China Merchants Securities says the electronic-grade fiberglass fabric market is
in a super upcycle driven by an AI compute demand surge and orderly supply. The
market has moved from a "supply shortfall → price rises" phase to one where the
magnitude and duration of price gains will determine company EPS and valuations;
the firm sees remaining upside but expects the sector's driver to shift from
valuation expansion to earnings growth, flagging earnings realization as the key
focus. This fiberglass rally was driven by AI compute demand and capacity
conversion by leading producers, with mid-/high-end and conventional electronic
fabrics rising in tandem.
