Summary of China Jushi (600176.SS) Post 1H25 Results Group Meeting Company Overview - **Company**: China Jushi - **Industry**: Glass Fiber and E-fabric Key Points 1. Optimistic Outlook - Management remains optimistic about the 2026E outlook for glass fiber and E-fabric business, while catching up in the low-DK market, which is considered a minor segment with limited profit contribution [1][2] 2. Glass Fiber Market Dynamics - Stronger demand in 2025 driven by wind power and thermoplastics, despite low-end pricing pressures - Year-over-year growth observed in July-August, with a positive outlook for Q4 and 2026E - New demand from PV frame penetration expected to boost demand in 2026E - Jushi employs a strict "sell-what-you-produce" pricing strategy and is selectively exiting low-end market segments [2][3] 3. E-fabric Performance - Volume and price performance exceeded expectations this year - A second-round price hike was paused due to a drop in copper prices from Rmb80k to Rmb70k - Management remains positive on price outlook for 2026E [3] 4. Specialty Glass Fiber - The current market is in an early stage with demand exceeding supply - Sinoma S&T targets a capacity of 120 million tons, with the total market expected at 200 million tons - Jushi aims to achieve a 15% market share for new products by the end of the 15th Five-Year Plan [3] 5. Overseas Capacity Expansion - Current capacity stands at 50,000 tons, with an additional 50,000 tons planned as CNBM is set to build more facilities overseas - Overseas demand growth is primarily driven by Asia, with notable increases in Mexico, Canada, and the Middle East - European thermoplastic demand is soft due to EV slowdown, while U.S. and Egypt facilities may offset export limits from tariffs [4] 6. Capital Expenditure - 70-80% of capital expenditure is allocated to E-fabric this year - Guidance for 2026E is expected in early October [4] 7. Valuation and Target Price - Target price set at Rmb15/share, based on a price-to-earnings ratio of 19x on 2025E net income, indicating a recovery year following 2024's inflection point [7] 8. Risks - Major downside risks include weaker-than-expected demand for glass fiber products, rising energy costs, and greater-than-expected capacity additions - Upside risks include better-than-expected demand and supply-side discipline that could protect margins [8] 9. Financial Metrics - Current share price: Rmb14.840 - Target price: Rmb15.000 - Expected share price return: 1.1% - Expected dividend yield: 1.6% - Expected total return: 2.7% - Market capitalization: Rmb59,407 million (approximately US$8,321 million) [5] Additional Insights - The management's focus on maintaining a disciplined pricing strategy and selective market exits indicates a strategic approach to enhance profitability in a competitive landscape - The emphasis on overseas expansion and new product development aligns with global demand trends, particularly in renewable energy sectors This summary encapsulates the key insights from the conference call regarding China Jushi's performance and strategic outlook in the glass fiber and E-fabric industry.

Core Viewpoint - The low dielectric electronic fabric market is driven by the explosive growth of high-frequency and high-speed electronic products, particularly in 5G telecommunications, advanced computing, automotive electronics, and aerospace systems. The demand for materials that maintain signal integrity and reduce electromagnetic interference (EMI) is surging, with the global market expected to reach $530 million by 2031, growing at a CAGR of 18.7% from 2025 to 2031 [2]. Market Overview - Low dielectric electronic fabric is designed with low dielectric constant (Dk) and low loss factor (Df), making it essential for high-performance printed circuit boards (PCBs) used in high-frequency, high-speed, or RF/microwave electronic applications [1][2]. - The market is primarily dominated by the Asia-Pacific region, especially China, Japan, and South Korea, with significant contributions from companies like Taiwan Glass, Nittobo, and Taishan Fiberglass [1]. Market Size and Growth - According to QYResearch, the global low dielectric electronic fabric market is projected to reach $530 million by 2031, with a compound annual growth rate (CAGR) of 18.7% [2]. - The thin fabric segment currently holds the largest market share, accounting for approximately 50.8% of the total market [10]. Key Applications - The communication sector is the largest downstream market for low dielectric electronic fabric, representing about 43.6% of the demand [11]. Major Players - The leading manufacturers in the global low dielectric electronic fabric market include Nittobo, Taiwan Glass, Taishan Fiberglass, Fulltech, and AGY, with the top five companies holding around 97.0% of the market share as of 2024 [8].