International Fiber (301526) — Comment on 9M2025 Results
Steady Volume & Pricing; Waiting for LDK Scale-Up
Key Data Snapshot
| Metric | Value |
|---|---|
| Ticker | 301526.SZ |
| Rating | Buy (maintain) |
| Report date | October 29, 2025 |
| Price | RMB 6.78 |
| Total shares | 3.771 billion |
| Free-float A-shares | 1.404 billion |
| 52-week range | RMB 3.10 – 7.87 |
| Total market cap | RMB 25.567 billion |
| Total assets | RMB 21.780 billion |
| Book value per share | RMB 2.18 |
Earnings Forecast & Valuation
| Metric | 2024A | 2025E | 2026E | 2027E |
|---|---|---|---|---|
| Revenue (RMB bn) | 73.62 | 88.67 | 102.19 | 116.72 |
| Growth | 2.87% | 20.45% | 15.24% | 14.22% |
| Net profit to parent (RMB bn) | -3.54 | 4.52 | 9.00 | 12.93 |
| Growth | -164.88% | 227.80% | 98.99% | 43.62% |
| EPS (RMB) | -0.09 | 0.12 | 0.24 | 0.34 |
| ROE | -4.19% | 5.04% | 9.18% | 11.81% |
| P/E | -72 | 57 | 28 | 20 |
| P/B | 3.21 | 3.02 | 2.75 | 2.45 |
Investment Thesis
I. Strong 9M2025 results
First nine months of 2025:
- Revenue: RMB 6.413 billion, +19.01% YoY
- Net profit to parent: RMB 273 million, +273.53% YoY
2025 Q3 alone:
- Revenue: RMB 2.260 billion, +18.30% YoY
- Net profit to parent: RMB 42 million, +167.66% YoY
II. Compute demand; long runway for LDK
**Compute (Huawei Intelligent World 2035):**
- By 2035 vs. 2025, aggregate societal compute could grow 100,000×
- Intelligent storage demand 500×
LDK (low-Dk electronic glass fabric):
- AI servers — used in high-speed compute modules, data interfaces, etc., supporting reliable operation
- 5G — LDK glass fabrics for base-station antennas, RF/microwave PCBs; low latency & high reliability
III. Steady pricing; expense ratio improved
2025 Q3 profitability:
- Gross margin +1.55 ppt vs. 1H2025 to 18.22%
- +4.08 ppt YoY — clear recovery
Expense ratios:
- Sales / admin / R&D / finance ratios down 0.53 / 0.25 / 0.75 / 1.33 ppt YoY
- Combined expense ratio -2.85 ppt YoY
- Net margin +5.24 ppt YoY to 2.62%
IV. LDK optionality; technology & capacity
Industry:
- Fiberglass pricing steady and improving
- Appliances, wind, autos — traditional bulk markets stable to up
- Supply discipline; prices bottomed and recovered
Innovation:
- Focus on global application expansion; targeted R&D
- High-modulus, high-strength, low-Dk, low-CTE products
- LDK Gen1 & Gen2 low-Dk electronic fabrics launched
- Low-Dk glass fiber for 5G in volume production
Capacity:
- 85k-ton electronic-grade glass fiber line upgrade nearing start-up
- Legacy line optimization ongoing; efficiency, technology, and unit cost improving
Financial Analysis
Key ratios
| Metric | 2024A | 2025E | 2026E | 2027E |
|---|---|---|---|---|
| Gross margin | 12.57% | 17.95% | 21.68% | 24.56% |
| Net margin | -5.08% | 5.39% | 9.31% | 11.71% |
| ROE | -4.19% | 5.04% | 9.18% | 11.81% |
| ROA | -1.75% | 1.93% | 3.39% | 4.27% |
| Debt-to-assets | 58.14% | 61.80% | 63.09% | 63.81% |
Growth
| Metric | 2024A | 2025E | 2026E | 2027E |
|---|---|---|---|---|
| Revenue growth | 2.87% | 20.45% | 15.24% | 14.22% |
| Operating profit growth | -160.38% | 249.58% | 98.81% | 43.53% |
| Net profit growth | -163.18% | 227.80% | 98.99% | 43.62% |
| EBITDA growth | -47.73% | 91.51% | 34.23% | 21.80% |
Risks
- Macroeconomic volatility
- Market development below expectations
Source: Southwest Securities Research
