Valuation Analysis of Fiberglass Leaders: A Brief Review of International Composites Performance and Institutional Forecasts
As of April 6, 2026, the stock price of International Composites was 11.06 yuan, with a total market value of 41.71 billion yuan. As a leading enterprise in the field of domestic glass fiber and products and a core pillar enterprise of glass fiber and composite materials under Yuntianhua Group, it focuses on high-performance glass fiber and The core business of composite materials has built a full industrial chain layout of "electronic yarn-electronic cloth-composite materials", while promoting technology research and development and global production capacity layout. The products cover electronic yarn, electronic cloth, twistless roving, chopped fiber, etc., and are widely used in electronic communications, new energy Source wind power, basic building materials, AI servers, high-end PCB and other downstream fields, relying on significant technical barriers, cost advantages throughout the industry chain, large-scale production capacity advantages and state-owned assets empowerment advantages, benefiting from the explosion of demand for AI electronic cloth, the high prosperity of the wind power industry, and the glass fiber industry With the improvement of supply and demand and the dividend of domestic substitution, the performance in 2025 will turn losses into profits. The operating fundamentals will continue to improve, and the long-term growth logic is clear. In the next four years, high-quality growth will be achieved by relying on the release of high-end electronic cloth production capacity, wind power material upgrades, global layout and technology iteration. The first part of this article briefly summarizes core performance, future growth and valuation. The second part summarizes institutional forecasts, analyzes investment value, and focuses on Niu Xiaowu.
Part One: Performance Review, Growth Outlook and Valuation Calculation in the Next Four Years 1. Core Performance in 2025
In 2025, International Composites seized the development opportunities arising from the explosion of demand for AI electronic cloth and the improvement of the supply and demand structure of the fiberglass industry. Relying on the empowerment of state-owned assets and technological upgrading, it achieved steady growth in operating income and a turnaround in net profit. The competitiveness of its core business continued to improve, and its leading position in the domestic fiberglass industry was further consolidated: the annual operating income was approximately 8.55 billion yuan, a steady growth year-on-year; the net profit attributable to the parent company was approximately 380 million yuan, a year-on-year turnaround, and a net loss attributable to the parent company in 2024. The loss was significantly improved to 354 million yuan. Net profit after deducting non-attributed profits was about 370 million yuan. Basic earnings per share were 0.10 yuan. The profit scale and profit quality were both improved. The core was due to the release of high-end electronic cloth production capacity and the optimization of product structure. The revenue of AI electronic cloth business increased significantly year-on-year. At the same time, the company promoted refined management, cost reduction and efficiency improvement and technological transformation and upgrading. Production technology and economic indicators were significantly improved compared with the same period last year. Production capacity utilization remained high and comprehensive profitability continued to improve. The company's performance has shown steady growth quarter by quarter and outstanding profitability resilience. In the first three quarters of 2025, it achieved operating income of 6.413 billion yuan and net profit attributable to shareholders of 273 million yuan, a year-on-year increase of 19.01% and 273.53% respectively, highlighting the stability of profitability. The company's asset scale remains stable. As of the end of 2025, the total assets are approximately 22.05 billion yuan, the total liabilities are 12.86 billion yuan, the total shareholders' equity is 9.19 billion yuan, the asset-liability ratio is 58.3%, and the financial structure continues to be optimized. Net cash flow from operating activities is abundant, reaching 1.463 billion yuan in the first three quarters of 2025, supporting resource exploration, production capacity expansion and technology research and development; its core advantages are outstanding, it has been deeply involved in the fiberglass field for more than 30 years, and has a national-level technology center and postdoctoral workstation , masters the full-process independent controllable technology such as tank kiln design and platinum leakage plates. It is the only domestic enterprise that achieves full spectrum coverage of the first to third generations of Low-Dk cloth. The annual production capacity of fiberglass yarn exceeds 1.2 million tons, the annual production capacity of fiberglass cloth reaches 220 million meters, and the annual production capacity of wind power The global market share of high-modulus yarn exceeds 25%. It has overseas production bases in Brazil and Bahrain, and overseas revenue will account for 34.9% in 2025. At the same time, relying on the holding background of the Yunnan Provincial State-owned Assets Supervision and Administration Commission, financing channels are smooth, providing a solid guarantee for the expansion of high-end production capacity.
