Summary of China Jushi (600176.SS) 2025 Results Presentation Company Overview - **Company**: China Jushi - **Industry**: Electronic Fabric and Glass Fiber Products Key Highlights 1. **E-fabric Supply Tightness**: - Standard electronic fabric and grade 7628 are in tight supply with management not expecting a quick easing due to limited new capacity and solid downstream demand from sectors like AI, EVs, and electronics upgrades [1][2][3] 2. **Pricing Strategy**: - Management plans to improve pricing in a disciplined manner, avoiding aggressive hikes while ensuring reasonable pricing acceptable to the supply chain [2] 3. **Structural Tightness in 7628**: - The tightness in 7628 is attributed to structural supply constraints rather than short-term restocking, indicating a longer-term issue in the supply chain [3] 4. **Demand Drivers**: - Continued strong demand from AI servers, intelligent devices, EVs, and energy storage is supporting the PCB and upstream electronic fabric markets [3] 5. **Slow Supply Response**: - Limited capacity additions, inefficiencies in high-end equipment, and immature domestic equipment substitution are contributing to a slow supply response in the market [4] 6. **Specialty Electronic Fabric Development**: - Progress is being made in four specialty product directions, with some products entering sample development and small-batch production, although commercialization timing remains uncertain [4] 7. **Roving Market Outlook**: - A positive outlook for 2026-27 is anticipated for roving, driven by constrained supply rather than a sharp demand rebound [5] 8. **High Platinum Prices**: - Elevated platinum prices are increasing the cost of new kiln investments, which is expected to slow industry capacity expansion over the next two years [5] 9. **Overseas Operations**: - Management is optimistic about overseas operations improving in 2026, particularly in wind energy, Southeast Asia, and India, while Europe remains a concern due to weaker demand and external pressures [9] Financial Metrics - **Current Share Price**: Rmb22.650 - **Target Price**: Rmb26.100 - **Expected Share Price Return**: 15.2% - **Expected Dividend Yield**: 1.5% - **Expected Total Return**: 16.8% - **Market Capitalization**: Rmb90,671 million (approximately US$13,140 million) [7] Risks 1. **Downside Risks**: - Weaker-than-expected demand for glass fiber products, rising energy costs, and greater-than-expected capacity additions could negatively impact share prices [11] 2. **Upside Risks**: - Better-than-expected demand and supply-side discipline that protects margins could positively influence share prices [11] Conclusion - Overall, China Jushi's management maintains a constructive outlook, particularly regarding electronic fabric, while navigating challenges in supply constraints and pricing strategies. The company is positioned to benefit from ongoing demand in key sectors, although risks remain that could affect performance.

Summary of China Jushi 3Q25 Post Result Call Company Overview - **Company**: China Jushi (Ticker: 600176.SS) - **Industry**: Greater China Materials - **Market Cap**: Rmb63,129.5 million - **Current Share Price**: Rmb15.77 (as of October 24, 2025) - **Price Target**: Rmb19.20 - **Stock Rating**: Overweight Key Takeaways Capacity and Production - Limited capacity increases are expected in 2026, including: - 200kt new capacity in Huai'an starting mid-2026 - 60kt incremental capacity from the upgrade of the Tongxiang line - 100kt new electronic fabric capacity in Huai'an commencing in 2026 - Construction of 200kt capacity in Chengdu expected to start late 2025 or early 2026 - Overall supply increase for 2026 will be limited due to maintenance on the 180kt line in Tongxiang and potential maintenance in Egypt [2][4] Product Development - High-end electronic fabric is projected to reach commercial production in 1Q26 - Generation one and two low-dielectric electronic fabric products are under innovation, with generation 1 products currently in the certification process [3] Financial Performance - Net profit per ton (NP/t) slightly decreased QoQ in 3Q25 to over Rmb800/t, attributed to lower earnings from Europe and the US - Roving sales volume increased by 10% YoY to 809.7kt, while electronic fabric sales volume surged 73% YoY and 24% QoQ to 294 million meters - The percentage of overseas sales volume decreased to approximately one-third, mainly due to softened demand from the EU [4][8] Market Demand - Demand for solar modules is increasing but at a slower pace, with expectations to surpass 3GW in 2026 compared to around 2GW in 2025 - The slow demand increase is attributed to intense competition with aluminum frame producers, as aluminum is recyclable [4] Pricing and Costs - Average selling prices (ASP) for roving and electronic fabric increased by 6% YoY and 5% YoY, but slightly dropped QoQ due to higher industry supply - Costs declined in 3Q25 due to technical upgrades rather than management expense cuts - Price increases are anticipated in 2026 to counteract potential higher costs, including labor and raw material prices [8] Risks and Considerations - **Upside Risks**: - Better-than-expected demand - Decreasing raw material prices - **Downside Risks**: - Global demand slowdown - Rising raw material prices - Industry overcapacity [11] Conclusion China Jushi is positioned for moderate growth with planned capacity expansions and product innovations. However, the company faces challenges from competitive pressures and fluctuating demand in key markets. The financial outlook remains cautiously optimistic, supported by strong sales volumes and strategic pricing adjustments.

Investment Rating - The investment rating for China Jushi is "Overweight" [4] - The industry view is considered "Attractive" [4] Core Insights - China Jushi expects its net profit for the first half of 2025 to increase by 72-77% year-on-year, reaching between Rmb1.65 billion and Rmb1.70 billion, with the second quarter net earnings projected to be between Rmb920 million and Rmb970 million, surpassing market expectations of Rmb815 million [1][2] - The increase in earnings is attributed to higher sales volumes for both roving and electronic fabric, which grew by 4% and 6% year-on-year, respectively, alongside price increases of approximately 11% for traditional roving and around 15% for electronic fabric [1][2] Summary by Sections Financial Performance - In 1H25, sales volumes reached 1.59 million tons for roving and 485 million meters for electronic fabric [1] - The company anticipates solid earnings in 2H25 despite potential near-term price pressures due to increased market supply from new capacities and resumed production [2] Market Outlook - The report indicates that strong demand in 1H25 has led to the introduction of new capacities totaling 780,000 tons, which may exert downward pressure on roving prices in the near term [2] - However, the improved product structure and cost performance are expected to mitigate the impact of subdued prices on earnings [2] Valuation Metrics - The price target for China Jushi is set at Rmb14.50, indicating a 19% upside from the current price of Rmb12.17 [4] - The market capitalization is currently Rmb48.72 billion, with an average daily trading value of Rmb312 million [4]