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The high price of roving is supported and continues to be optimistic about the continuity of the industry boom. The price of glass fiber roving is stable this week, and the trading is stable and weak, which has an impact on the transportation and logistics in some regions; Inventory rose slightly at the end of March, but it is still at the bottom of history. The subsequent demand increment focuses on the increase of export, wind power and new energy vehicle penetration. It is expected to be flexible in 22 years and grow in the long term. There is no change in supply planning this week, and there is no change in production line status this week. In the past 22 years, the new supply was relatively limited, and attention should be paid to the continuous guidance of the association’s orderly expansion of new production capacity. We are optimistic about the continuity of the high boom and the weakening of cyclical fluctuations in the glass fiber industry, the limited supply increment, the demand focus, and the improvement of overseas transportation and repair rhythm and wind power demand; At the same time, pay close attention to: 1) the impact of changes in medium and long-term capacity planning of enterprises under the state of high profitability on market expectations; 2) the disturbance caused by the tightening of energy consumption indicators on the landing of new capacity.
The price of electronic yarn and electronic cloth has stabilized. This week, the prices of electronic yarn and electronic cloth were stable, and the impact kinetic energy of new supply was gradually digested; We are optimistic about the follow-up demand support, and the probability of further sharp decline of follow-up prices may be small China Jushi Co.Ltd(600176) electronic yarn and electronic thick cloth production capacity continued to expand, and the share increased steadily Grace Fabric Technology Co.Ltd(603256) high end electronic cloth technology has advantages (the first echelon in the world), gradually realize self supply of high-end electronic yarn, and pay attention to the production rhythm and operation effect of Huangshi gauze project.
The industry cycle attribute may be gradually weakened, focusing on China Jushi Co.Ltd(600176) etc. The valuation of the main listed companies in the glass fiber sector is in the historical bottom range (the PE of the main listed traditional glass fiber enterprises in 22 years is about 10x), and the medium and long-term configuration cost performance is good. Recently, major glass fiber enterprises have successively disclosed their annual reports, and their performance supports the high prosperity of the glass fiber industry, which has good sustainability. New supply planning is limited and it is more difficult to obtain energy consumption indicators. Demand grows, roving cycle fluctuation weakens, or there is a certain expectation difference. We suggest that we pay attention to the opportunity of valuation reshaping under the weakening of industry cycle, continue to recommend China Jushi Co.Ltd(600176) , which has a stable global leading position, firmly promotes cost reduction / scale expansion / high-end product structure, and has medium and long-term growth, Sinoma Science & Technology Co.Ltd(002080) , which has strong glass fiber business strength, improved diaphragm benefits / gradually improved voice, and has medium and long-term growth of blades, with obvious technical advantages, and Huangshi gauze project is gradually put into operation Grace Fabric Technology Co.Ltd(603256) (jointly covered with the electronic team) with the gradual emergence of the growth inflection point. In addition, Jiangsu Changhai Composite Materials Co.Ltd(300196) (jointly covered with the chemical team) and Shandong Fiberglass Group Co.Ltd(605006) which are worth looking forward to growth are also suggested to focus on.
Risk tip: the new production capacity of glass fiber exceeds the expectation, the new production capacity planning exceeds the expectation, and the downstream demand is lower than the expectation (wind power, automobile, electronics, etc.).
