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.

Summary of Expert Call on China Glassfiber Cycle Watch Industry Overview - The glass fiber industry is primarily dominated by China, which accounts for over 50% of global capacity. [2] - Major players include Jushi with a market share of 27%, Taishan GF at 12%, and CPIC at 10%, collectively holding around 50% of the market. [2] Supply and Demand Dynamics - As of June 2025, operating capacity reached 8.4 million tons (mt), with full-year production expected to be approximately 8 mt. [2] - Domestic production in the first half of 2025 increased by 10.5% year-over-year (YoY). [2] - Leading producers have shifted their product focus, with over 60% of their output now high-end products, primarily serving the wind power, thermoplastics, and construction sectors. [2] Import and Export Trends - Import volume for the first five months of 2025 rose by 2% YoY, with a preference for high-end products. [3] - Exports declined by 3% YoY, particularly in Europe and the US, while markets in the Middle East, Japan, and Korea saw increases. [3] Inventory and Market Conditions - Price increases at the beginning of the year did not stimulate market demand, leading to effective destocking efforts by manufacturers. [4] - Inventory levels rose gradually in the second quarter, with leading producers experiencing less inventory pressure compared to tier 2 and tier 3 producers. [4] Consumption and Profitability - Apparent consumption for the full year is estimated to exceed 6 mt, reflecting a 13% YoY increase, driven mainly by demand from wind power and thermoplastics. [5] - Wind power installations in 2025 are projected to reach 140 gigawatts (GW), a 75% increase YoY. [5] - Average gross profit per ton in the first half of 2025 was a net loss of RMB 263, with leading producers remaining above the break-even line while tier 2 and tier 3 producers incurred losses. [5] Price Forecast and Market Outlook - Glass fiber prices are expected to remain weak in August, with potential increases in September and October to around RMB 3,500 per ton, before possibly falling to approximately RMB 3,000 per ton by the end of the year. [7] - Low-Dk fabric is identified as a structural bright spot, offering profits approximately ten times higher than normal E-fabric, with a short-term supply gap still present. [7] Key Insights - The glass fiber market is currently at a low point, but differentiated advantages are anticipated to emerge among leading producers. [1] - The shift towards high-end products indicates a strategic response to evolving market demands, particularly in renewable energy sectors. [2][5] - The overall profitability challenges faced by tier 2 and tier 3 producers highlight the competitive pressures within the industry. [5]