Research Report Express -- 2.24

1. Market Overview [Taogu Ba]

On February 24th, the first trading day after the Spring Festival, the three major indices all rose. By the close, the Shanghai Composite Index increased by 0.87%, closing at 4,117 points; the Shenzhen Component Index rose by 1.36%; and the ChiNext Index gained 0.99%. The total trading volume across both markets was 2.2 trillion yuan, nearly 220 billion more than the previous trading day. Throughout the day, 4,006 stocks rose, while 1,392 fell.
Volume was relatively restrained on the first day after the holiday. Future market trends should focus on two aspects: first, signals of substantive fulfillment of the cyclically driven price increase logic, by observing (1) the sustainability of confirmed price-increasing stocks, and (2) the actual price increase signals of expected trading stocks; second, the repair of positions in previously crowded sectors, paying attention to whether the high positions before the holiday can be stabilized through sufficient turnover. In the short term, the rhythm is likely to show a phase where cyclically focused stocks see a temporary increase, interspersed with growth stocks undergoing correction. Moving forward, key factors to watch include the continuation of trading volume, whether commodity prices and external volatility converge, and whether the incremental catalysts during the Spring Festival can sustain guiding funds into a new round of allocation.

2. Overseas MDI Price Increase, Focus on Post-Holiday Domestic Price Trends

Overseas Major Manufacturers Raise North American MDI Prices

1. Huntsman: Since February 17, increased MDI prices in the U.S. market by $260/ton, polyether prices up by $110/ton.
2. Covestro: Starting March 1, raised North American MDI prices by $220.5/ton.

Focus on Domestic Post-Holiday Price Trends

1. February is traditionally a key period for polyurethane price increases, driven by holiday stocking demand. MDI and polyether shipments are smooth, and inventories have fallen to low levels.
2. As of February 24, domestic polymer MDI prices are 13,900 yuan/ton, pure MDI prices are 17,500 yuan/ton, both unchanged from before the Spring Festival; TDI prices are 14,900 yuan/ton, up 275 yuan/ton compared to pre-holiday.
3. We believe that with the resumption of downstream operations after the holiday, polyurethane has the potential for price increases.
   Key stocks to watch:
   Wanhua Chemical: Leading polyurethane producer, MDI capacity of 3.5 million tons, TDI capacity of 1.47 million tons.
   Cangzhou Dahuaxing: TDI capacity of 160,000 tons.

Risk warnings: Changes in macroeconomic conditions; weak downstream demand; significant product price fluctuations; and the risk of company performance falling short of expectations.

3. Some News on Heat Dissipation

NVIDIA Official Denies Diamond Cooling Rumors: Related cooperation news is purely false [February 24, 2026, California]
In response to recent widespread rumors in capital markets and social media claiming that NVIDIA’s next-generation GPU uses diamond copper cooling technology and that Jensen Huang had a secret meeting with Chinese diamond industry executives, NVIDIA officially responded today, clarifying that these rumors are seriously false and that the company has not announced any such specific supply chain cooperation information.
Official clarification: Technical exploration should be distinguished from false information.

4. The Era of Electronic Fabric “Memory-Like Storage” Has Arrived

If you enjoyed last September’s storage module sector, you should not miss the “Electronic Fabric Sector” since January this year. In fact, the electronic fabric sector has entered a “memory-like storage” phase, with mainstream electronic fabric categories entering an annual price increase cycle. We believe this price increase will last at least until 2027.
Supply: Limited by Toyota’s weaving machine capacity, making new supply difficult, and traditional electronic fabric weaving machines transitioning to produce specialized electronic fabrics.
Demand: Driven by AI, increasing demand for general and specialized electronic fabrics, with the gradual domestic substitution of specialized electronic fabrics.
Notably, from September 2025 to the peak, storage module prices increased 2-3 times; currently, since January 2026, the electronic fabric sector has risen by about 30-50%, leaving significant room for further growth. Based on the latest industry chain research, we expect prices of electronic fabrics, Low-CTE, and Low-DK second-generation products to enter a rapid upward phase. The overall electronic fabric sector has the potential to double in value.
Key recommended stocks include Honghe Technology, China Stone, International Composites, and Sinoma Technology.