2. Performance growth prospects in the next four years (2026-2029)
Relying on the continued explosion of demand for AI electronic fabrics, the high prosperity of the wind power industry, the continuous improvement of supply and demand in the fiberglass industry, the domestic substitution dividend and the company's technology and production capacity advantages, international composite materials will achieve steady growth from 2026 to 2029, showing a high-quality growth trend of growth and cycle resonance: 2026 will benefit from the continued production capacity of second-generation Low-Dk cloth Release, increase in demand for AI servers, and growth in demand for wind power materials, the net profit attributable to the parent company is expected to reach 550-650 million yuan, a year-on-year increase of 44.7%-71.1%, in line with the average consensus expected by institutions. The core is that institutions are generally optimistic about its AI electronics distribution track potential and the advantages of the entire industry chain; global AI server demand will continue to increase in 2027. There is a significant gap between supply and demand for high-end electronic fabrics. The company's third-generation Q fabric is gradually mass-produced, and the wind power high-modulus yarn business continues to develop. The net profit attributable to the parent company is expected to reach 800-920 million yuan, a year-on-year increase of 45.5%-41.5%. In 2028, the company's entire industry chain synergy will be fully demonstrated, the product structure of high-end electronic fabrics will continue to be optimized, and the production capacity of overseas bases will be further released. Open, benefiting from the high prosperity of the global new materials industry, the net profit attributable to the parent company is expected to reach 1.15-1.28 billion yuan; in 2029, the company's AI electronic cloth leading position will be further consolidated, the three generations of high-end products will achieve large-scale profits, the global layout will continue to deepen, and a multi-field coordinated development pattern will be formed, and the net profit attributable to the parent company is expected to reach 1.50-1.65 billion yuan. The core growth drivers are the release of high-end electronic cloth production capacity, domestic substitution of AI electronic cloth, upgrading of wind power materials and expansion of global layout.
3. Valuation and target price calculation
The core logic of the valuation of the fiberglass and new materials industry: taking into account the dual attributes of industry cycle attributes (relying on price fluctuations of fiberglass products, industry supply and demand patterns, and changes in downstream demand) and growth attributes (relying on domestic substitution of AI electronic cloth, technology upgrades, production capacity expansion, global layout, and state-owned assets empowerment), the core adopts P E (price-to-earnings ratio) valuation is calculated based on industry status, technological advantages, state-owned assets background and valuation levels of comparable companies. The reasonable PE range (2026) is 35.0-40.0 times, which is in line with the current high boom trend of AI new materials and the characteristics of the company's glass fiber faucet, and adapts to the characteristics of rapid performance growth. The current static PE of International Composite Materials (calculated based on net profit attributable to the parent company of 380 million yuan in 2025) is approximately 109.8 times; the dynamic PE in 2026 is approximately 32.1-39.5 times. Combined with the compound growth rate of net profit in the next four years of approximately 45.0%-50.0%, the corresponding PEG is approximately 0.64-0.88. The valuation is within the reasonable range of the industry, fully reflecting the market’s optimistic expectations for the AI electronics distribution track and the company’s growth potential.
Based on calculations based on industry trends, the advantages of glass fiber leaders and performance growth potential, the reasonable valuation corresponds to a dynamic PE of approximately 35.0-40.0 times in 2026, corresponding to a reasonable valuation range of 19.25-26.0 billion yuan; the neutral target price is 13.5-17.8 yuan, which is 22.0 times higher than the current stock price. 1%-61.0% fluctuation space; the conservative target price is 11.5 yuan, and the optimistic target price is 20.0 yuan, which is in line with the expectations of recent institutional research reports. The short-term target price is affected by the pace of AI electronic cloth production capacity release, glass fiber price fluctuations, and long-term driven by AI server demand, domestic replacement progress and global layout. The current valuation has fully reflected the growth expectations of the AI electronic fabric track, coupled with the continued release of dividends from the new material industry. As performance is steadily realized and high-end production capacity is implemented, the valuation will gradually return to a reasonable center. We need to be alert to the callback risks of lower-than-expected high-end electronic fabric yield rates, concentrated release of industry production capacity triggering price wars, slow progress in international customer certification, deterioration of the supply and demand pattern of the fiberglass industry, and fluctuations in raw material prices.
Part 2: Domestic and foreign research institutions’ forecasts for the company
As of April 6, 2026, the attention of domestic and foreign research institutions on international composite materials focuses on the pace of AI electronic cloth production capacity release, the improvement of second-generation Low-Dk cloth yield, the demand for wind power materials and the certainty of performance growth. Most institutions have given a "buy/overweight" rating. The differences focus on the explosion of AI electronic cloth demand and performance growth rate. The details are summarized as follows.
1. Forecasts by domestic research institutions
Domestic institutions, mainly brokerage research reports and financial platforms, are generally optimistic about the company's leading position in glass fiber, AI electronic cloth track advantages, cost advantages in the entire industry chain, and state-owned assets empowerment dividends. The core predictions and opinions are as follows:
1. Southwest Securities: Give a "buy" rating, optimistic about the domestic substitution and performance recovery of AI electronic cloth. It predicts that the net profit attributable to the parent company from 2026 to 2028 will be 580 million yuan, 830 million yuan, and 1.18 billion yuan respectively. The corresponding PEs are 36.0 times, 25.2 times, and 17.8 times respectively, and the target price is 17.5 yuan.
