Sinoma Science & Technology Co Ltd

Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical and other companies announced that from October 1, 2026, new photoresist pricing for global customers will be raised by 15% overall, with high-end ArF series long-term contract quotes up 16% to 22%, HBM-specific immersion ArF up as much as 24%, spot bulk orders up 32% to 38%, KrF series standard grades up 9% to 14%, and 3D NAND thick-film KrF up 18% to 20%. Boosted by the price hike news, the electronic chemicals sector remained strong all day. Xilong Scientific surged to limit up with heavy volume shortly after the midday open, hitting a two-month high, with turnover in less than 15 minutes exceeding the entire previous day's total. Haixing shares climbed rapidly on late-session volume, while Guangxin Materials and Zhongshi Technology also showed unusual upward moves during the session. Also lifted by the price hike news, the glass fiber sector index has risen for seven consecutive days, with Honghe Technology up for seven straight days, and China Jushi, International Composites and Sinoma Science & Technology all up for five consecutive days. The latest data from Sublime China Information shows that as of September 15, the ex-factory price of 7628 electronic fabric was about 11.5 to 12.1 yuan per meter, up 10% to 20% month on month, with the year-to-date gain reaching as high as 162%.

A recent in-depth supply chain survey by Cailian Press found that surging AI server demand combined with tight industry capacity is intensifying the supply crunch for upstream PCB base materials, electronic yarn and electronic fabric. High-end electronic yarn remains extremely hard to source, and some manufacturers are shifting capacity toward high-margin categories such as ultra-thin fabric, extremely thin fabric, and specialty fabric, causing spot shortages and price increases even for ordinary electronic fabric. In the first half of this year, the electronic fabric industry completed five rounds of price increases. Thick fabric prices have now doubled from the end of last year. Data from Zhuochuang Information show that in August, the mainstream market average price of domestic G75 electronic yarn rose to 19,700 to 20,000 yuan per tonne, up nearly 53 percent from the end of May. The mainstream transaction price of traditional 7628 electronic fabric rose to 10 to 10.2 yuan per metre, a month-on-month increase of 17 to 18 percent. Cumulative gains this year for thin and ultra-thin fabrics such as 2116 and 1080 have exceeded 140 percent. Liu Yang, an analyst at Zhuochuang Information, said that under the siphon effect of AI demand, leading companies are proactively cutting conventional 7628 electronic fabric capacity and shifting to thin fabric and low-dielectric high-frequency specialty fabric, creating a situation where the supply-demand gap for conventional fabric is widening while high-end specialty fabric is severely out of stock. The industry is currently in a state of almost zero inventory. In response, listed companies including China Jushi, Sinoma Science and Technology, CPIC, Jujie Microfiber, and Goldenmax International Technology are accelerating capacity deployment. Quartz fiber electronic fabric, known as Q fabric, which suits high-frequency and high-speed application scenarios, is the main deployment direction. Among them, Feilihua is expected to achieve sales revenue of 150 million yuan from quartz electronic fabric in the first half of this year, and Honghe Technology's Q fabric has passed downstream customer certification and already has small-volume sales. Many interviewees believe that as the AI computing infrastructure wave continues, short-term supply of PCB upstream base materials such as electronic yarn and electronic fabric will remain tight. Because new capacity takes a long time to come online, combined with cost support and downstream demand resonance, product prices are expected to rise further.

Sinoma Science & Technology released its 2026 interim report, with net profit attributable to the parent company of 1.208 billion yuan, an increase of 209 million yuan from the same period last year, up 20.93% year on year, marking a second consecutive year of growth. Total operating revenue was 16.257 billion yuan, up 21.95% year on year. Net cash flow from operating activities was negative 200 million yuan. The latest gross margin was 21.29%, up 1.24 percentage points year on year. The latest return on equity was 5.92%, up 0.70 percentage points year on year. Diluted earnings per share were 0.72 yuan, up 20.94% year on year.