CJS(SH:600176) Great Wall Securities·2024-08-28 11:11Investment Rating - The report maintains a "Buy" rating for China Jushi (600176.SH) [1][3] Core Views - The company has shown a positive sales trend, with Q2 profitability recovering. In Q2 2024, the company achieved revenue of 4.357 billion yuan, a year-on-year increase of 4.77%, while net profit attributable to shareholders was 611 million yuan, a year-on-year decrease of 46.50% [2][3] - The company has implemented multiple measures to improve profitability, including product price recovery and structural adjustments, resulting in a significant increase in sales volume. The sales volume of roving and products increased by 22.57% year-on-year [2][3] - The company continues to expand its production capacity, with the successful ignition of the second production line at the Huai'an zero-carbon intelligent manufacturing base, which is expected to enhance economies of scale [2] Financial Summary - In 2024, the company is expected to achieve a net profit attributable to shareholders of 2.31 billion yuan, with a year-on-year decrease of 24%. The projected net profits for 2025 and 2026 are 3.099 billion yuan and 3.402 billion yuan, respectively, with year-on-year growth rates of 34.2% and 9.8% [1][3] - The company's revenue for 2024 is projected to be 16.334 billion yuan, reflecting a year-on-year growth of 9.8% [1][3] - The company's return on equity (ROE) is expected to decline to 7.6% in 2024, with a gradual recovery to 10.1% by 2026 [1][3]