Investment Rating - The report assigns a "Buy-A" rating to the company with a target price of 15.0 CNY for the next six months [3][8]. Core Views - The company is recognized as a global leader in fiberglass production, with a strong competitive moat and resilience in operations, indicating a recovery in profitability starting in 2024 [1][8]. - The report highlights the expected improvement in demand from the wind power and automotive sectors, which will drive the recovery of fiberglass prices and profitability in 2025 [2][3][8]. Summary by Sections Company Overview - The company, China Jushi Co., Ltd., is a leading fiberglass manufacturer with six production bases globally and an annual production capacity of nearly 3 million tons, ranking first in the world [1][17]. - The company has demonstrated strong operational resilience, with a compound annual growth rate (CAGR) of 12.79% in revenue and 33.52% in net profit from 2010 to 2022 [1][26]. Business Expansion - The company has expanded its production capacity significantly over the years, establishing a global presence and becoming the largest fiberglass supplier in the U.S. and Egypt [23][24]. - The company has initiated a transition towards smart manufacturing and zero-carbon production, enhancing its competitive edge [17][25]. Operational Performance - In 2023, the company faced challenges with a decline in revenue and net profit due to weakened industry demand and price drops, with revenues of 14.88 billion CNY and a net profit of 3.04 billion CNY [1][26]. - The report anticipates a gradual recovery in 2024, with quarterly improvements in revenue and net profit as the market stabilizes [28]. Product Segments - The demand for roving and electronic fabrics is expected to grow, driven by the wind power and automotive sectors, with a projected increase in fiberglass production to 7.56 million tons in 2024 [2][3]. - The electronic fabric segment is poised for recovery in 2025, supported by advancements in AI and increased demand for electronic components [3][6]. Financial Forecast - The report forecasts revenues of 15.93 billion CNY, 19.22 billion CNY, and 20.77 billion CNY for 2024, 2025, and 2026, respectively, with corresponding net profits of 2.04 billion CNY, 3.00 billion CNY, and 3.56 billion CNY [9][8]. - The company is expected to maintain a leading gross margin of 29.77% in 2023, outperforming its peers [7][8].

Group 1: Key Insights on Jidian Co., Ltd. (吉电股份) - Jidian Co., Ltd. has transformed from a coal-fired power company to a renewable energy enterprise, with its renewable energy capacity surpassing coal-fired capacity in 2019 [2] - The company is focusing on green hydrogen production, with significant projects like the Daan wind-solar integrated green hydrogen project and the Siping pear tree green methanol project [4][5] - The company’s installed capacity includes 3.3 million kW of coal power, 3.47 million kW of wind power, and 6.62 million kW of solar power, with renewable energy contributing significantly to revenue and gross profit [2][6] Group 2: Industry Trends and Opportunities - The green electricity sector is approaching a turning point, driven by accelerated grid construction and supportive policies that enhance the power system's adjustment capabilities [5] - The global hydrogen demand is projected to exceed 97 million tons in 2023, with green hydrogen expected to play a crucial role in meeting future energy needs [3] - The chemical industry is experiencing a structural opportunity, with low valuations and potential recovery in demand expected by 2025, particularly in potassium fertilizers and organic silicon [29][32] Group 3: Market Dynamics and Projections - The suspension of diamond exports from the Democratic Republic of Congo is expected to create a supply shortage, potentially driving up diamond prices [26][27] - The construction materials sector is seeing a recovery in demand, particularly in cement and glass fiber, supported by favorable policies and market conditions [18][19][22] - The AI and education sector is witnessing advancements, with companies like Duolingo reporting significant revenue growth, indicating a trend towards commercialization of AI applications in education [9]