China Jushi Co Ltd

China Jushi released a positive profit alert on October 9, expecting attributable net profit for the first three quarters of 2026 to reach 5.136 billion to 5.393 billion yuan, an increase of 2.568 billion to 2.825 billion yuan compared with the same period last year, up 100% to 110% year-on-year. The company also expects attributable net profit excluding non-recurring items to be 5.225 billion to 5.486 billion yuan, likewise up 100% to 110% year-on-year. The main reason for the expected profit growth is that demand in major downstream application areas for fiberglass increased in the first three quarters of 2026, with both product volume and prices rising. The company improved profitability by accelerating product structure optimization, strengthening technological innovation, and expanding market development. In the first half of this year, China Jushi already achieved revenue of 11.159 billion yuan, up 22.5% year-on-year, and attributable net profit of 2.933 billion yuan, up 73.9% year-on-year. In the secondary market, the stock rose from around 10 yuan to more than 77 yuan since last year, then entered a pullback. The latest price is 38.57 yuan, roughly halved from its high point in June this year.

On the evening of October 9, multiple listed companies released announcements including earnings forecasts, equity transactions, and contract wins. On the earnings front, Hongfuhan expects net profit attributable to shareholders of the listed company for the first three quarters of 2026 to be between 170 million yuan and 200 million yuan, up 108.19% to 144.93% year on year, driven mainly by mass production and delivery of liquid cooling plate cabinet module business, gradual release of production capacity, and steady expansion in sales of traditional businesses such as precision functional components for consumer electronics. Jingwang Electronics expects third quarter 2026 net profit of 912 million yuan to 1.089 billion yuan, up 205.46% to 264.74% year on year, mainly because mass production shipments of high-performance PCBs accelerated in high-speed communications and AI data infrastructure. China Jushi expects first three quarters net profit of 5.136 billion yuan to 5.393 billion yuan, up 100% to 110% year on year, as downstream demand for fiberglass increased and both volume and prices rose. On equity and regulatory matters, Lion Micro intends to acquire a 3.6221% stake in Jinruihong Microelectronics through public listing at a floor price of 269 million yuan, raising its direct shareholding from 57.4403% to 61.0624%. Hainan Mining's controlling shareholder Fosun High Technology plans to transfer shares equivalent to 5% of total share capital by agreement at 9.08 yuan per share, for a total consideration of 901 million yuan. ST Nachuan has been placed on file for investigation by the China Securities Regulatory Commission over suspected illegal information disclosure in its 2023 annual report, and Yu Faxiang, the actual controller of Jiaojian and Xiangyuan Cultural Tourism, has also been placed on file for investigation by the CSRC over suspected illegal information disclosure. On orders, Jinguan Electric's wholly owned subsidiary signed an EPC framework contract for solar storage and charging projects worth no more than 296 million US dollars. Huitong Technology won a 366 million yuan contract for procurement and installation of polyester and utility equipment. Wuhan Tianyuan signed a 195 million yuan energy storage power station project contract. Weihai won a 162 million yuan flood control project for the Tiaoxi River. Wonders Information won a 114 million yuan system entrusted operation and maintenance service contract. In addition, Angelalign plans to repurchase company shares for 35 million yuan to 70 million yuan. Baiyunshan and Zhongsheng Pharmaceutical each obtained drug registration certificates. Baotou Steel plans to adjust the related-party transaction price for rare earth concentrate in the fourth quarter of 2026 to 38,769 yuan per ton excluding tax.

