CJS(SH:600176) CAITONG SECURITIES·2025-10-22 10:28Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company is expected to continue improving profitability due to product price recovery and structural advantages in its product lineup [8] - The company reported a revenue of 13.904 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 19.53%, and a net profit of 2.568 billion yuan, up 67.51% year-on-year [8] - The company anticipates achieving net profits of 3.431 billion yuan, 4.079 billion yuan, and 4.710 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 40%, 19%, and 16% [8] Financial Performance - Revenue for 2023 is projected at 14.876 billion yuan, with a growth rate of -26.3%, followed by a recovery to 15.856 billion yuan in 2024, and an estimated 19.491 billion yuan in 2025, reflecting a growth rate of 22.9% [7][9] - The company's gross margin for Q3 2025 was 32.8%, an increase of 4.6 percentage points year-on-year, while the net margin was 18.4%, up 3.7 percentage points year-on-year [8] - Earnings per share (EPS) are expected to be 0.76 yuan for 2023, 0.61 yuan for 2024, and projected to rise to 0.86 yuan for 2025 [7][9] Market Position and Product Performance - The company has seen strong sales growth in electronic cloth products, with Q3 2025 sales reaching 294 million meters, a historical high and a year-on-year increase of 72.5% [8] - The company’s product structure continues to show advantages, particularly in wind power and thermoplastic short-cut products, which are maintaining good growth trends [8] - Despite a slight decline in product prices, the company’s overall sales volume for glass fiber yarn and products increased by 10% year-on-year in Q3 2025 [8]