JACK(SH:603337) Xin Lang Cai Jing·2025-08-28 00:31Core Viewpoint - The company reported a mixed performance in 1H25, with revenue growth but a decline in 2Q25, while maintaining a positive outlook for future growth driven by international sales and AI product launches [1][2][3]. Financial Performance - In 1H25, the company achieved revenue of 3.373 billion yuan, a year-on-year increase of 4.27%, and a net profit attributable to shareholders of 477 million yuan, up 14.57% year-on-year [1]. - In 2Q25, revenue was 1.58 billion yuan, a year-on-year decrease of 1.61% and a quarter-on-quarter decline of 11.88%. The net profit for the quarter was 232 million yuan, reflecting a year-on-year increase of 1.28% but a quarter-on-quarter decrease of 5.69% [1]. Operational Analysis - The domestic market's low demand negatively impacted 2Q25 performance, with the company's domestic sales down 10.86% year-on-year to 1.581 billion yuan, although this was significantly better than the industry average, which saw a decline of approximately 30-35% [2]. - The company is not directly affected by U.S. tariffs, which primarily introduce short-term uncertainties rather than a loss of demand, suggesting a potential recovery in domestic sales in 3Q25 [2]. International Sales and Product Development - The company experienced a strong growth in international sales, achieving 1.785 billion yuan in revenue, a year-on-year increase of 22.82%. The higher gross margin from international sales positively impacted overall performance [3]. - The company plans to launch its high-end AI sewing machine in the second half of 2025, which has already been tested by several major clients. This product is expected to enhance the company's market share and strengthen its international expansion strategy [3]. - The company is actively integrating AI and humanoid robotics into its sewing machinery, with products like the "Jack No. 1" humanoid robot and unmanned template machines showing promising development. This integration aims to automate the entire garment manufacturing process, addressing industry pain points and enhancing product value [3]. Profit Forecast and Valuation - The company is projected to achieve net profits of 964 million yuan, 1.139 billion yuan, and 1.343 billion yuan for the years 2025 to 2027, corresponding to PE ratios of 24X, 21X, and 18X respectively. The positive outlook is based on the company's international expansion and robotics initiatives [4].