JACK(SH:603337) HTSC·2024-07-11 10:07Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 37.90, up from the previous target of RMB 35.80 [2][5]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of RMB 3.8 to 4.3 billion for the first half of 2024, representing a year-on-year increase of 40% to 60% [2]. - The report highlights a significant improvement in the company's performance, with a slight upward revision of profit forecasts for 2024 to 2026, projecting net profits of RMB 7.6 billion, RMB 11.5 billion, and RMB 12.8 billion respectively [2][20]. - The company is capitalizing on the recovery in the apparel export market, with domestic sewing machine demand increasing due to improved export figures from Vietnam [1][3]. Summary by Sections Financial Performance - The company anticipates a net profit of RMB 1.92 to 2.45 billion for Q2 2024, reflecting a year-on-year growth of 22% to 55% [2]. - The report indicates that the company's net profit for 2024 is expected to grow by 42% compared to 2023, with a projected net profit of RMB 764.57 million [23]. Market Trends - The apparel export market in China has shown signs of recovery, with export values for March, April, and May showing improvements of -23%, -9%, and -0% year-on-year respectively [1]. - Vietnam's textile exports have also increased, with a year-on-year growth of 3% in Q2 2024, further driving demand for sewing machines [1][22]. Product Development - The company has focused on product upgrades and the launch of new products, such as the "Overlock King" sewing machine, which has received significant market interest, achieving RMB 4.8 billion in orders during its launch [22]. - The report emphasizes that product structure upgrades are expected to enhance the company's market share and profitability [22].