Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [15]. Core Views - The company is positioned to benefit significantly from the cyclical upturn in the sewing industry, with a projected revenue growth of 15% in 2024 and a substantial increase in net profit by 51% [4][9]. - The company has successfully implemented a "focus on explosive products" strategy, enhancing its market share and brand competitiveness through technological advancements and strategic partnerships [6][10]. - The global sewing equipment market is experiencing a recovery, with notable growth in both domestic and international demand, particularly in emerging markets [8][9]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 60.94 billion yuan, a year-on-year increase of 15.11%, and a net profit of 8.12 billion yuan, up 50.86% [4]. - The fourth quarter of 2024 saw a revenue of 13.87 billion yuan, reflecting a 16.21% year-on-year growth, with net profit reaching 1.93 billion yuan, a 53.03% increase [4]. Growth Drivers - The company’s industrial sewing machine sales reached 2.1211 million units in 2024, marking an 8.10% increase, with revenue from this segment at 5.264 billion yuan, up 14.69% [10]. - The company has signed contracts with 10 world-class benchmark clients, further promoting its high-end market expansion [6]. Profitability Metrics - The gross margin for 2024 was 32.76%, an increase of 4.34 percentage points year-on-year, while the net margin improved to 13.57%, up 3.37 percentage points [6]. - The company’s R&D expenses were 488 million yuan in 2024, a 23.67% increase, reflecting its commitment to innovation and product development [7]. Market Outlook - The global sewing machinery export value reached 3.424 billion USD in 2024, a year-on-year increase of 18.39%, indicating a recovery to near 2022 levels [8]. - The domestic market for industrial sewing equipment is estimated to have grown by 27% in 2024, with a total sales volume of approximately 2.35 million units [8].

Investment Rating - The investment rating for the company is "Buy" with a target price of 38.40 RMB [7][8]. Core Views - The company achieved a revenue of 6.09 billion RMB in 2024, a year-on-year increase of 15%, and a net profit attributable to the parent company of 810 million RMB, up 51% year-on-year, aligning with previous performance forecasts [1][5]. - The company is expected to benefit from the release of high-end AI products and an increase in market share, particularly with the upcoming launch of a high-end AI sewing machine [1][4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 1.387 billion RMB, a 16% increase year-on-year, and a net profit of 193 million RMB, up 53% year-on-year [1]. - The gross margin for 2024 was 32.76%, and the net margin was 13.57%, reflecting improvements of 4.34 and 3.37 percentage points year-on-year, respectively [3]. Product Segmentation - Revenue growth for different product segments in 2024 included a 15% increase in sewing machines, a 14% increase in cutting tables, and a 25% increase in automated sewing units [2]. - Domestic revenue reached 3.128 billion RMB, a 28.6% increase, slightly above the industry growth rate of 27% [2]. Cost Management - The company streamlined its product line to 1,400 SKUs, enhancing resource allocation efficiency [3]. - The increase in sales, management, and R&D expense ratios was primarily due to stock option expenses, while financial expenses decreased due to loan repayments [3]. Future Outlook - The company is set to release a high-end AI sewing machine in the second half of 2024, which is expected to create a new category in the sewing machine industry and improve production efficiency [4]. - The company maintains a profit forecast of 1.16 billion RMB for 2025 and 1.28 billion RMB for 2026, with corresponding PE ratios of 12 and 11 [5][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.40 RMB [7][8]. Core Insights - The company achieved a revenue of 6.09 billion RMB in 2024, a year-on-year increase of 15%, and a net profit attributable to shareholders of 810 million RMB, up 51% year-on-year, aligning with previous performance forecasts [1][2]. - The company is expected to benefit from the release of high-end AI products and an increase in market share, particularly with the upcoming launch of a high-end AI sewing machine [1][4]. - The company’s gross margin improved to 32.76% and net margin to 13.57% in 2024, reflecting a year-on-year increase of 4.34 and 3.37 percentage points respectively [3]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 1.387 billion RMB, a 16% increase year-on-year, and a net profit of 193 million RMB, up 53% year-on-year [1]. - The company’s domestic revenue reached 3.128 billion RMB, growing 28.6% year-on-year, while overseas revenue was 2.944 billion RMB, a 3.3% increase year-on-year [2]. Product Development - The company has made significant progress in developing high-end products, including a prototype for a high-end AI sewing machine and a humanoid robot [4]. - The company plans to launch the high-end AI sewing machine in the second half of the year, which is expected to create a new category in the sewing machine industry [4]. Profitability and Cost Management - The company’s sales, management, and R&D expense ratios increased due to stock option expenses, while the financial expense ratio decreased due to reduced interest payments from loan repayments [3]. - The company’s product line has been streamlined to 1,400 SKUs, enhancing resource allocation efficiency [3]. Earnings Forecast - The forecast for net profit attributable to shareholders is 1.16 billion RMB for 2025, 1.28 billion RMB for 2026, and 1.38 billion RMB for 2027, with corresponding PE ratios of 12, 11, and 10 times [5][6].

