CJS(SH:600176) EBSCN·2024-04-26 10:32Investment Rating - The report maintains a "Buy" rating for China Jushi (600176.SH) [4] Core Views - The company's revenue and net profit for Q1 2024 showed a decline of 8% and 62% year-on-year, respectively, but the sales volume of glass fiber yarn increased by 22% year-on-year, indicating resilience in demand despite price pressures [2][4] - The company has adjusted its profit forecasts for 2024-2026, with net profit estimates now at 2.64 billion, 3.87 billion, and 5.98 billion yuan, reflecting a downward adjustment of 2% to 6% [4] Summary by Sections Revenue and Profitability - In Q1 2024, China Jushi reported revenues of 3.4 billion yuan, with a net profit attributable to shareholders of 350 million yuan and a non-recurring net profit of 170 million yuan, representing declines of 8%, 62%, and 66% year-on-year, respectively [2] - The average price of glass fiber yarn in Q1 2024 was 4,011 yuan per ton, down 25% year-on-year and 8% quarter-on-quarter, leading to a significant drop in profit margins [3] Business Segments - Glass Fiber Yarn: The company achieved a sales volume of approximately 690,000 tons in Q1 2024, up 22% year-on-year and 6% quarter-on-quarter, benefiting from price increases and accelerated inventory depletion in downstream markets [3] - Electronic Fabric: Sales volume reached approximately 186 million meters, a 24% increase year-on-year, although profitability is expected to stabilize following price increases in April 2024 [4] Financial Projections - The report projects a dynamic P/E ratio of 18x for 2024 based on the current price of 11.98 yuan per share, with a focus on improving profitability in the electronic fabric segment due to limited new capacity [4][5]