CJS(600176) Southwest Securities·2024-11-01 04:01Investment Rating - The report assigns a "Buy" rating for China Jushi (600176) with a target price of 13.65 CNY over the next six months [1][17]. Core Views - China Jushi is a leading player in the fiberglass industry with significant competitive advantages, including a strong global presence and a focus on high-end applications [1][4]. - The company reported a total revenue of 11.63 billion CNY for the first three quarters of 2024, a year-on-year increase of 1.8%, while the net profit attributable to shareholders decreased by 42.7% to 1.53 billion CNY [1][10]. - The report highlights the company's efforts to expand revenue channels and optimize product structure, particularly in high-end applications such as wind energy and automotive lightweighting [1][10]. Summary by Sections Company Overview - China Jushi, established in 1993, is the global leader in fiberglass production, with a production capacity of 2.6 million tons annually and a comprehensive product range [4][10]. - The company has established a global sales network covering over 100 countries, enhancing its competitive edge [4][10]. Financial Performance - In Q3 2024, the company achieved a revenue of 3.89 billion CNY, up 8.3% year-on-year, while the net profit attributable to shareholders was 570 million CNY, down 6.4% [1][10]. - The gross margin decreased by 4.3 percentage points to 23.7% due to weak downstream demand and price declines [1][10]. Market Position and Competitive Advantage - China Jushi maintains a strong market position with a focus on innovation and R&D, holding 100% proprietary core intellectual property in key technologies [1][10]. - The company is actively expanding into high-end applications and international markets, establishing strategic partnerships with renowned global enterprises [1][10]. Earnings Forecast and Valuation - The report forecasts EPS for 2024, 2025, and 2026 to be 0.49 CNY, 0.65 CNY, and 0.84 CNY, respectively, with corresponding PE ratios of 21, 16, and 13 [1][17]. - The target price of 13.65 CNY reflects a valuation of 21 times the expected earnings for 2025, indicating confidence in the company's recovery and growth potential [1][17].