On the evening of October 9, multiple listed companies on the Shanghai and Shenzhen exchanges released positive announcements. Kinwong Electronic expects net profit attributable to owners of the parent in the third quarter of 2026 to be between 912 million and 1.089 billion yuan, up 205.46% to 264.74% year on year and up 147.20% to 195.18% quarter on quarter. China Jushi expects net profit attributable to shareholders of the listed company for the first three quarters of 2026 to be between 5.136 billion and 5.393 billion yuan, up 100% to 110% year on year. Hongfuhan expects net profit for the same period to be between 170 million and 200 million yuan, up 108.19% to 144.93% year on year. In mergers and acquisitions, Zerun New Energy plans to acquire no less than 51% equity in Hechuang Intelligent Manufacturing with cash, with the total consideration initially not exceeding 204 million yuan, as a way to quickly enter the thermal management sector. Aerospace Engineering's controlling subsidiary Aerospace Hydrogen Energy plans to acquire a 45% stake in Xinxiang Gas with 191 million yuan of its own funds, raising its shareholding from 55% to 100%. In addition, Li'ang Micro plans to acquire a 3.6221% stake in Jinruihong Microelectronics through public bidding, with a floor price of 269 million yuan, raising its direct shareholding from 57.4403% to 61.0624%. Yuguang Gold and Lead's semiconductor optoelectronic new materials technology industrialization base project is in the preliminary preparation stage, and Daqo Energy has initiated research and development projects around new energy storage equipment and solid-state transformers.

On October 9, all three major A-share indices closed higher, with total market turnover of 1.92 trillion yuan, an increase of 222.4 billion yuan from the previous trading day. More than 3,200 stocks closed higher, including 72 at the daily limit. Evening announcements showed that ST Nachuan, stock code 300198, was placed under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure in its 2023 annual report, and Yu Faxiang, the actual controller of Xiangyuan Cultural Tourism, was also placed under investigation by the CSRC. Dragon-Tiger list data showed that institutional seats appeared in 67 stocks this week, with net buying in 38 stocks and net selling in 29. Among them, 22 stocks saw net institutional buying exceeding 10 million yuan each, and 10 stocks including Jones Tech and OGAWA saw net institutional buying exceeding 50 million yuan each. The largest net buying was in Jones Tech, with total net institutional buying of 332 million yuan, while Yuanjie Technology saw the largest net institutional selling of 1.436 billion yuan. In terms of earnings forecasts, Kinwong Electronic expects third-quarter net profit to rise 205 to 265 percent year on year, Hongfuhan expects net profit for the first three quarters to rise 108 to 145 percent year on year, and China Jushi expects net profit for the first three quarters to rise 100 to 110 percent year on year. In addition, Avolon, a controlled subsidiary of Bohai Leasing, plans to purchase 140 B737 MAX series aircraft from Boeing through its subsidiaries, with a total value not exceeding 26.953 billion US dollars. Mengke Pharmaceutical signed an exclusive license and platform cooperation agreement with ClearideBio for MRX-23, with milestone payments and other amounts capped at 750 million US dollars in total.

Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical and other companies announced that from October 1, 2026, new photoresist pricing for global customers will be raised by 15% overall, with high-end ArF series long-term contract quotes up 16% to 22%, HBM-specific immersion ArF up as much as 24%, spot bulk orders up 32% to 38%, KrF series standard grades up 9% to 14%, and 3D NAND thick-film KrF up 18% to 20%. Boosted by the price hike news, the electronic chemicals sector remained strong all day. Xilong Scientific surged to limit up with heavy volume shortly after the midday open, hitting a two-month high, with turnover in less than 15 minutes exceeding the entire previous day's total. Haixing shares climbed rapidly on late-session volume, while Guangxin Materials and Zhongshi Technology also showed unusual upward moves during the session. Also lifted by the price hike news, the glass fiber sector index has risen for seven consecutive days, with Honghe Technology up for seven straight days, and China Jushi, International Composites and Sinoma Science & Technology all up for five consecutive days. The latest data from Sublime China Information shows that as of September 15, the ex-factory price of 7628 electronic fabric was about 11.5 to 12.1 yuan per meter, up 10% to 20% month on month, with the year-to-date gain reaching as high as 162%.

China Jushi released its 2026 interim report, with net profit attributable to the parent company of 2.933 billion yuan, up 73.87% from the same period last year. Total operating revenue was 11.159 billion yuan, up 22.50% year on year. Net cash inflow from operating activities was 2.424 billion yuan, up 68.23% year on year. The latest gross margin was 42.14%, an increase of 9.93 percentage points from the same period last year. Diluted earnings per share were 0.74 yuan, up 75.39% year on year.

