CJS(SH:600176) Changjiang Securities·2025-10-26 09:19Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company achieved a revenue of 13.9 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 20%. The net profit attributable to shareholders was 2.57 billion yuan, up 68% year-on-year, while the net profit excluding non-recurring items reached 2.61 billion yuan, marking a 126% increase [3][4]. - In the third quarter, the company reported a revenue of 4.8 billion yuan, a 23% increase year-on-year, with a net profit of 880 million yuan, up 54% year-on-year, and a net profit excluding non-recurring items of 910 million yuan, reflecting a 73% increase [3][4]. - The company is experiencing a recovery in electronic fabric demand, driven by the automotive and consumer electronics sectors, alongside a low base from the previous year [10]. Summary by Sections Financial Performance - The company's gross margin for the first three quarters was approximately 32.4%, an increase of 8.7 percentage points year-on-year. The gross margin for the third quarter was about 32.8%, up 4.6 percentage points year-on-year [10]. - The company has effectively reduced costs, with the expense ratio for the first three quarters at about 9.0%, down 1.5 percentage points year-on-year [10]. Market Dynamics - The decline in fiberglass prices from May to July was attributed to weakened export demand and increased supply. The actual tariffs imposed on fiberglass exports to the U.S. have reached 60%, impacting the company's export capacity [10]. - The report anticipates that fiberglass prices will stabilize in the second half of 2025, with potential upward momentum in 2026 due to limited new production capacity and expected recovery in overseas demand [10]. Strategic Initiatives - The company plans to repurchase 30 to 40 million shares, accounting for 0.75% to 1.00% of the total share capital, with a maximum repurchase price of 22 yuan per share [10]. - The company is actively positioning itself in the AI electronic fabric market, indicating a positive outlook for its operations in the coming years [10].