Summary of Conference Call Records Industry Overview - The electronic fiberglass cloth industry is experiencing increased demand driven by AI servers and high-bandwidth switches, particularly in the context of Low-K fiberglass cloth applications in levels 6 and above, with specific usage depending on customer product design and performance requirements [1][3] - The current market for electronic fiberglass cloth is primarily focused on first-generation Low-K products, while second-generation products are used in niche markets. The PCB and CCL scrap issues have led to supply tightness, resulting in a high level of industry prosperity, with order visibility extending until the end of June [1][6] Key Insights - The demand for electronic fiberglass cloth in B200 chips and above is complex, with significant increases in the use of level 8 materials, but not all applications utilize second-generation Low-K materials, only specific scenarios like NVLink Sweet Spot boards and Arista 800G switches [1][5] - The upgrade of CACCO levels is not directly correlated with the use of electronic fiberglass cloth, as it requires analysis based on specific application scenarios, such as AI servers and GPU peripheral services [1][7] - Johnson & Johnson's sustained orders provide stable demand for the industry, with increased computational power expanding the application space for upstream Low-K materials. Domestic manufacturers are improving quality through mass production, giving them an advantage in domestic substitution [1][8] Company-Specific Developments - China National Materials Technology (中材科技) has made significant progress in the Low-K materials sector, with monthly shipments from its subsidiary Taibo increasing from 1 million meters to nearly 2 million meters, with expectations to reach 15 million meters in Q2 [4][9] - The company has reserves of specialty fiberglass products, such as quartz fiberglass cloth and low-expansion fiberglass cloth, which are expected to contribute to performance growth by 2026, with quarterly profit contributions from specialty fiberglass materials projected to rise from 30 million to 50 million [4][10] - Overall performance expectations for China National Materials Technology in 2025 are optimistic, with updated guidance indicating total performance around 1.8 billion, driven by significant growth in specialty fiberglass materials and recovery in wind power and military sectors [11][12] Future Outlook - In the coming years, China National Materials Technology is expected to achieve steady growth across multiple sectors, with an anticipated profit contribution of approximately 380-400 million by 2026. The company will continue to innovate through new product iterations to maintain competitiveness [12] - The electronic substrate sector is expected to see significant growth, supported by high demand for CACCO and PCB, making it one of the best-performing segments outside of wind power [13][14]

Core Insights - The company reported a total revenue of 1.48 billion yuan for 2024, a year-on-year decrease of 10.9%, while achieving a net profit attributable to shareholders of 91 million yuan, an increase of 138.0% [1] - In Q1 2025, the company generated a revenue of 320 million yuan, down 4.6% year-on-year, with a net profit of 34 million yuan, up 3.7% year-on-year, indicating stable operations [1] - The company’s international operations contributed significantly to profitability, with a notable growth in the dust-free air conditioning segment [1] Revenue Breakdown - For 2024, revenue by product showed clean air materials at 540 million yuan (-2.2%), energy-efficient materials at 780 million yuan (+19.1%), and dust-free air conditioning at 130 million yuan (-70.2%); the decline in dust-free air conditioning was primarily due to the exclusion of Youyuan Environment from consolidated financial statements, but it showed a 39.7% growth year-on-year when adjusted [1] - Revenue by region indicated domestic sales at 950 million yuan (-14.5%) and international sales at 490 million yuan (-5.6%); the gross margin for international sales increased by 5.6 percentage points to 35.7%, with a gross margin contribution of 54.3% [1] Profitability and Cost Management - The company maintained a stable gross margin despite weak downstream demand by optimizing product structure [2] - The expense ratios decreased, with sales expense ratio down by 0.3 percentage points to 3.0%, management expense ratio down by 0.6 percentage points to 6.2%, and financial expense ratio down by 0.4 percentage points to 0.8%; R&D expense ratio increased by 0.5 percentage points to 6.0% [2] - The reduction in impairment provisions by 35 million yuan year-on-year contributed to a significant improvement in net profit margin, which increased by 4.3 percentage points to 7.1% [2] Strategic Focus and Growth Potential - The company is strategically focused on dust-free air conditioning and continues to deepen its expertise in clean air materials, energy-efficient materials, and dust-free air conditioning products, indicating broad long-term growth potential [3] - The company has established itself as a leader in the fiberglass industry, achieving breakthroughs in various high-tech materials, which enhances its competitive edge [3] - The increasing consumer demand for quality living is expected to drive the penetration rate of dust-free air conditioning, with the company actively building its brand and channel [3] Earnings Forecast and Investment Outlook - The projected EPS for 2025-2027 is 0.10 yuan, 0.14 yuan, and 0.17 yuan, corresponding to PE ratios of 34x, 24x, and 20x respectively [3] - Given the company's strong competitive position and diverse growth drivers, a long-term growth outlook is favorable, with a target price of 4.20 yuan based on a 30x valuation for 2026, initiating coverage with a "buy" rating [3]

