CJS(SH:600176) Dongxing Securities·2024-08-27 02:23Investment Rating - The report maintains a "Strong Buy" rating for the company, China Jushi [4][9]. Core Views - China Jushi, as a leading player in the fiberglass industry, demonstrates stable operations and strong risk resistance capabilities despite a challenging market environment [3][4]. - The company's revenue for the first half of 2024 was 7.739 billion yuan, a year-on-year decrease of 1.16%, while net profit attributable to shareholders was 961 million yuan, down 53.41% year-on-year [2][3]. - The decline in overall revenue is primarily attributed to a 93.97% drop in other operating income, while the main fiberglass and products business saw a revenue increase of 0.44% [3]. Financial Performance Summary - The company achieved a gross margin of 21.50% in the first half of 2024, a decrease of 7.86 percentage points year-on-year, but an increase of 1.37 percentage points compared to the first quarter of 2024 [3]. - Sales volume for fiberglass and electronic cloth reached 1.5221 million tons and 458 million meters, respectively, representing year-on-year growth of 22.57% and 12.53% [3]. - The company forecasts net profits of 2.033 billion, 2.583 billion, and 3.662 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 0.51, 0.65, and 0.91 yuan [4][10]. Market Position and Competitive Advantage - As a global leader in the fiberglass industry, the company possesses significant scale and cost advantages, which enhance its ability to withstand market fluctuations [3][4]. - Continuous improvements in production equipment and technology, along with an optimized product structure, have allowed the company to enhance product quality and meet diverse customer needs [3][4]. - The report suggests that the current industry downturn may accelerate the elimination of excess capacity, positioning the company favorably for future demand recovery [3].