Shares of CNBM (03323) have risen by more than 6%. At the time of writing, the stock is up 6.03% to HK$4.75, with a turnover of HK$143 million.

Catalysts for the Move

According to reports, surging demand for computing power this year has driven a significant increase in the price of electronic cloth, a key material. By early June, commonly used specifications of electronic cloth had already undergone five rounds of price hikes within the year, with the average price reaching 7.4 yuan per meter. This represents a 100% increase compared to the low point in the third quarter of last year.

Analyst Perspective and Company Positioning

Previous research notes have highlighted CNBM's leading position in the glass fiber sector. The company holds significant stakes in Sinoma Science & Technology Co., Ltd. (60.24%) and China Jushi Co., Ltd. (29.22%).

Analysts have pointed out that the company's new materials segments, including glass fiber, carbon fiber, and lithium battery separators, are demonstrating strong growth momentum. Furthermore, its engineering and technical services segment is showing impressive performance in overseas markets.

The view is that by the end of the 14th Five-Year Plan period, the company is poised to further optimize and enhance its asset quality, laying a solid foundation for a strong start to the 15th Five-Year Plan. With glass fiber and carbon fiber recently entering a new cycle of price increases, there is optimism that new materials and overseas expansion will drive the company into a new phase of growth.