JACK(SH:603337) Southwest Securities·2024-10-31 06:37Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company reported strong Q3 performance driven by robust external demand, with revenue for the first three quarters reaching 4.71 billion yuan, a year-on-year increase of 14.8%, and net profit attributable to shareholders of 620 million yuan, up 50.2% [1]. - The company announced a share buyback plan of 50 to 100 million yuan, reflecting management's confidence in the company's long-term development [1]. - The company’s gross margin for the first three quarters was 32.2%, an increase of 3.7 percentage points year-on-year, attributed to product structure optimization and cost reductions [1]. Summary by Sections Financial Performance - In Q3 alone, the company achieved revenue of 1.47 billion yuan, a 4.4% year-on-year increase, and a net profit of 200 million yuan, up 43.0% [1]. - The gross margin for Q3 was 33.1%, a year-on-year increase of 4.3 percentage points, while the net margin was 14.2%, up 4.1 percentage points [1]. Market Conditions - The global macroeconomic recovery has positively impacted the sewing machinery industry, with a notable increase in demand from downstream sectors such as apparel and footwear [1]. - According to the China Sewing Machinery Association, the cumulative export value of sewing machinery products from January to July 2024 was 1.9 billion USD, a year-on-year increase of 11.5% [1]. Profit Forecast and Investment Suggestions - The company is expected to achieve net profits of 810 million yuan, 1.02 billion yuan, and 1.25 billion yuan for 2024, 2025, and 2026, respectively, with a compound annual growth rate of 32.5% [1][5]. - The report projects earnings per share (EPS) of 1.67 yuan, 2.12 yuan, and 2.60 yuan for the same years [1][5].