JACK(SH:603337) HUAXI Securities·2024-08-13 02:03Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company has shown significant revenue growth in H1 2024, achieving 3.235 billion yuan, a year-on-year increase of 20%, with Q2 revenue reaching 1.606 billion yuan, up 30% year-on-year [4] - The company's net profit for H1 2024 was 417 million yuan, reflecting a 54% year-on-year increase, with a notable improvement in profit margins [5] - The report highlights the company's strong market position and growth potential in the industrial sewing machine sector, driven by a recovery in domestic and overseas demand [6][7] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 3.235 billion yuan, with significant contributions from various product lines, including industrial sewing machines and automatic sewing equipment [4] - The net profit and net profit excluding non-recurring items were 417 million yuan and 382 million yuan, respectively, both showing substantial year-on-year growth [5] - The sales gross margin improved to 31.81%, up 3.40 percentage points year-on-year, attributed to product mix changes and cost reductions [5] Market Dynamics - The report indicates a recovery in demand for sewing machinery, with domestic sales growing by 42% year-on-year in H1 2024, while overseas sales saw a modest increase of 1% [4] - The company is expected to benefit from the traditional peak season in Q3, with a positive outlook for both domestic and international markets [6] - The introduction of new products, such as the "Fast Response King," has been well-received in the market, further enhancing the company's competitive edge [7] Future Projections - Revenue forecasts for 2024-2026 are set at 6.843 billion yuan, 9.064 billion yuan, and 10.890 billion yuan, representing year-on-year growth rates of 29%, 33%, and 20%, respectively [8] - Net profit projections for the same period are 776 million yuan, 1.057 billion yuan, and 1.294 billion yuan, with expected growth rates of 44%, 36%, and 22% [8] - The report anticipates a continued increase in earnings per share (EPS), with estimates of 1.60 yuan, 2.18 yuan, and 2.67 yuan for the years 2024, 2025, and 2026, respectively [8]