CJS(SH:600176) Ge Long Hui·2026-01-08 05:23Core Viewpoint - The report highlights that China Jushi's first equity incentive plan is expected to enhance the company's medium to long-term development by motivating the management team and improving operational efficiency [1] Group 1: Equity Incentive Plan - The company has launched its first-ever equity incentive plan since its listing, covering a wide range of participants [1] - The incentive plan includes a net profit growth target, with compound annual growth rates (CAGR) for net profit from 2026 to 2028 set at no less than 38.5%, 27%, and 22% respectively [1] Group 2: Financial Projections - Based on the 2024 net profit as a baseline, the projected net profits for 2026, 2027, and 2028 are estimated to be no less than 4.851 billion, 5.180 billion, and 5.603 billion respectively [1] - The corresponding price-to-earnings (PE) ratios for 2026 to 2028 are projected to be 14, 13, and 12 times based on the market capitalization as of December 31, 2025 [1] Group 3: Industry Outlook - The industry is showing signs of recovery after hitting a bottom, and the company has a clear product structure advantage [1] - The company's entry into the high-end electronic fabric sector is expected to provide a significant growth opportunity, referred to as a "Davis double hit" [1] Group 4: Current Valuation - The current stock price corresponds to PE ratios of 21, 18, and 17 times for the years 2025 to 2027 [1] - The report maintains a "buy" rating for the company [1]