| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.66 | -3 |
| Intrinsic value (DCF) | 5.87 | -73 |
| Graham-Dodd Method | 5.11 | -76 |
| Graham Formula | 8.82 | -59 |
China Jushi Co., Ltd. (600176.SS) is a leading global manufacturer of fiberglass and fiberglass fabrics, headquartered in Tongxiang, China. As a key player in the basic materials sector, the company produces a comprehensive range of reinforcement fiberglass products including E-glass and C-glass rovings, chopped strands, mats, and woven rovings. These materials serve critical applications across diverse industries such as construction materials, infrastructure development, transportation, aerospace, electronics, and environmental protection. With a distribution network spanning approximately 80 countries across North America, Europe, the Middle East, Southeast Asia, and Africa, China Jushi has established itself as a dominant force in the global fiberglass market. The company's extensive product portfolio and international reach position it as an essential supplier to multiple industrial sectors, contributing significantly to China's materials science and advanced manufacturing capabilities while serving global sustainability initiatives through energy-efficient and corrosion-resistant solutions.
China Jushi presents a mixed investment profile with several attractive fundamentals offset by notable risks. The company demonstrates solid profitability with CNY 2.44 billion net income on CNY 15.86 billion revenue, representing a healthy 15.4% net margin. Strong operating cash flow of CNY 2.03 billion supports operations, though substantial capital expenditures of CNY 1.30 billion indicate ongoing investment in capacity. The moderate beta of 1.049 suggests market-aligned volatility. However, investors should note the relatively high debt load of CNY 10.15 billion against cash reserves of CNY 3.12 billion, creating some financial leverage concerns. The company's global reach across 80 countries provides diversification benefits but also exposes it to international trade tensions and currency fluctuations. The dividend yield appears reasonable but must be evaluated in the context of the company's capital-intensive nature and debt obligations.
China Jushi maintains a strong competitive position as one of the world's largest fiberglass manufacturers, benefiting from significant economies of scale and vertical integration. The company's competitive advantages include its extensive product portfolio covering both E-glass and specialized C-glass products, which allows it to serve multiple end markets from construction to aerospace. Its global distribution network spanning 80 countries provides market diversification and reduces dependence on any single region. China Jushi's location in China offers cost advantages in raw material sourcing and manufacturing, though this also exposes it to potential trade barriers. The company's technical capabilities in producing specialized fiberglass products for demanding applications like aerospace and chemical anti-corrosion create barriers to entry for smaller competitors. However, China Jushi faces intensifying competition from both Western manufacturers with stronger technological capabilities in high-end applications and emerging Asian producers with lower cost structures. The capital-intensive nature of fiberglass production means scale is critical, which works to China Jushi's advantage, but also requires continuous investment to maintain technological competitiveness. Environmental regulations and sustainability concerns present both challenges and opportunities as the company navigates increasing focus on green building materials and energy-efficient solutions.