Jasan Group(SH:603558) Tianfeng Securities·2024-08-09 10:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [6]. Core Insights - The company reported a revenue of 1.17 billion with a year-on-year growth of 5.5% and a net profit attributable to shareholders of 170 million, reflecting a significant increase of 33.8% [1]. - The gross margin for the first half of 2024 was 28.9%, up by 4.2 percentage points, attributed to cost optimization and improved production efficiency [2]. - The company is focusing on enhancing core customer service and developing new customers, particularly in the seamless apparel segment [3]. - The company is leveraging its domestic and international production capacity, with ongoing projects in Vietnam to enhance competitiveness in the cotton socks and seamless apparel sectors [4]. - The company expects continued improvement in the seamless apparel business, which is anticipated to release additional profits [5]. Financial Performance - For the first half of 2024, the company achieved a revenue of 1.17 billion, with a net profit of 170 million, marking a 33.8% increase year-on-year [1]. - The gross margin for the first half of 2024 was 28.9%, an increase of 4.2 percentage points compared to the previous year [2]. - The net profit margin for the first half of 2024 was 14.2%, up by 3 percentage points year-on-year [2]. - The company plans to distribute a mid-term cash dividend of 0.2 yuan per share, totaling 70 million, which accounts for 43% of the net profit for the first half of 2024 [1]. Future Projections - The company forecasts net profits for 2024, 2025, and 2026 to be 320.7 million, 369.9 million, and 423.5 million respectively, with corresponding EPS of 0.87, 1.00, and 1.15 yuan per share [5][9]. - The expected P/E ratios for the next three years are projected to be 10, 8.77, and 7.66 respectively [5][9].