HTSC·2025-05-14 01:50Investment Rating - The report maintains a "Buy" rating for the glass fiber industry, specifically recommending companies such as China Jushi, Zhongcai Technology, and Changhai Co., Ltd. [7][11][55] Core Insights - The glass fiber industry is experiencing a gradual improvement in profitability, with new production capacity being gradually released. The overall profitability of glass fiber companies is expected to improve year-on-year in 2025 due to price recovery and capacity expansion [1][3][31]. - The industry saw a significant increase in new production capacity in 2024, with 773,000 tons added, representing a year-on-year growth of 89% [1][24]. - The market share of leading companies remains stable, with the top five companies holding a combined market share of 74% as of April 2025 [1][24]. Summary by Sections Production and Capacity - In 2024, China's glass fiber yarn production reached 7.56 million tons, a year-on-year increase of 4.6%, although the growth rate has been declining for three consecutive years [2][12]. - The report highlights that the production capacity of leading companies is expanding, with China Jushi and International Composites having significant overseas production capacities [2][12][24]. Pricing and Profitability - The average selling price of glass fiber products decreased in 2024, with China Jushi's price dropping by 12.0% year-on-year. However, prices are expected to recover in 2025, supported by long-term contracts [3][34]. - The report indicates that the profitability of glass fiber companies has shown a quarterly improvement since Q2 2024, with significant year-on-year growth in net profit for Q1 2025 [4][31][39]. Financial Performance - The report notes that while the net profit of several companies declined in 2024, there was a substantial recovery in Q1 2025, with China Jushi's net profit increasing by 342.5% year-on-year [4][31][56]. - The capital expenditures of major companies decreased in 2024, indicating that the peak of new capacity investment may be nearing its end [5][51]. Recommendations - The report recommends China Jushi, Zhongcai Technology, and Changhai Co., Ltd. as key investment opportunities due to their competitive advantages and growth potential in the glass fiber market [11][55].