Sou Hu Cai Jing·2026-02-11 23:27Core Insights - The electronic fabric industry is experiencing intense competition, with companies like Honghe Technology showing high profitability but also extremely high valuations, raising questions about market expectations and potential bubbles [1][6]. Group 1: Industry Overview - Electronic fabric, or electronic-grade glass fiber cloth, is a core material for manufacturing copper-clad laminates, which serve as the foundation for printed circuit boards (PCBs) [3]. - The price of a specific electronic fabric model, "7628," has increased from 4.15 yuan to 4.75 yuan per meter since October last year, driven by high demand from downstream AI servers and high-speed network equipment [3]. - The demand for low-dielectric and low-expansion fabrics is increasing as they provide better signal transmission and lower losses compared to traditional electronic fabrics [3]. Group 2: Company Profiles - Honghe Technology is a leader in high-end electronic fabric, capable of mass-producing 4-micron ultra-thin electronic fabric, which is crucial for chip substrates [5][6]. - Honghe Technology has achieved a sales net profit margin of 16.28% in the first three quarters of 2025, ranking second among four companies, and has a return on equity (ROE) of 9.29% [6]. - China Jushi is the largest producer of glass fiber globally, with a strategy focused on cost control and global presence, achieving a sales net profit margin of 19.22% [10]. - China Jushi's production capacity is set to reach 1.3 billion meters per year by 2025, enhancing its cost advantages [10]. - Zhongcai Technology adopts a strategy of full-category coverage and deep binding with major customers, achieving a total asset turnover rate of 0.348 times, the highest among the four companies [8]. - International Composite Materials holds about 35% of the domestic low-dielectric electronic fabric market but has the lowest sales net profit margin of 5.25% among the four companies [16]. Group 3: Competitive Dynamics - The competition among these companies is characterized by different strategies: Honghe Technology focuses on high-end niche markets, Zhongcai Technology emphasizes stable supply chains, China Jushi leverages scale for cost advantages, and International Composite Materials aims for breakthroughs in specialized materials [17]. - The rising prices of electronic fabrics signal the beginning of a larger narrative about which company can best meet the high-end product demands of AI and embed itself in the supply chains of major players like NVIDIA and AMD [17].