CJS(600176) 光大证券·2025-04-24 10:25Investment Rating - The report maintains a "Buy" rating for China Jushi (600176.SH) with a target price of 12.00 CNY [6]. Core Views - In Q1 2025, China Jushi reported total revenue of 4.5 billion CNY, a year-on-year increase of 32%, and a net profit attributable to shareholders of 730 million CNY, up 109% year-on-year [1]. - The growth in sales volume is driven by the high demand in the wind power sector, particularly for wind power yarn, which has seen a significant increase in sales [2]. - The electronic fabric business also experienced substantial growth, with revenue reaching approximately 750 million CNY, a 46% increase year-on-year [3]. - The outlook for 2025 emphasizes the importance of wind power yarn demand and the progress of new production capacity in the electronic fabric industry [4]. Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved total revenue of 4.5 billion CNY, with a net profit of 730 million CNY and a non-recurring net profit of 740 million CNY, reflecting increases of 32%, 109%, and 342% respectively year-on-year [1]. - The gross profit margin for the company is projected to improve, with expectations of price increases for certain long-term contract products in 2025 [4]. Business Segments - Roving Yarn Business: Revenue from roving yarn products is estimated at 3.6 billion CNY, a 29% increase year-on-year, with a sales volume of 800,000 tons, up 16% year-on-year [2]. - Electronic Fabric Business: Revenue from electronic fabric is estimated at 750 million CNY, a 46% increase year-on-year, with a sales volume of 250 million meters, up 33% year-on-year [3]. Future Outlook - The report highlights that the core variable for the roving yarn industry in 2025 will be the demand for wind power yarn, driven by rapid growth in new wind power installations [4]. - The company is expected to maintain its net profit forecasts for 2025-2027, with a dynamic P/E ratio of 14x for 2025 [4].