Jasan Group(SH:603558) Guoxin Securities·2024-10-24 13:03Investment Rating - The investment rating for the company is "Outperform the Market" [3][15]. Core Views - The company reported a 37% year-on-year revenue growth in Q3 2024, reaching 750 million yuan, with a net profit growth of 27% to 100 million yuan. The seamless apparel segment has shown a turnaround with positive growth [1][3]. - The gross margin slightly decreased by 0.1 percentage points to 28.5%, primarily due to lower profitability from the seamless apparel production base in Vietnam, while the cotton socks business maintained a good gross margin [1]. - The company is experiencing healthy operational metrics, with inventory turnover days decreasing by 16 days to 115 days, and capital expenditures increasing to 100 million yuan for capacity enhancement [1][3]. Summary by Relevant Sections Financial Performance - Revenue for 2024 is projected to be 2.542 billion yuan, with a year-on-year growth of 11.4%. Net profit is expected to reach 334 million yuan, reflecting a growth of 23.4% [2][14]. - The company maintains a stable EBIT margin of 15.2% for 2024, with a projected return on equity (ROE) of 13.1% [2][14]. Business Segments - The cotton socks business continues to grow rapidly, supported by strong customer relationships and increasing market share. Key clients like Uniqlo and HBI are experiencing significant growth [1][3]. - The seamless apparel segment, which had been declining, has shown signs of recovery with high growth expected in Q3 2024, although profitability remains a concern due to operational efficiency issues at the Vietnam base [1][3]. Valuation - The target price for the company is set between 11.80 and 12.70 yuan, corresponding to a price-to-earnings (PE) ratio of 13-14x for 2024 [3][15].