), such as larger sizes, more layers, and lower signal transmission losses. As a core enhancement material for PCBs, electronic fabrics, especially special electronic fabrics that meet the requirements of low dielectric constant (Low-Dk) and low thermal expansion coefficient (Low-CTE), are experiencing explosive demand.
Supply-side pattern; currently, the high-end special electronic fabric market is still dominated by overseas manufacturers, but domestic manufacturers are accelerating technological breakthroughs and capacity construction. Huatai Securities points out that although there are concerns that capacity expansion may lead to intensified competition, calculations show that at least until2026, high-end products such as Low-DK-2 and Low-CTE will still be in short supply. This provides a valuable window of opportunity for domestically leading companies.
Of course, based on the above logic, we must pay attention to the participating nodes, as these are what most of us care about. To put it simply; in the short term, from the second half of this year to2026, we should focus on the existing capacity ramp-up and shipment situation of companies like Honghe Technology and China National Materials Technology. The price fluctuations of products such as the second-generation Low-DK fabric are important indicators to verify the industry’s prosperity.
In the medium to long term, after next year, with technological iterations, the third-generation electronic fabric, quartz fabric (Q fabric) is expected to enter mass production in 2026. At that time, we should pay attention to companies with forward-looking layouts in the quartz fabric field, such as Feilihua and others.
While we focus on opportunities, we must also pay attention to potential situations that may arise at any time. If the demand for terminals such as AI servers slows down, it may affect the demand for special electronic fabrics. If manufacturers expand production too quickly, it may lead to intensified market competition after 2026, affecting product prices and profit margins. The rapid iteration of electronic materials technology requires continuous attention to changes in technological routes. We must consider these factors to gain a more complete understanding of the direction of the entire industry, so as not to stand on the edge of a dangerous wall.
Let’s talk about the market; the Shanghai Composite Index consumed a day today, with several major indices showing divergence, and it may go through fluctuations before the holiday.After the close, the Shanghai Composite Index fell 0.01%; the Shenzhen Component Index rose 0.67%; the ChiNext Index rose 1.58%. The National Day and Mid-Autumn Festival holidays are approaching; those who have not entered the market are observing the direction after the fluctuations.
In terms of trading volume, today the trading volume of the Shanghai and Shenzhen markets was 237 trillion, compared to yesterday’s increase of over 400 billion. Since the sideways fluctuations, the amplitude has been relatively large, but it feels much smaller in recent days. Now it has been in the 3800-3900 range for over 20 days.
We are now very close to the trend; closing with a medium bullish line above the fluctuation platform, a medium bearish line breaking the upward trend, there won’t be much change before the holiday, and we will have to see after the holiday; there will always be a choice of direction. Short-term adjustments are not to be feared; in the medium to long term, it is still an adjustment on the way up, so there is no need to worry.
From the perspective of industry sectors, gaming, power equipment, energy metals, and wind power equipment sectors are leading in gains, while precious metals, shipping ports, jewelry, gas, engineering machinery, and automotive service sectors are leading in losses. The energy storage sector is fluctuating upward, and AI hardware and AI application directions are collectively strengthening, with controllable nuclear fusion concept stocks rising during the session..
Today, the gaming sector surged, as the National Press and Publication Administration announced the approval of 156 games on September 24, including 145 domestic games and 11 imported games, which is indeed a great benefit for the gaming sector.
Major media have been emphasizing since last year that the stock market should move towards a slow bull; you see this sentence: A capital market that allows stockholders to earn steadily over the long term can provide longer-lasting support for the real economy.
This indicates that we are still far from previous expectations; as for what expectations, everyone understands.
In recent days, concepts such as chips and AI in the technology sector have been continuously elevated by funds, and those that have already been highly speculated are still reaching new heights. In a bull market, excessive concentration of funds is not a long-term strategy, so we must pay attention to risks in overheated areas.
During the session, CATL’s market value surpassed that of Kweichow Moutai, and it was previously said that there is a curse; it is said that companies that surpass Moutai usually do not end well. Several companies have surpassed it before, and their conditions were not good in the end; hopefully, Ning Wang and Han Wang will be exceptions.
It must be said that the battery sector has indeed reversed its cycle; including Ganfeng Lithium and Tianqi Lithium have risen significantly in this round. Remember that the previous Morgan Stanley report mentioned that lithium batteries were the first to emerge from the cycle bottom, and this is now being realized. What sector do you think will be next??
NVIDIA is promoting the supply chain to develop microchannel cooling plates, enhancing the expectations for microchannel cooling plate applications, and reinforcing the inflation logic of AIDC liquid cooling. The supply chain pattern may change, bringing opportunities for domestic liquid cooling chain support, including traditional VC manufacturers, liquid cooling module manufacturers, radiator manufacturers, and 3D printing manufacturers are expected to benefit.
There has long been a rumor in the automotive industry about banning fully hidden external door handle designs, and clear information has finally emerged. It has been confirmed that fully hidden door handle designs have safety hazards, and according to safety technical requirements, all car manufacturers must design according to the requirements within 7 months, which means that fully hidden door handles will become history.
Alright, that’s all for today. In fact, opportunities and risks are equal; the opportunities gained here may be the result of your previous misfortunes accumulated; therefore, in whatever you do, do not overexert yourself; let everything happen naturally, and it will be just right. Wishing everyone prosperity and wealth!