CJS(600176)2024-10-28 06:14Investment Rating - The report maintains a "Buy" rating for China Jushi (600176) [4][6] Core Views - The company reported a significant improvement in profit margins quarter-on-quarter, with a recovery in non-recurring net profit growth [4][6] - The company achieved a revenue of 11.63 billion yuan in the first three quarters of 2024, a year-on-year increase of 1.8%, while the net profit attributable to shareholders was 1.53 billion yuan, a year-on-year decrease of 42.7% [4][6] - The third quarter saw a revenue of 3.89 billion yuan, an 8.3% year-on-year increase, and a net profit of 570 million yuan, a 6.4% year-on-year decrease [4][6] Summary by Sections Financial Performance - In Q3 2024, the company achieved a gross profit margin of 28.18% and a net profit margin of 15.38% [5] - The gross profit margin increased by 1.04 percentage points year-on-year and 5.61 percentage points quarter-on-quarter [5] - The company’s non-recurring net profit for Q3 was 530 million yuan, marking a 49.2% year-on-year increase and a 14.8% quarter-on-quarter increase, indicating the first positive growth since Q1 2022 [4][5] Industry Dynamics - The fiberglass industry has undergone multiple rounds of price increases since March 2024, positively impacting the company's profitability [6] - The average price of winding direct yarn increased significantly, indicating a favorable pricing environment for the company [6] - The company has maintained stable capacity expansion, enhancing its competitive advantage in the market [6] Future Outlook - The report forecasts net profits for 2024, 2025, and 2026 to be 2.43 billion, 3.08 billion, and 3.59 billion yuan respectively, with corresponding price-to-earnings ratios of 18, 15, and 13 times based on the closing price on October 25, 2024 [6][8]