China Jushi announced that its wholly-owned subsidiaries Lianshui New Energy and Jushi Huai'an plan to adjust the implementation plan for the 500MW wind power supporting project. Under the new plan, the construction scale is adjusted to 496MW, of which Lianshui New Energy accounts for 358.5MW and Jushi Huai'an for 137.5MW. Total investment increases from 2.199 billion yuan to 2.393 billion yuan, with Lianshui New Energy investing 1.724 billion yuan and Jushi Huai'an investing 668 million yuan. The estimated total investment return rate after project completion is 15.62%. This change is conducive to achieving direct physical supply of green electricity, reducing electricity costs, and enhancing green manufacturing standards. The project still requires approval from relevant government departments and is subject to certain uncertainties.

China Jushi announced that its wholly owned subsidiary Jushi Group plans to carry out cold repair and technical upgrade of an 180,000-tonne-per-year alkali-free tank furnace drawing production line at the Tongxiang production base. The total project investment is 960 million yuan, funded by self-owned funds and bank loans. After the cold repair is completed, the production line capacity will be raised from 180,000 tonnes to 200,000 tonnes per year, with a construction period of one year. Upon completion of the upgrade, the expected total return on investment is 14.19%.

A recent in-depth supply chain survey by Cailian Press found that surging AI server demand combined with tight industry capacity is intensifying the supply crunch for upstream PCB base materials, electronic yarn and electronic fabric. High-end electronic yarn remains extremely hard to source, and some manufacturers are shifting capacity toward high-margin categories such as ultra-thin fabric, extremely thin fabric, and specialty fabric, causing spot shortages and price increases even for ordinary electronic fabric. In the first half of this year, the electronic fabric industry completed five rounds of price increases. Thick fabric prices have now doubled from the end of last year. Data from Zhuochuang Information show that in August, the mainstream market average price of domestic G75 electronic yarn rose to 19,700 to 20,000 yuan per tonne, up nearly 53 percent from the end of May. The mainstream transaction price of traditional 7628 electronic fabric rose to 10 to 10.2 yuan per metre, a month-on-month increase of 17 to 18 percent. Cumulative gains this year for thin and ultra-thin fabrics such as 2116 and 1080 have exceeded 140 percent. Liu Yang, an analyst at Zhuochuang Information, said that under the siphon effect of AI demand, leading companies are proactively cutting conventional 7628 electronic fabric capacity and shifting to thin fabric and low-dielectric high-frequency specialty fabric, creating a situation where the supply-demand gap for conventional fabric is widening while high-end specialty fabric is severely out of stock. The industry is currently in a state of almost zero inventory. In response, listed companies including China Jushi, Sinoma Science and Technology, CPIC, Jujie Microfiber, and Goldenmax International Technology are accelerating capacity deployment. Quartz fiber electronic fabric, known as Q fabric, which suits high-frequency and high-speed application scenarios, is the main deployment direction. Among them, Feilihua is expected to achieve sales revenue of 150 million yuan from quartz electronic fabric in the first half of this year, and Honghe Technology's Q fabric has passed downstream customer certification and already has small-volume sales. Many interviewees believe that as the AI computing infrastructure wave continues, short-term supply of PCB upstream base materials such as electronic yarn and electronic fabric will remain tight. Because new capacity takes a long time to come online, combined with cost support and downstream demand resonance, product prices are expected to rise further.

China Jushi released its 2026 semi-annual report, achieving operating revenue of 11.159 billion yuan, up 22.5% year on year, and net profit attributable to shareholders of the listed company of 2.933 billion yuan, up 73.87% year on year. The profit growth was mainly due to higher product sales volume and rising prices during the reporting period. The company plans to distribute a cash dividend of 3.30 yuan per 10 shares, tax included. Second-quarter net profit was 1.666 billion yuan, up 31% quarter on quarter from 1.267 billion yuan in the first quarter.

