JACK(SH:603337) Huaxin Securities·2024-10-20 09:10Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first recommendation [1]. Core Views - The company is expected to see significant growth in performance due to increasing overseas market demand, with a projected net profit of 600-630 million yuan for Q1-Q3 2024, representing a year-on-year increase of 45.49%-52.77% [1]. - The company has actively expanded its overseas market presence, achieving over 40% of its revenue from exports in recent years, with a reported export revenue of 1.454 billion yuan in H1 2024, a year-on-year increase of 0.89% [1][2]. - The company's product strategy, focusing on creating competitive "explosive products," has driven substantial revenue growth, with notable successes such as the "Fast Response King" sewing machine, which sold over 500,000 units globally within a year [2][3]. Summary by Sections Performance Outlook - The company forecasts revenues of 6.601 billion yuan, 8.197 billion yuan, and 9.492 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.61 yuan, 2.08 yuan, and 2.50 yuan [3][5]. - The expected growth rates for revenue are 24.7% in 2024, 24.2% in 2025, and 15.8% in 2026, while net profit is projected to grow by 44.0%, 29.3%, and 20.5% over the same period [5][6]. Market Dynamics - The global inflation is easing, creating favorable conditions for interest rate cuts, which is expected to boost market confidence and stimulate international trade, benefiting the company's export performance [1]. - The company has established over 8,000 distribution points in more than 160 countries, enhancing its global market competitiveness [1][2]. Product Strategy - The company has implemented a product strategy focusing on core categories to develop market-leading products, which has significantly improved its market share and brand influence [2][3]. - The successful launch of products like "Fast Response King" and "Overpass King" has demonstrated the effectiveness of this strategy, with the latter achieving sales of 480 million yuan within just five hours of its release [2].