Huatai Securities: Focus on companies with a complete product matrix layout of special electronic fabrics and rapid capacity expansion.

Huatai Securities pointed out that electronic cloth is a key strengthening material in the PCB-CCL industry chain, and the trend of AI industry is driving the upgrading of high-end PCB and its related upstream materials. There are three major product upgrade trends in special electronic cloth. The market is concerned that the large-scale expansion of leading companies will worsen the supply of special electronic cloth, but after calculation, Huatai Securities believes that by 2025, all types of special electronic cloth products will be in a state of supply shortage, with a shortage of supply of LowDK-2 and LowCTE continuing until 2026. It is also expected that in 2026, Q cloth is expected to usher in a year of mass production. Pay attention to companies with a full product matrix layout and rapid capacity expansion.