On the evening of July 15, a number of listed companies on the Shanghai and Shenzhen exchanges issued announcements. Biwin Storage expects to achieve a net profit attributable to the parent of 7 billion to 7.5 billion yuan in the first half of 2026, swinging from a loss to a profit year-on-year, mainly benefiting from the explosion of AI computing power and the high prosperity cycle of the storage industry. Shijia Photonics plans to raise no more than 2.8 billion yuan through a private placement for projects including the construction of production capacity for high-speed AWG chips and optical interconnect components. China Jushi plans to invest 2.405 billion yuan to build an electronic fabric production line with an annual output of 250 million meters. Unisplendour Corporation's holding subsidiary Unisplendour Computer will introduce investors through a capital increase and share expansion, after which Unisplendour Computer will no longer be included in the company's consolidated financial statements. Jingce Electronic plans to acquire a 41.17% stake in Shanghai Jingce, and after the transaction, Shanghai Jingce will become its wholly-owned subsidiary; the company's shares and convertible bonds will resume trading on the 16th. Chaozhuo Aviation Technology's shares will be suspended from trading on the 16th due to the controlling shareholder planning a major event that may lead to a change in control. In terms of performance, Konfoong Materials International expects its net profit attributable to the parent in the first half to increase by 89.99% to 121.65% year-on-year; Anlogic Infotech expects operating revenue to increase by 83.57% to 101.48% year-on-year; Penghui Energy expects to swing from a loss to a profit with a net profit of 800 million to 866 million yuan; while Guanghui Logistics expects its net profit to decline by 94.62% to 96.16% year-on-year. In addition, Youcai Resources disclosed the first half-year report for A-shares in 2026, with net profit attributable to the parent in the first half increasing by 103.87% year-on-year, and plans to distribute a cash dividend of 2 yuan for every 10 shares.

On July 10, the glass and fiberglass concept rose 3.54% intraday. Among related constituent stocks, Almaden rose 10.03%, Sanxia New Building Materials rose 9.84%, International Composites rose 8.26%, Kibing Group rose 5.41%, and China Jushi rose 4.94%. SDIC Securities pointed out that entering 2026, the overall supply-demand balance in the fiberglass roving industry is controllable, and corporate competitive strategies generally show a trend of co-opetition outweighing competition. It is estimated that demand in 2026 will be 8.02 million tons, a year-on-year increase of 6.26%, while total effective production capacity on the supply side will be approximately 8.06 million tons, with a net addition of 520,000 tons. The supply growth rate has clearly slowed, and coupled with the gradual implementation of multiple rounds of price increases in the earlier period, there is room for further improvement in industry profitability. Southwest Securities noted that the fiberglass industry has both cyclical and growth characteristics, with a positive long-term growth trend. It is estimated that the year-on-year growth rates of global glass fiber demand from 2025 to 2027 will be 5.1%, 6.8%, and 7.9% respectively. The downstream demand structure continues to optimize, accelerating its expansion from traditional construction sectors to emerging fields such as wind power, new energy vehicles, and electronics and electrical applications. Among these, the demand for high-performance electronic fabrics driven by AI computing power, 5G communications, and automotive intelligence is showing explosive growth, becoming the core main line of profit growth.

The Bosera Resources ETF surged 3.00% intraday, with its latest price at 1.96 yuan, while the SSE Natural Resources Index it tracks jumped 2.99%. Among constituents, Western Gold rose 10.02%, Chifeng Gold gained 10.00%, and China Jushi climbed 10.00%. In the first half of 2026, the resources sector underwent a deep correction, with precious metals seeing a maximum drawdown of nearly 30% during the year and silver plunging over 50%, significantly boosting the sector's margin of safety. East Money Securities noted that as countries add resources like copper to critical minerals lists, supply-side rigid constraints combined with demand-side drivers such as energy transition and AI data center construction are likely to reinforce the strategic asset attributes of non-ferrous metals.