Jasan Group(SH:603558) Changjiang Securities·2024-11-07 06:19Investment Rating - The report maintains a "Buy" rating for the company [5][4]. Core Insights - The company achieved Q3 revenue of 755 million yuan, with a year-on-year increase of 37%, exceeding previous expectations of 15%-20% [2][3]. - For the first three quarters, total revenue reached 1.924 billion yuan, reflecting a year-on-year growth of 16.0% [2][3]. - The strong performance in Q3 is attributed to robust orders from high-quality clients, particularly in the cotton socks and seamless categories [3][4]. - The company anticipates significant profit elasticity due to operational efficiency improvements and increased orders from major clients [4]. Summary by Sections Revenue Performance - Q3 revenue for cotton socks is expected to increase by 28.8% to 565 million yuan, marking a historical high for a single quarter [3]. - Seamless revenue is projected to grow by 69% to 190 million yuan, benefiting from a low base in Q3 2023 and increased orders [3]. Profitability Analysis - The overall gross margin remained stable at 28.5%, with a slight year-on-year decrease of 0.1 percentage points [4]. - The net profit margin for Q3 decreased by 1.0 percentage points to 12.9%, primarily due to foreign exchange losses and increased tax expenses [4]. Future Outlook - The company is expected to benefit from capacity transfer and strong R&D, with projected net profits for 2024-2026 of 330 million, 390 million, and 460 million yuan, respectively [4]. - Corresponding price-to-earnings ratios are estimated at 11.9, 10.0, and 8.6, indicating a favorable investment margin [4].