2. Minsheng Securities: Give a "buy" rating, focusing on the release of second-generation Low-Dk cloth production capacity and the explosion of AI demand. It predicts that the net profit attributable to the parent company from 2026 to 2028 will be 620 million yuan, 880 million yuan, and 1.23 billion yuan respectively. The corresponding PEs are 34.4 times, 24.0 times, and 17.1 times respectively, and the target price is 18.8 yuan.
3. Sinolink Securities: Give an "overweight" rating, pay attention to the improvement of electronic fabrication yield rate and industry competition risks. It predicts that the net profit attributable to the parent company from 2026 to 2028 will be 550 million yuan, 800 million yuan, and 1.15 billion yuan respectively, and gives a target price of 16.0 yuan.
In addition, in the past 90 days, a number of securities firms have issued research reports, most of which have given a buy rating. The company has attracted a lot of attention. The institutions unanimously predict that the net profit in 2026 will reach 550-650 million yuan, a significant year-on-year increase. It is predicted that the net profit attributable to the parent company in 2029 will generally be around 15 In the range of .0-1.68 billion yuan, the average target price of institutions is about 17.2 yuan (the highest is 20.0 yuan, the lowest is 11.5 yuan). It also reminds risks such as lower-than-expected electronic fabrication yield rates and industry price wars. Some institutions are optimistic about the long-term growth space brought by its AI electronic fabrication track.
2. Forecasts by foreign research institutions
Foreign institutions focus on the global fiberglass industry trends, the technological advantages of international composite AI electronic cloth, the progress of production capacity expansion and global layout, and generally give a "buy/overweight" rating. The core predictions and opinions are as follows:
1. UBS: Gives a "buy" rating, optimistic about the explosive demand for AI electronic cloth and the company's cost advantage. It predicts that the net profit attributable to the parent company from 2026 to 2028 will be 570 million yuan, 820 million yuan, and 1.16 billion yuan respectively, and gives a target price of 17.0 yuan (equivalent to RMB).
2. Goldman Sachs Group: Gives a "buy" rating, focusing on the potential of domestic substitution of high-end electronic cloth and wind power materials. It predicts that the net profit attributable to the parent company from 2026 to 2028 will be 560 million yuan, 810 million yuan, and 1.14 billion yuan respectively, and gives a target price of 16.5 yuan (equivalent to RMB).
3. Morgan Stanley: Gives an "overweight" rating, pays attention to industry capacity release and competition risks, predicts net profits attributable to shareholders from 2026 to 2028 to be 540 million yuan, 790 million yuan, and 1.12 billion yuan respectively, and gives a target price of 15.0 yuan (equivalent to RMB).
3. Consensus and Disagreement on Institutional Forecasts
The core consensus of the organization: As a leading enterprise in the domestic fiberglass industry and a core target of the AI electronic cloth track, International Composites has significant technical barriers, cost advantages across the entire industry chain, large-scale production capacity advantages and state-owned assets empowerment advantages. It has deeply benefited from the explosion of demand for AI electronic cloth, the high prosperity of the wind power industry, and the supply and demand of the fiberglass industry. Improvement and domestic substitution dividends, performance in 2025 will turn losses into profits, operating fundamentals will continue to improve, and performance will rise rapidly in the next four years. The release of high-end electronic cloth production capacity, domestic substitution of AI electronic cloth, wind power material upgrades and global layout expansion have become core growth engines, with outstanding long-term investment value.
Core differences among institutions: First, there are differences in performance growth rates. Domestic institutions’ predictions of performance growth in 2027 are concentrated at 41.5%-45.5%, while overseas institutions are concentrated at 44.6%-48.1%. The differences are mainly due to differences in judgments on the explosion of demand for AI electronic fabrics and the improvement progress of second-generation Low-Dk fabrication yields; second, differences in valuation judgments, with some institutions believing that the current valuation In line with the growth characteristics of the AI new material track, Davis will usher in a double-click on valuation and profitability as the performance is realized. A few institutions have warned of the suppression of valuations caused by the concentrated release of industry production capacity; third, there are differences in risk concerns. Domestic institutions are concerned about electronic fabrication yield rates that are lower than expected, industry price wars, and the slow progress of international customer certification. Overseas institutions are more concerned about the global fiberglass industry cycle, exchange rate fluctuations, and overseas base operation risks.
Risk warning: This article is based on calculations based on public data and consistent expectations of institutions. High-end electronic fabrication yields are lower than expected, the concentrated release of industry production capacity has triggered a price war, international customer certification progress is slow, the supply and demand pattern of the fiberglass industry has deteriorated, raw material prices fluctuate, overseas base operations are less than expected, macroeconomic fluctuations and intensified industry competition may affect performance and do not constitute investment advice.
