Core Viewpoint - The carbon fiber market is experiencing significant differentiation, with strong competition in general-purpose and large-tow products, while high-end applications in aerospace, hydrogen storage, and large-scale wind power require consistent performance and reliable long-term supply [1] Industry Summary - The demand for high-end carbon fiber is rapidly increasing, with China's actual consumption expected to reach 96,446 tons in 2025, representing a year-on-year increase of 71.89%. The growth is primarily concentrated in wind turbine blades and aerospace sectors [1] - The supply-demand relationship is improving, and companies capable of consistently providing high-performance products are gradually regaining pricing power [1] Company Summary - Jilin Chemical Fiber announced a price increase for its wet-process 12K carbon fiber and 3K carbon fiber, effective January 1, 2026, with increases of 5,000 yuan and 10,000 yuan per ton, respectively [1]

Core Insights - The report highlights a price increase announced by a leading carbon fiber company, indicating a potential recovery in the industry's bottom line and overall market conditions [4][5] - The report emphasizes the growth potential in the label printing sector, particularly for Jiangtian Technology, which specializes in high-quality label printing services [6][7] Industry Summary Chemical Raw Materials - The new materials sector experienced a slight decline, with the new materials index down by 0.23%, although it outperformed the ChiNext index by 2.03% [4] - Key price movements in the amino acids and biodegradable materials were noted, with valine increasing by 4.98% to 13,700 CNY/ton, while other prices remained stable [4] Carbon Fiber Industry - The carbon fiber market is showing signs of recovery, with a significant increase in demand expected, particularly in wind power and aerospace applications. The actual consumption of carbon fiber in China is projected to reach 96,446 tons in 2025, a year-on-year increase of 71.89% [5] - Major companies like Toray and Jilin Chemical Fiber have announced price hikes for their carbon fiber products, indicating a strengthening market position for high-performance carbon fiber suppliers [5] Label Printing Sector - Jiangtian Technology is positioned as a leading service provider in the label printing industry, with a focus on non-dry adhesive labels used in various consumer sectors. The company has established stable partnerships with major brands like Unilever and Procter & Gamble [6] - The label printing market in China is expected to grow significantly, with a projected compound annual growth rate of 10.44% from 2023 to 2031, driven by rising disposable incomes and consumption upgrades [6][7] Solar Industry - The report notes stable pricing for polysilicon and an increase in silicon wafer prices, with the average price for 130um N-type silicon wafers rising by 5.9% to 1.25 CNY/piece [8] - Battery cell prices have also increased, with N-type battery cells seeing a 13.3% rise to 0.34 CNY/W, reflecting a tightening supply and increased production costs [9]

Investment Rating - The report maintains a "B" rating for the new materials sector, indicating a stable outlook with potential for recovery in the carbon fiber industry [2]. Core Insights - The carbon fiber industry is experiencing a price increase, confirming a bottoming out of the market and a potential recovery in demand. High-end carbon fiber demand is expected to rise significantly, particularly in wind power and aerospace applications, with actual consumption in China projected to reach 96,446 tons in 2025, a year-on-year increase of 71.89% [5][7]. - The new materials sector index decreased by 0.23% recently, outperforming the ChiNext index by 2.03%. Key segments such as industrial gases and biodegradable plastics showed positive growth, while semiconductor materials faced a decline [2][19]. Summary by Relevant Sections 1. Market Performance - The new materials sector index fell by 0.23%, while the ChiNext index dropped by 2.03%. Over the past five trading days, the synthetic biology index rose by 1.76%, industrial gases increased by 3.86%, and battery chemicals decreased by 2.87% [2][19]. 2. Price Tracking - Key prices include: - Valine: 13,700 CNY/ton (+4.98%) - Arginine: 20,950 CNY/ton (unchanged) - Methionine: 17,850 CNY/ton (-0.56%) - PLA (injection grade): 17,800 CNY/ton (unchanged) [3]. 3. Investment Recommendations - The report suggests focusing on leading companies in the carbon fiber sector, such as Jilin Chemical Fiber, Zhongfu Shenying, Zhongjian Technology, and Guangwei Composites, as they are expected to benefit from the recovery in high-end carbon fiber demand [7].

Core Viewpoint - The company reported a decline in net profit for Q3 2025 despite a slight increase in revenue, indicating ongoing pressure on its performance, particularly in the carbon fiber segment [1][3]. Financial Performance - For Q3 2025, the company achieved revenue of 7.85 billion, a year-on-year increase of 5.24%, while net profit was 1.45 billion, down 41.05% year-on-year [1]. - For the first three quarters of 2025, total revenue was 19.86 billion, up 4.40% year-on-year, but net profit fell to 4.15 billion, a decrease of 32.55% [1]. - The company’s various segments showed mixed results, with the energy new materials segment growing by 58.95% to 6.52 billion, while the fiber segment declined by 12.54% to 10.03 billion [1]. Product Development and Market Expansion - The company is actively developing new products and entering new markets, including civil aviation, low-altitude economy, and electromagnetic energy storage [2]. - New carbon fiber products, such as T1100 and TZ40S, have been successfully applied in UAVs and other high-end equipment [2]. - The company has launched high-performance prepregs for various applications, including consumer electronics and photovoltaic industries, achieving stable supply status [2]. Investment Rating - The investment rating remains "strongly recommended," with adjusted profit forecasts for 2025-2027, projecting net profits of 6.8 billion, 8.1 billion, and 9.4 billion respectively [3]. - The expected EPS for the same period is 0.82, 0.98, and 1.13, with corresponding PE ratios of 35.4, 29.7, and 25.7 [3].

Investment Rating - The report initiates coverage with a "Buy" rating for the company, which is recognized as a leading domestic aerospace high-end carbon fiber enterprise [3]. Core Insights - The company is expected to achieve revenue growth from 10.25 billion to 14.62 billion CNY and net profit growth from 4.57 billion to 6.56 billion CNY from 2025 to 2027, supported by capacity expansion and stable customer relationships [3]. - The ZT9H series of carbon fiber products is anticipated to see a significant increase in demand in 2025, with ongoing negotiations for new contracts with clients [4]. - The company reported a revenue of 8.12 billion CNY in 2024, a year-on-year increase of 45.39%, and a net profit of 3.56 billion CNY, up 23.16% year-on-year [6]. Financial Summary - Revenue projections for the company are as follows: 2023A: 559 million CNY, 2024A: 812 million CNY, 2025E: 1,025 million CNY, 2026E: 1,245 million CNY, and 2027E: 1,462 million CNY, with respective growth rates of -29.90%, 45.39%, 26.21%, 21.37%, and 17.50% [2]. - The net profit attributable to the parent company is projected to be 289 million CNY in 2023A, increasing to 656 million CNY by 2027E, with growth rates of -51.44%, 23.16%, 28.27%, 21.77%, and 17.99% [2]. - The earnings per share (EPS) are expected to rise from 0.66 CNY in 2023A to 1.49 CNY in 2027E, with corresponding price-to-earnings (PE) ratios decreasing from 45.20 to 22.30 [2]. - The gross margin is projected to be 63.12% in 2024, with a slight decline expected due to production ramp-up and fixed cost absorption [5].