JACK(SH:603337) ZHONGTAI SECURITIES·2024-10-29 02:11Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months with expected returns exceeding 15% compared to the benchmark index [2][6]. Core Insights - The company has demonstrated strong performance in Q3 2024, with revenue reaching 4.71 billion yuan, a year-on-year increase of 4.40%, and net profit attributable to shareholders of 203 million yuan, up 42.97% year-on-year, exceeding market expectations [3]. - The company has executed a second share buyback within the year, reflecting confidence in its long-term development and investment value [3]. - The report highlights the company's strategic focus on product structure upgrades and digital manufacturing capabilities, which have contributed to improved profitability and market share [3]. Financial Performance Summary - Revenue Growth: The company achieved a total revenue of 5.29 billion yuan in 2023, with projections of 6.15 billion yuan for 2024, representing a growth rate of 16% year-on-year [2]. - Net Profit: The net profit attributable to shareholders is forecasted to grow significantly from 538 million yuan in 2023 to 801 million yuan in 2024, marking a 49% increase [2]. - Earnings Per Share (EPS): EPS is expected to rise from 1.11 yuan in 2023 to 1.66 yuan in 2024 [2]. - Profitability Ratios: The company's return on equity (ROE) is projected to increase from 12% in 2023 to 16% in 2024 [2]. Operational Efficiency - The company has improved its operational efficiency, with inventory turnover days decreasing to 63.89 days, down 33.52 days year-on-year, and accounts receivable turnover days reduced to 56.42 days, a decrease of 13.14 days [3]. - The gross profit margin for the first three quarters of 2024 was reported at 32.22%, an increase of 3.67 percentage points year-on-year, driven by product upgrades and reduced manufacturing costs [3]. Research and Development - R&D expenses for the first three quarters of 2024 amounted to 317 million yuan, reflecting a year-on-year increase of 15.81%, with a R&D expense ratio of 6.73% [3]. - The company holds a total of 2,691 valid patents, including 1,098 invention patents, indicating a strong commitment to innovation [3].