Core Viewpoint - The company reported strong financial performance for 2024, with significant growth in both revenue and net profit, indicating a recovery in the industrial sewing machine industry and the company's effective strategies in product development and market expansion [1][2][5]. Financial Performance - In 2024, the company achieved operating revenue of 6.094 billion yuan, a year-on-year increase of 15.11%, and a net profit attributable to shareholders of 812 million yuan, up 50.86% [1][2]. - The fourth quarter of 2024 saw operating revenue of 1.387 billion yuan, growing 16.21% year-on-year, and a net profit of 193 million yuan, reflecting a 53.03% increase [1][2]. Growth Analysis - The revenue growth is attributed to the recovery of the industrial sewing machine industry, with the company benefiting as a market leader [2]. - The company successfully signed contracts with 10 world-class benchmark clients and focused on high-end market expansion through innovative products [2][5]. Profitability Analysis - The gross margin for 2024 was 32.76%, an increase of 4.34 percentage points, while the net margin rose to 13.57%, up 3.37 percentage points [2]. - The company managed to balance rising expenses with improved profitability, despite facing challenges in cost control [2]. Operational Efficiency - The company demonstrated improved operational efficiency, with inventory turnover days decreasing by 25.08 days to 79.39 days, and accounts receivable turnover days down by 9.51 days to 50.47 days [3]. - The net cash flow from operating activities was 1.129 billion yuan, a decline of 23.05% year-on-year [3]. R&D Investment - R&D expenses reached 488 million yuan, a 23.67% increase, with an R&D expense ratio of 8.01% [3]. - The company holds 2,705 valid patents, including 1,125 invention patents, indicating a strong focus on innovation [3]. Industry Overview - The sewing industry experienced moderate growth in 2024, driven by recovering global demand and increased exports, with a total export value of 3.424 billion USD, up 18.39% [4]. - Domestic sales of industrial sewing equipment rose by 27%, with an estimated total of 2.35 million units sold [4]. Product Performance - The company sold 2.1211 million industrial sewing machines in 2024, achieving revenue of 5.264 billion yuan, with a gross margin of 31.28% [5]. - Revenue from cutting and spreading machines was 626 million yuan, up 14.36%, while automatic sewing equipment for shirts and jeans generated 182 million yuan, a 25.12% increase [6]. Strategic Development - The company is focusing on high-end products integrating AI and robotics, with plans to launch humanoid robots by the second half of 2026 [6].

