Continue to be bullish on building materials golden stock – 中国巨石

English summary

The company is the global leader in the fiberglass industry, with technological and cost advantages forming a deep moat. It has the world's largest production capacity, and through super large-scale tank furnace technology, high-performance glass formulations and sizing formulations, six major production bases, and self-sufficiency in key raw materials, it has built an insurmountable cost advantage, enabling stable profitability while increasing market share even during industry downcycles, and capturing maximum profits during upcycles. In the short term, ordinary electronic cloth is expected to continue raising prices, and the PE valuation based on annualized profit is relatively cheap. The company recently announced interim results (deducting non-recurring items) with net profit of RMB 2.807 billion to RMB 3.147 billion, up 65% to 85% year-on-year. After the broad price increase in electronic cloth in early July, the company's annualized profit is close to RMB 9-10 billion. Currently, market inventory is low, and price increases in August are highly probable. If the increase is consistent with July, annualized profit is expected to reach about RMB 11 billion, and the current market cap corresponds to a PE valuation of only 14 times; …