CJS(SH:600176) EBSCN·2025-09-05 07:48Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - In H1 2025, the company achieved total operating revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 9.1 billion, 1.69 billion, and 1.70 billion yuan respectively, representing year-on-year increases of 18%, 76%, and 171% [5] - In Q2 2025, the company recorded total operating revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 4.6 billion, 960 million, and 960 million yuan respectively, with year-on-year increases of 6%, 57%, and 108%, and quarter-on-quarter increases of 3%, 31%, and 29% [5] Summary by Sections Revenue Performance - The company's revenue from the roving yarn business in H1 2025 was approximately 7.3 billion yuan, a year-on-year increase of 17%, with sales volume of 1.58 million tons, up 4% year-on-year [6] - The revenue from the electronic cloth business in H1 2025 was approximately 1.56 billion yuan, a year-on-year increase of 18%, with net profit excluding non-recurring items of approximately 300 million yuan, up 233% year-on-year [7] Business Outlook - In H2 2025, the focus will be on the demand for wind power yarn, price trends of electronic cloth, and the company's progress in special fabric business layout [8] - The company is expected to maintain a stable cash flow from its wind power generation business, which is gradually expanding its profit scale [8] Financial Forecasts - The company forecasts net profit attributable to shareholders of 3.3 billion, 4.4 billion, and 5.2 billion yuan for 2025, 2026, and 2027 respectively [8] - The current price corresponds to a dynamic P/E ratio of 17x for 2025 [8] Key Financial Metrics - The company is projected to have a gross margin of 27.9% in 2025, with an expected increase to 30.9% by 2027 [12] - The return on equity (ROE) is expected to be 10.3% in 2025, increasing to 13.3% by 2027 [12]