Core Viewpoint - The company reported strong financial performance in Q1 2025, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 4.48 billion, 730 million, and 740 million yuan respectively, reflecting year-on-year increases of 32.4%, 108.5%, and 342.5% [1] Financial Performance - Q1 2025 revenue was 4.48 billion yuan, with net profit attributable to shareholders at 730 million yuan, and net profit excluding non-recurring items at 740 million yuan, all exceeding the upper limit of the preliminary report [1] - The company's gross profit margin improved to 30.5%, up 10.4 percentage points year-on-year, driven by price recovery and cost control measures [2] - The net profit margin excluding non-recurring items reached 16.6%, an increase of 11.6 percentage points year-on-year [2] Market Demand and Pricing - Strong demand in mid-to-high-end sectors such as wind power and thermoplastics contributed to significant growth in the production and sales of yarn and electronic fabrics [1] - The average price of winding direct yarn (2400tex) increased by 22.8% year-on-year and 2.0% quarter-on-quarter in Q1 2025 [1] - Price increases for long-term contract products like wind power yarn (15-20%) and thermoplastic short-cut (10-15%) were successfully implemented in Q1 2025 [1] Cost Management - The company achieved effective cost control through formula optimization, energy consumption reduction, and workforce streamlining, leading to a decrease in the expense ratio by 2.8 percentage points year-on-year [2] - Inventory turnover days improved to 118 days, a reduction of 15 days from the end of 2024, indicating accelerated inventory reduction [2] Global Strategy - The company is well-positioned to mitigate tariff risks due to its global supply chain, with limited direct exports to the U.S. and alternative production capabilities in Egypt [2] - The company benefits from being a core supplier of fiberglass in China, with a significant portion of its production exported [2] Industry Outlook - The company anticipates continued recovery in industry profitability, supported by strong demand in downstream sectors such as wind power, new energy vehicles, and home appliances [3] - The company is set to increase production capacity with the commissioning of a new 200,000-ton line in Jiujiang, with the first phase already operational in Q1 2025 [3] Revenue and Profit Forecast - Projected revenues for 2025, 2026, and 2027 are 17.801 billion, 20.57 billion, and 22.984 billion yuan, representing year-on-year growth rates of 12.27%, 15.55%, and 11.74% respectively [3] - Expected net profits for the same years are 3.129 billion, 3.867 billion, and 4.395 billion yuan, with growth rates of 27.97%, 23.59%, and 13.66% respectively [3]

