--- title: "CITIC Securities 2025 Glass Fiber and Carbon Fiber Investment Strategy: Structural Prosperity Maintained, Profit Recovery Expected" type: "News" locale: "en" url: "https://longbridge.com/en/news/225123279.md" description: "CITIC Securities released a research report indicating that the worst point for the glass fiber industry in 2024 has passed, entering an upward cycle of prosperity. It is expected that the supply and demand pattern of the industry will begin to recover in 2025, with limited downward price space. The demand in high-end markets such as aerospace is improving, and the performance growth of leading enterprises is promising. The demand and prices for glass fiber roving and electronic yarn/fabric both have upward elasticity, with corporate profitability gradually improving, and there is room and elasticity for valuation recovery" datetime: "2025-01-16T02:24:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/225123279.md) - [en](https://longbridge.com/en/news/225123279.md) - [zh-HK](https://longbridge.com/zh-HK/news/225123279.md) generator: "portal-rs" --- # CITIC Securities 2025 Glass Fiber and Carbon Fiber Investment Strategy: Structural Prosperity Maintained, Profit Recovery Expected According to the Zhitong Finance APP, CITIC Securities released a research report stating that the worst point for the glass fiber industry in 2024 has passed, entering an upward cycle of prosperity, with corporate profits gradually recovering. The industry's prosperity is expected to continue to rise in 2025, with demand and prices for high-end products such as roving and electronic yarn/fabric likely to have more upward potential. Leading companies with comprehensive advantages are expected to continue improving their profitability, and there is room and flexibility for valuation increases. In 2024, the overall supply and demand for carbon fiber will still be unbalanced, with prices continuing to be under pressure at the bottom. In 2025, the supply and demand pattern of the industry may begin to recover, with limited downward space for prices. The aerospace and other high-end markets are showing good prospects, and leading companies with high-performance carbon fiber products and market advantages are expected to see performance growth. ## **CITIC Securities' main viewpoints are as follows:** **Glass Fiber Roving: The upward trend is expected to continue, and corporate profit expectations are positive.** In 2024, the supply and demand pattern of the industry will gradually improve, and companies will push for product price recovery, marking the beginning of an upward cycle of industry prosperity. As of Q3 2024, while corporate profits have recovered, they are still at the bottom of the cycle. Looking ahead to 2025, there is limited new production capacity in the industry, and currently, companies in the industry have a high degree of cooperation. Capacity releases may maintain a dynamic balance of overall supply and demand in conjunction with cold repair and technological upgrades. The demand increase for high-end categories such as wind power yarn and thermoplastic short-cut is relatively certain and elastic, and prices may still have upward potential, with the industry's prosperity expected to continue. At the same time, companies will continue to promote cost reduction and efficiency improvement, as well as product structure optimization, with profit improvement expectations continuing to be positive. After experiencing two years of cyclical decline, the current valuation of leading glass fiber companies is at historically low levels. Some companies are also actively promoting share buybacks, increasing holdings, and gradually raising cash dividends, indicating that there is room and flexibility for valuation recovery. **Electronic Yarn/Fabric: The outlook for 2025 is good, with demand and prices having upward elasticity.** In 2024, downstream demand for PCBs and copper-clad laminates will gradually recover. Driven by costs, major copper-clad laminate companies will also drive improvements in upstream electronic yarn/fabric demand and price recovery, leading to the beginning of corporate profit recovery. Looking ahead to 2025, there is currently no large-scale new production capacity for electronic yarn/fabric in the industry; on the demand side, the replacement of old products in automobiles and home appliances, national subsidies for consumer electronics, and the vigorous development of the AI field will continuously boost demand for PCBs and copper-clad laminates, which will strongly drive demand for electronic yarn/fabric. Especially with the rapid development of AI computing power, demand for high-performance PCBs and copper-clad laminates, such as high-frequency and high-speed products, is expected to gradually increase, leading to more demand for ultra-thin and extremely thin electronic fabrics like Low Dk/Df and Low CTE. Overall, with the improvement of industry prosperity, the prices of electronic yarn/fabric products have upward elasticity. Some leading companies are actively promoting the layout of mid-to-high-end electronic yarn/fabric production capacity, and future incremental growth is worth looking forward to. **Carbon Fiber: The supply and demand pattern is expected to begin to recover, with leading advantages in high-end markets.** In 2024, while the overall demand for carbon fiber is recovering, the previous accumulation has led to prominent overcapacity, and product prices continue to be under pressure at the bottom, with most companies in the industry operating at a loss. However, high-performance carbon fiber products used in high-end fields such as aerospace have relatively good prices and profits, and advantageous companies are performing well. Looking ahead to 2025, the pace of new carbon fiber production capacity may slow down, demand is expected to continue improving, and the industry's supply and demand pattern may gradually begin to recover, with very limited downward space for product prices At low price levels, the cost-performance ratio of carbon fiber improves, and its application fields may further expand, especially in high-end areas such as aerospace, where domestic substitution is expected to accelerate. Emerging fields like the low-altitude economy are also expected to contribute incremental growth, highlighting the advantages of leading enterprises in the high-end market. **Investment Strategy:** Looking ahead to 2025, it is recommended to focus on leading fiberglass companies with comprehensive advantages in production costs, product structure, and market layout, as well as global copper-clad laminate leaders expected to make new progress in high-frequency and high-speed copper-clad laminates and electronic fabrics; leading carbon fiber companies with advantages in high-end application markets and high-performance carbon fiber products, as well as enterprises actively promoting high-end capacity construction. Attention is suggested for mid-to-high-end electronic fabric leaders. **Risk Factors:** Significant fluctuations in the macro economy, rising costs of raw materials and fuels, irrational deployment of new production capacity, decline in overseas demand, demand for high-end products and market expansion falling short of expectations, and increasingly fierce industry competition ### Related Stocks - [600176.CN](https://longbridge.com/en/quote/600176.CN.md) - [300196.CN](https://longbridge.com/en/quote/300196.CN.md) - [605006.CN](https://longbridge.com/en/quote/605006.CN.md) - [002080.CN](https://longbridge.com/en/quote/002080.CN.md) ## Related News & Research - [Xinhua Pharma unit Xincat’s azithromycin tablets pass China generic consistency evaluation](https://longbridge.com/en/news/297485179.md) - [Repsol CEO Imaz buys EUR 405,750 in shares](https://longbridge.com/en/news/297512490.md) - [US says no ships hit mines in Strait of Hormuz](https://longbridge.com/en/news/297523587.md) - [China Zheshang Bank files list of board, board committee members with disclosure responsibilities](https://longbridge.com/en/news/297520294.md) - [Fives showcases decarbonized glass technology at Glass Problems Conference](https://longbridge.com/en/news/297525349.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**