Summary of China Jushi Conference Call Company Overview - Company: China Jushi (Ticker: 600176.SS) - Industry: Greater China Materials - Market Cap: Rmb51,841 million - Current Stock Price: Rmb12.95 - Price Target: Rmb13.60, indicating a 5% upside potential [6][6] Key Takeaways Price Increases and Contracts - Price increases for wind power roving and thermal plastic products were announced in June last year, with full execution expected from January 1, 2025, due to annual contracts [2][2][8][8] - The price increase for wind power roving is reported to be greater than 10% [8][8] Production Adjustments - A 20% cut in electronic fabric capacity was implemented starting from Q4 2024, resulting in a reduction of approximately 80 million meters in total production [3][3] - All suspended capacity resumed production in March 2025, which is expected to improve utilization and cost efficiency, potentially lowering production costs by approximately Rmb0.2 per meter [3][3] Growth Expectations - The company anticipates a compound annual growth rate (CAGR) of 6-7% during the 15th Five-Year Plan, with plans for an additional 400,000 tons in Egypt and 100,000 tons in the US, alongside 1GW of renewable energy [4][4] Financial Projections - Revenue projections for the upcoming fiscal years are as follows: - FY24: Rmb18,057 million - FY25: Rmb19,618 million - FY26: Rmb21,211 million [6][6] - Expected earnings per share (EPS) for FY24 is Rmb0.54, with projections of Rmb0.67 for FY25 and Rmb0.90 for FY26 [6][6] Valuation and Risks - The valuation methodology is based on discounted cash flow with a weighted average cost of capital (WACC) of 7.1% and a steady-state growth rate of 4% [9][9] - Risks to upside include better-than-expected demand and decreasing raw material prices, while downside risks involve a global demand slowdown and rising raw material prices [11][11] Additional Insights - The company is focusing on cost reduction strategies to achieve a gross profit target of Rmb1 per meter for electronic fabric [8][8] - The average daily trading value of the stock is Rmb344 million, indicating active trading interest [6][6] This summary encapsulates the essential points discussed during the conference call, highlighting the company's strategic direction, financial outlook, and market positioning.
中国巨石：2024 财年业绩发布后非交易路演关键要点