CJS(SH:600176) Dongxing Securities·2025-10-24 10:21Investment Rating - The report maintains a "Strong Buy" rating for China Jushi [2][6] Core Views - The company has shown significant improvement in both revenue and profit levels in the first three quarters of 2025, with a revenue of 13.904 billion yuan, a year-on-year increase of 19.53%, and a net profit of 2.568 billion yuan, a year-on-year increase of 67.51% [3][4] - The stability of fiberglass prices since the beginning of 2025, despite a decline in real estate and fixed asset investments, indicates a balanced supply-demand situation in the industry [4] - New demand from sectors such as wind power, automotive, and electronics has positively impacted the company's performance, allowing it to benefit from the industry's recovery [4][5] Financial Performance Summary - The company's gross margin for the first three quarters of 2025 was 32.42%, an increase of 8.68 percentage points year-on-year, while the net profit margin was 19.22%, up 5.58 percentage points year-on-year [5] - The total asset turnover ratio improved to 0.26 times, a year-on-year increase of 0.04 times, and the debt-to-asset ratio decreased to 39.40%, down 2.63 percentage points year-on-year [5] - The annualized return on equity (ROE) reached 11.11%, an increase of 4.02 percentage points year-on-year [5] Growth Forecast - The company is expected to achieve net profits of 3.411 billion yuan, 4.023 billion yuan, and 4.670 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.85 yuan, 1.00 yuan, and 1.17 yuan [6][12] - The current stock price corresponds to PE ratios of 17.99, 15.25, and 13.14 for the years 2025, 2026, and 2027, indicating a favorable valuation for investors [6][12] Competitive Advantages - As a global leader in the fiberglass industry, the company benefits from significant scale and cost advantages, along with an optimized product structure and overseas production capacity [5][7] - The company's proactive development of high-end products and expansion into international markets helps mitigate the impact of trade protectionism [5][7]