Yuanta Securities: China Giant Stone's semi-annual performance has increased significantly, plans to expand capacity, and recommends "buying".

Yuanta Securities research report pointed out that the performance of China Jushi in the semi-annual report has grown significantly, and the company plans to expand its production capacity, so the recommendation is to "buy". It is expected to achieve a net profit of 2.78-3.12 billion yuan in the first half of the year, a year-on-year increase of 65%-85%, equivalent to an EPS of 0.7-0.78 yuan. The company's performance meets expectations. The significant growth in the company's performance in the first half of the year is mainly due to the simultaneous increase in the quantity and price of electronic cloth products. The company is the leading company in the glass fiber industry, with the largest production capacity in the world. It has established 6 major production bases in China, Egypt, and the United States, and has established a sales network covering the major consumer markets globally. Due to the continuous increase in the price of electronic cloth, the company's performance in the first half of the year has grown significantly. Due to strong demand, the company continues to increase its production capacity of electronic cloth. It is expected that the company will release a production capacity of 570 million meters of electronic cloth from the fourth quarter of 2027 to the first quarter of 2028, with a total production capacity increase of 42% after full production.