Jasan Group(603558) 国泰君安·2024-08-08 23:31Investment Rating - The report maintains a "Buy" rating for Jian Sheng Group, with a target price of 13.20 CNY, which is slightly above the industry average PE of 15 times for 2024 [4][3]. Core Views - The Q2 performance showed short-term fluctuations, but the outlook for orders in the second half of the year is optimistic due to low inventory levels among downstream major clients and upward revisions in revenue guidance from key customers like Uniqlo [2][3]. - The report adjusts the EPS forecast for 2024-2026 to 0.86, 1.01, and 1.17 CNY respectively, down from previous estimates of 0.90, 1.04, and 1.19 CNY, reflecting the company's strong growth potential [3][4]. Financial Performance Summary - For H1 2024, the company reported revenue of 1.169 billion CNY, net profit attributable to the parent of 166 million CNY, and a non-recurring net profit of 162 million CNY, representing year-on-year increases of 5.5%, 33.8%, and 32.1% respectively [3]. - Q2 revenue was 620 million CNY, with a net profit of 83 million CNY, showing a year-on-year increase of 1.5% but a decline in net profit by 1.9% [3]. - The cotton sock segment outperformed the seamless segment, with H1 revenue of 845 million CNY, up 15%, and a net profit of 140 million CNY, up 43% [3]. Business Segment Analysis - Cotton Socks: Q2 revenue growth slowed due to shipment delays, but profitability remained high, with Q1 and Q2 net profit margins at 17% and 15% respectively, showing improvement from 12% in H1 2023 [3]. - Seamless Products: Q2 revenue decline narrowed significantly, with H1 revenue at 324 million CNY, down 14%, and net profit of 30 million CNY, up 3% [3]. Market Outlook - The outlook for H2 is positive, with expectations of stable growth in the cotton sock business due to low inventory levels and increased demand from major clients [3]. - New clients in the seamless segment are expected to contribute to revenue growth, with improved profitability anticipated as production capacity utilization increases [3].