JACK(SH:603337) SINOLINK SECURITIES·2024-10-30 01:31Investment Rating - The report maintains a "Buy" rating for the company, considering its leading position in the industry and the expected recovery in industry conditions [4]. Core Views - The company reported a revenue of 4.706 billion RMB for the first three quarters of 2024, representing a year-on-year growth of 14.79%, and a net profit attributable to shareholders of 619 million RMB, up 50.2% year-on-year [2]. - The slowdown in revenue growth in the third quarter was primarily due to weakened domestic demand, but a recovery is anticipated in the fourth quarter, supported by potential economic stimulus policies [3]. - The company has been optimizing its product structure with high-value-added products, leading to an increase in profitability, with a gross margin of 33.11% in Q3 2024, up 4.3 percentage points year-on-year [3]. - The company is optimistic about its overseas growth prospects, with export revenue of 1.454 billion RMB in the first half of 2024, a year-on-year increase of 0.89% [3]. Summary by Sections Performance Review - For Q4 2023, the company achieved a revenue of 1.471 billion RMB, a year-on-year increase of 4.4%, and a net profit of 203 million RMB, up 42.97% year-on-year [2]. Operational Analysis - The company is expected to see accelerated growth in exports in the second half of the year, as the industrial sewing machine export market has shifted from negative to positive growth [3]. - The introduction of new products, such as the "Guo Geng Wang," is anticipated to further enhance profitability as sales volume increases [3]. Profit Forecast and Valuation - The projected net profits for the company from 2024 to 2026 are 789 million RMB, 997 million RMB, and 1.219 billion RMB, respectively, with corresponding P/E ratios of 19X, 15X, and 12X [4].