JACK(SH:603337) ZHONGTAI SECURITIES·2024-08-13 03:38Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the benchmark index within the next 6 to 12 months [11]. Core Insights - The company has demonstrated accelerated revenue growth and improved profitability, with a 20.23% year-on-year increase in revenue for the first half of 2024 and a 53.99% increase in net profit [3][4]. - The company is positioned as a leader in the global sewing equipment industry and is expected to benefit significantly from the cyclical recovery in the industry [6][7]. - The company has successfully captured market opportunities, enhancing its product structure and expanding its market share, particularly in high-end markets [4][5]. Financial Performance Summary - Revenue and Profitability: - In 2024 Q2, the company achieved revenue of 1.606 billion yuan, a year-on-year increase of 29.15%, and net profit of 229 million yuan, up 44.38% year-on-year [3][4]. - For the first half of 2024, total revenue reached 3.235 billion yuan, with a gross margin of 31.81%, reflecting a 3.40 percentage point increase year-on-year [4]. - Growth Forecast: - Projected revenues for 2024, 2025, and 2026 are 6.608 billion yuan, 7.929 billion yuan, and 9.128 billion yuan, respectively, with year-on-year growth rates of 25%, 20%, and 15% [3][4]. - Net profit forecasts for the same years are 731 million yuan, 916 million yuan, and 1.12 billion yuan, with growth rates of 36%, 25%, and 22% [3][4]. - Market Segmentation: - Domestic revenue for the first half of 2024 was 1.773 billion yuan, a 42.28% increase year-on-year, while international revenue was 1.454 billion yuan, a 0.89% increase year-on-year [5]. - The company has made significant strides in both domestic and international markets, with a focus on high-end automation solutions [5][6]. - Research and Development: - R&D expenses for the first half of 2024 were 209 million yuan, a 21.65% increase year-on-year, indicating a strong commitment to innovation and product development [4][5]. Operational Efficiency - The company has improved its operational efficiency, with inventory turnover days decreasing to 60.90 days, down 41.19 days year-on-year, and accounts receivable turnover days decreasing to 56.23 days, down 11.27 days year-on-year [4]. - The net cash flow from operating activities for the first half of 2024 was 635 million yuan, reflecting a 4.87% year-on-year increase [4]. Conclusion - The report highlights the company's strong performance and growth potential, supported by its leadership position in the sewing equipment industry and strategic initiatives to enhance product offerings and market reach [6][7].