CJS(600176) 光大证券·2024-05-15 03:07Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The electronic fabric industry is expected to experience a favorable supply-demand balance in 2024, with price increases likely to enhance the profitability of leading companies [1][2]. - The demand for electronic fabrics is projected to maintain positive growth in 2024, driven by sectors such as computers, smartphones, and automotive electronics [1][35]. - The supply side is expected to contract, with no new capacity additions and some production lines undergoing cold repairs, leading to a supply shortage [1][37]. - The company, as a leading player in the electronic fabric market, is well-positioned to benefit from price increases, which could significantly boost its profit margins [1][42]. Summary by Sections Electronic Fabric Demand Side - The demand for electronic fabrics is anticipated to grow positively in 2024, particularly in the mid-to-low-end PCB market, with key applications in computers, communication devices, automotive electronics, and consumer electronics [1][14]. - According to Prismark, the PCB market is forecasted to reach a value of $72.9 billion in 2024, representing a year-on-year growth of 5% [1][33]. Electronic Fabric Supply Side - The electronic fabric supply is expected to contract in 2024, with no new production capacity and some existing lines undergoing cold repairs, indicating a potential supply shortage [1][37]. - The report highlights that the electronic fabric industry may experience a supply-demand imbalance, leading to sustained price increases [1][37]. Profitability of Leading Companies - The company’s electronic fabric business is currently at a cyclical low, with significant potential for profit growth as prices increase [1][42]. - As of May 10, 2024, the price of G75 electronic yarn is approximately 8,800 yuan per ton, with potential price increases projected to enhance the company's annual net profit significantly [1][44]. - The report estimates that the company will achieve a non-GAAP net profit of 22.8 billion yuan from coarse yarn and 4.1 billion yuan from electronic yarn in 2024 [2][44].