SINOLINK SECURITIES·2025-06-29 14:45Investment Rating - The report maintains a positive outlook on the AI electronic cloth sector, particularly highlighting the potential of quartz cloth for AI servers due to its superior dielectric properties [2][14]. Core Insights - The report emphasizes the increasing application of quartz cloth in AI servers, which is expected to meet the rising demands for dielectric performance [2][14]. - It discusses the acquisition of Merck's global surface solutions business by Global New Materials International, indicating a strategic move to enhance its market position and operational synergies [3][15]. - The report highlights the growing interest in the African market for construction materials, particularly focusing on the operational capabilities required for successful market entry [4][16]. Summary by Sections Weekly Discussion - The report notes the strengthening application expectations for quartz cloth in AI servers, citing its lower dielectric constant and loss compared to traditional electronic cloth [2][14]. Market Performance - The report provides insights into the performance of various materials, including cement, glass, and aluminum, indicating a mixed outlook with some sectors facing downward pressure while others show resilience [5][17]. National Subsidy Tracking - It mentions the planned distribution of 138 billion yuan in central funds for old-for-new replacements, which could benefit companies in the building materials sector [6][18]. Important Developments - Key developments include the opening of new factories by Keda Manufacturing in Africa and the acquisition of Merck's business by Global New Materials International, which are expected to enhance operational capabilities and market reach [7][20][21]. Economic Sentiment - The report assesses the economic sentiment across various sectors, noting that while some areas like AI materials maintain high demand, traditional sectors like cement and glass are experiencing pressure [22][23]. Price Changes in Building Materials - It details the price fluctuations in building materials, with cement prices showing a slight decline and glass prices remaining stable despite regional variations [36][49]. Export Statistics - The report includes export statistics for fiberglass products, indicating a decline in both volume and value, which may reflect broader market challenges [71].