Core Insights - The company achieved a revenue of 4.5 billion yuan in Q1, representing a year-on-year growth of 32%, and a net profit attributable to shareholders of 730 million yuan, up 109% year-on-year, with a non-recurring net profit of approximately 740 million yuan, reflecting a 342% increase year-on-year [1] Group 1: Financial Performance - The company's Q1 gross profit margin was approximately 30.5%, an increase of 10.4 percentage points year-on-year, driven by both price increases and a decrease in production costs for raw yarn and electronic fabrics [2] - The company's net profit margin for Q1 was approximately 16.3%, up 6 percentage points year-on-year, indicating improved operational efficiency [2] - The company's asset-liability ratio decreased to around 40% by the end of Q1, showing a trend of financial improvement over the past two years [2] Group 2: Market Dynamics - The increase in sales volume was primarily driven by the domestic market, while export sales weakened due to political and economic influences in Europe and the United States [2] - The average price of direct yarn in Q1 increased by 23% year-on-year, while the average price of electronic fabrics rose by approximately 0.6 yuan per meter year-on-year [2] - The company is expected to benefit from the global demand for fiberglass, particularly in the wind power sector, with an anticipated increase in global fiberglass demand of over 600,000 tons this year [4] Group 3: Industry Outlook - The fiberglass industry is expected to see a slight improvement in overall profitability, with the wind power sector driving demand in the first half of the year [4] - The company is projected to maintain a competitive edge due to its resource advantages, product structure, and scale, with estimated net profits of approximately 3.4 billion yuan and 4.3 billion yuan for 2025 and 2026, respectively [4] - The company’s export volume is projected to be around 202,000 tons in 2024, with a 27% export ratio, indicating a broad distribution in the export market despite challenges from tariffs [3]

粗纱业务：销量两位数增长受益于风电高景气度，单季度吨盈利环比提升 测算公司 25Q1粗纱产品收入规模约36亿元，同比+29%，其中吨收入约4500元，同比+11%， 销量 80 万 吨，同比 + 16 %，环比 +4%，判断主要受益于风电、热塑短切、合股纱等产品销量增速较快，特别是风 电纱受益于风电行业抢装带来的高景气度； 测算粗纱产品扣非净利润约 6.2亿元，同比+292%，吨扣非净 利润接近800元，同比+238%，环比+16%。 点击注册小程序 查看完整报告 特别申明： 本订阅号中所涉及的证券研究信息由光大证券研究所编写，仅面向光大证券专业投资者客 户，用作新媒体形势下研究信息和研究观点的沟通交流。非光大证券专业投资者客户，请勿 订阅、接收或使用本订阅号中的任何信息。本订阅号难以设置访问权限，若给您造成不便， 敬请谅解。光大证券研究所不会因关注、收到或阅读本订阅号推送内容而视相关人员为光大 证券的客户。 报告摘要 事件： 中国巨石发布 202 5 年 一季报 。 2 5Q1 ，公司实现营业总收入 /归母净利润/扣非归母净利润分别为 45 / 7.3 / 7.4 亿元，同比 + 32 %/ +109 %/ ...

Core Viewpoint - The company reported significant growth in revenue and net profit for Q1 2025, driven by strong demand in the wind power sector and increased sales in electronic fabric products [2][5]. Group 1: Financial Performance - In Q1 2025, the company achieved total revenue of 4.5 billion yuan, a year-on-year increase of 32%, with net profit attributable to shareholders reaching 730 million yuan, up 109% [2]. - The company's net profit excluding non-recurring items was 740 million yuan, reflecting a substantial increase of 342% year-on-year [2]. Group 2: Business Segments - **Roving Business**: Revenue from roving products is estimated at 3.6 billion yuan, a year-on-year increase of 29%. The sales volume reached 800,000 tons, up 16% year-on-year, benefiting from the high demand in the wind power sector [3]. - The profit from roving products, excluding non-recurring items, is estimated at 620 million yuan, a year-on-year increase of 292%, with per-ton profit close to 800 yuan, up 238% year-on-year [3]. - **Electronic Fabric Business**: Revenue from electronic fabric is estimated at 750 million yuan, a year-on-year increase of 46%. The sales volume reached 250 million meters, up 33% year-on-year [4]. - The profit from electronic fabric, excluding non-recurring items, is estimated at 100 million yuan, with per-meter profit showing significant growth year-on-year [4]. Group 3: Future Outlook - The company anticipates continued growth in the roving business driven by increasing demand for wind power yarn, with expectations of improved supply-demand dynamics in the fiberglass industry [5]. - The company plans to enhance its production capacity in electronic fabric, with a new production line expected to commence construction in 2025 and be operational by 2026, which will increase annual production capacity to approximately 1.3 billion meters [4][5].