| 关于本报告 | 01 | | --- | --- | | 董事长致辞 | 03 | | 走进杰克股份 | 05 | | 公司概况 | 05 | | 发展历程 | 07 | | 大事记 | 09 | | 企业文化 | 13 | | 荣誉奖项 | 14 | | ESG治理 | 15 | | ESG理念与管理架构 | 16 | | ESG相关荣誉 | 17 | | 实质性议题分析 | 19 | | 利益相关方识别与沟通 | 20 | | SDGs贡献 | 21 | | 专题: | | | 推进爆品战略 | | | 激活服装智造新质生产力 | 23 | | 附录 | | | 关键绩效 | 137 | | 指标索引 | 142 | | 匠心铸就品质 技术创新赋能社会 | | | --- | --- | | 研发创新驱动 | 29 | | 保障产品质量 | 36 | | 数字化战略 | 41 | | 智联服务全球 助力服装智造升级 | | | --- | --- | | 卓越客户服务 | 49 | | 供应链管理 | 56 | | 助力行业发展 | 62 | | 规范公司治理 筑牢企业发展根基 | | | --- | ...

| This Report | 0 | | --- | --- | | Message from the Chairman | 0 | | Jack | 0 | | Company Profile | 0 | | Development History | 0 | | Events | 0 | | Corporate Culture | 1. | | Honors | 1 | | ESG | 1 | | ESG Concept and Management Structure | 1 | | ESG-related Honors | 1 | | Substantive Topic Analysis | 1. | | Stakeholder Identification and Communication 20 | | | Contribution to SDGs | 2 | | Special Topics: | | | Key Performance | 1 | | --- | --- | | Index of Indicators | 1 | | Serve the world throug | | -- ...

Group 1 - Jack Shares (603337.SH) released its 2024 annual report on April 15, 2025, indicating that as of April 14, 2025, 293 institutional investors disclosed holding a total of 352 million shares, accounting for 72.88% of the total share capital [1] - The top ten institutional investors include Taizhou Jack Trading Co., Ltd., LAKE VILLAGE LIMITED, Hong Kong Central Clearing Limited, and others, with a combined holding ratio of 64.65%, which is a decrease of 1.74 percentage points compared to the previous quarter [1] Group 2 - In the public fund sector, one fund, China International Capital Corporation CSI 1000 Index Enhanced A, increased its holdings, while 16 funds, including Tianhong Yongli Bond A and Ping An Rui Xiang Cultural Entertainment Mixed A, reduced their holdings, with a decrease ratio of 1.82% [2] - A total of 268 new public funds disclosed their holdings this period, including GF Stable Growth Mixed A and others, while 7 funds were not disclosed this period, including Guotai Junan Jinma Stable Return Mixed A [2] - In the social security fund sector, one new fund disclosed its holdings in Jack Shares, namely the National Social Security Fund 115 Portfolio, while one fund, Dachen Fund Management Co., Ltd. - Social Security Fund 17011 Portfolio, was not disclosed this period [2]

Group 1 - The US government has temporarily exempted certain electronic products from tariffs, but this exemption is not permanent and will last only until a new tariff plan for the semiconductor industry is established [2][21] - China's foreign trade in the first quarter of this year reached 10.3 trillion yuan, a year-on-year increase of 1.3%, with exports growing by 6.9% and imports declining by 6% [3] - The State Administration for Market Regulation in China has introduced 37 key measures to support the development of private enterprises, focusing on breaking down barriers and promoting fair competition [4][5] Group 2 - Hong Kong is preparing to attract Chinese concept stocks back to its market, emphasizing its stability and attractiveness amid global financial market volatility [6][7] - The China Securities Regulatory Commission has emphasized the importance of functionality in the fund industry, aiming for a balance between quality and scale [8] - Insurance funds are accelerating their entry into the stock market, with the scale of long-term stock investment trials increasing from 50 billion yuan to 162 billion yuan [9] Group 3 - The US is experiencing a significant drop in import orders, with a 64% decrease in overall import volume, indicating potential disruptions in trade due to tariff policies [10][11] - The total share of stock ETFs in A-shares has surpassed 2 trillion shares, marking a historical high, with substantial inflows of capital observed in April [12] - Global pension funds are pausing investments in US assets due to uncertainties stemming from aggressive tariff policies, indicating a shift in investment strategies [13] Group 4 - The AI industry is facing scrutiny over its energy consumption, with Elon Musk's AI company xAI being investigated for violating environmental regulations related to its power generation [14] - The UK government plans to take over the British Steel Company from a Chinese firm, raising concerns about foreign investments in critical industries [15] - The consumer electronics sector is seeing increased research interest, driven by strong domestic demand policies and a surge in M&A activities in the technology field [17]

