Zhi Tong Cai Jing·2026-02-12 05:53Core Viewpoint - The report from Zhongtai Securities indicates that electronic fabric prices have experienced two rapid increases since early 2026, reflecting a tight supply situation in the industry, particularly in the weaving segment [1][2]. Group 1: Price Trends - Electronic fabric prices have risen significantly during the traditional off-season, with Linzhou Guangyuan's 7628 fabric price increasing by 0.55 yuan to 5.40 yuan (+11%) and International Composite's 7628 fabric price rising by 0.55 yuan to 5.20 yuan (+12%) [1]. - The price increase trend has accelerated, confirming a supply-tight situation in the market [1]. Group 2: Supply-Demand Dynamics - The core supply issue lies in the midstream weaving segment, with a projected supply-demand balance for electronic yarn in 2026 showing supply growth of 6.1% versus demand growth of 6.6%, establishing a basis for price increases [2]. - The demand for low-Dk and low-CTE specialty thin fabrics driven by AI applications is increasing, leading to a thinner product structure across the industry and a decline in weaving efficiency [3]. Group 3: Weaving Equipment Shortage - The shortage of weaving machines is expected to extend the supply gap in the industry, with Japan's Toyota being a major supplier of electronic fabric weaving machines, which have a long delivery cycle [4]. - The supply gap for weaving machines is estimated to reach 6.1% in 2026 and potentially 10.6% in 2027, indicating a persistent supply-demand imbalance [5]. Group 4: Investment Recommendations - The report suggests focusing on leading companies with production scale and cost advantages, such as China Jushi (600176), which is expected to maintain a strong performance during the price increase cycle due to its significant capacity [6]. - Other recommended companies include Zhongcai Technology (002080), International Composite (301526), and Honghe Technology (603256), which have both traditional electronic fabric performance and a presence in specialty electronic fabrics [7].