Ge Long Hui A P P·2025-08-15 05:54Core Viewpoint - Dongwu Securities report indicates that Jian Sheng Group's Q2 net profit decline has narrowed sequentially, and the cotton sock business is expected to improve in the second half of the year [1] Group 1: Financial Performance - The company has maintained its existing customer base while actively seeking new clients [1] - The decline in profit is primarily due to increased costs and related expenses from early capacity and personnel reserves in anticipation of expected growth [1] - The interim dividend is set at 0.25 CNY per share, with a payout ratio of 61% [1] Group 2: Future Outlook - For the second half of the year, core customer Uniqlo's orders are expected to be released in a concentrated manner [1] - The company has successfully developed new clients such as Brooks, NB, Aritzia, and UA, and is in the development phase with brands like Lululemon, UGG, and HOKA [1] - Orders in the second half are anticipated to improve sequentially [1] Group 3: Management Confidence - The company continues to offer high dividends and buy back shares, with management increasing their holdings, reflecting confidence in future development [1] - The new client development in the cotton sock business and the clear trend of order recovery in the second half are noted [1] - The forecasted net profit attributable to shareholders for 2025-2027 is expected to be 312 million, 354 million, and 403 million CNY, respectively, with corresponding PE ratios of 11, 10, and 9 times [1]