Core Insights - Jack Technology Co., Ltd. reported a revenue of 6.094 billion yuan for 2024, marking a year-on-year increase of 15.11%, with a net profit of 812 million yuan, up 50.86% [1] - The company focuses on intelligent manufacturing in the apparel sector, with significant revenue contributions from its main products, including smart industrial sewing machines and automatic sewing equipment [1][2] Revenue Breakdown - Smart industrial sewing machines generated 5.264 billion yuan, a growth of 14.69% year-on-year [1] - Smart cutting and laying machines achieved 626 million yuan in revenue, up 14.36% [1] - Shirt and denim automatic sewing equipment reached 182 million yuan, reflecting a 25.12% increase [1] Strategic Initiatives - The company has implemented a successful "explosive product" strategy, focusing on flagship products "Fast Response King" and "Overlock King," which have sold 801,300 units as of November 5, 2024, with a GMV increase of 68% during the "Double 11" shopping period [2] - Jack Technology emphasizes a dual strategy of domestic and international sales, achieving 3.128 billion yuan in domestic revenue (up 28.57%) and 2.944 billion yuan in overseas revenue (up 3.30%) [2] Future Plans - In 2025, the company aims to deepen its presence in key markets such as Bangladesh, Vietnam, Cambodia, and Indonesia, focusing on high-end channels and major global clients [3] - The company plans to enhance local operations and improve sales efficiency and service quality in overseas markets [3] Shareholder Returns - Jack Technology announced a cash dividend of 5 yuan per 10 shares, totaling 230 million yuan, with a commitment to a mid-term dividend of 139 million yuan, leading to an expected total dividend of 369 million yuan for the year, representing 45.44% of net profit [3] - The dividend plan reflects the company's strong financial health and commitment to shareholder value, enhancing investor confidence [3]

Core Insights - Jack Co., Ltd. achieved a record high in performance for 2024, with total revenue of 6.094 billion yuan, a year-on-year increase of 15.11%, and a net profit attributable to shareholders of 812 million yuan, up 50.86% [1] - The company successfully navigated global economic pressures through a focus on product strategy, global expansion, and innovation [1] Strategic Execution - The company executed four key strategic initiatives, leading to significant growth in core business areas [4] - The "Focus on Best-Selling Products" strategy enhanced market share for flagship products like "Fast Response King" and "Over-Thread King" [4] - Jack Co. signed contracts with 10 world-class benchmark clients, expanding its large customer base from domestic to international markets [4] - The product line was streamlined to 1,400 SKUs, improving resource allocation efficiency [4] - Quality enhancement initiatives in core product lines led to increased customer satisfaction and NPS scores [4] Global Expansion - Overseas business became a core growth driver, with the company implementing a "Marketing Iron Triangle" model in key international markets [5] - Despite not meeting overseas revenue targets, the company achieved a 37.27% gross margin on overseas products, an increase of 3.88 percentage points year-on-year [5] - The smart sewing industry for shirts and jeans generated sales of 182 million yuan, reflecting a year-on-year growth of 25.12% [5] Innovation and R&D - Jack Co. invested 488 million yuan in R&D, representing over 8% of sales revenue [6] - The company won a first-class award for technological progress from the China National Light Industry Council for its collaborative project with Zhejiang University [6] - A total of 445 patents were filed, including 155 invention patents, and the company contributed to the revision of 23 national and industry standards [6] - Milestone advancements were made in high-end AI sewing machine development, with prototypes like "Jack No. 1" humanoid robot and unmanned template machine being developed [6]