CJS(600176) GOLDEN SUN SECURITIES·2024-10-29 00:10Investment Rating - The investment rating for China Jushi is maintained as "Buy" [3][14]. Core Views - China Jushi's performance is improving, with a focus on product structure upgrades to restore profitability [1]. - The company reported a revenue of 11.632 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.81%, but a net profit attributable to shareholders of 1.533 billion yuan, down 42.66% year-on-year [1]. - The third quarter saw a revenue of 3.893 billion yuan, up 8.27% year-on-year, and a net profit of 572 million yuan, down 6.38% year-on-year, while the net profit after deducting non-recurring items increased by 49.18% year-on-year [1]. Summary by Sections Financial Performance - For Q1-Q3 2024, the comprehensive gross margin of China Jushi was 20.13%, 22.57%, and 28.18% respectively, indicating a steady increase in profitability [1]. - The company’s operating cash flow for Q3 was 845 million yuan, showing significant improvement year-on-year [1]. - The forecast for net profit attributable to shareholders for 2024-2026 is 2 billion, 2.8 billion, and 3.5 billion yuan respectively, with corresponding P/E ratios of 22x, 16x, and 13x [1][2]. Market Position - China Jushi is recognized as a global leader in fiberglass, possessing core competitive advantages in cost and differentiated products [1]. - The company is expected to benefit from a recovery in demand and stable supply, leading to potential price increases for electronic fabrics [1]. Stock Information - As of October 25, 2024, the closing price was 11.21 yuan, with a total market capitalization of approximately 44.875 billion yuan [3].