Shares of CNBM (03323) rose more than 8% during the trading session. As of the time of writing, the stock is up 6.50%, currently trading at HK$5.25, with a turnover of HK$222 million.
According to reports, due to rising manufacturing costs and market supply shortages, major electronic fabric manufacturer Fu Chiao Industrial has recently issued a price increase notice to its customers, announcing a 15% to 30% price hike for its electronic fabric products. The new prices will take effect from July 1, 2026. China Post Securities believes that, based on the current tight supply-demand situation for electronic fabric, the price increase trend is expected to continue until the end of the year, with the potential upside of this round of price hikes likely exceeding expectations.
It is reported that CNBM holds controlling stakes in China Jushi Co., Ltd. and Sinoma Science & Technology Co., Ltd., covering both the general and high-end electronic fabric market segments, positioning it to fully benefit from the current industry-wide supply shortage. Citi recently noted that although CNBM's business exposure in electronic fabric and new materials is continuously increasing, its stock price has not yet fully reflected the valuation re-rating of these related assets. The bank has included CNBM in its 90-day positive catalyst watch list, reiterating its "Buy" rating and maintaining a target price of HK$7.30.
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