Jasan Group(603558) 国盛证券·2025-01-14 03:08Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a projected PE of 11 times for 2025 [4][6]. Core Insights - The company is expected to achieve healthy revenue growth in 2025, with a projected increase of over 10% in revenue and profit growth potentially exceeding revenue growth [1]. - The company has shown strong performance in 2024, with a revenue increase of 16% year-on-year to 1.92 billion yuan and a net profit increase of 31% year-on-year to 260 million yuan [1]. - The company is expanding its overseas production capacity, particularly in Vietnam, which is anticipated to contribute to production growth in both cotton socks and seamless apparel [3]. Summary by Sections Business Performance - The company reported a 20% year-on-year growth in cotton sock revenue and a 5% growth in seamless apparel revenue for the first three quarters of 2024 [1][2]. - The core customer base includes major brands such as UNIQLO, PUMA, and Decathlon, contributing to stable order growth [2]. Production Capacity and Expansion - The company is enhancing its integrated supply chain and has made significant investments in expanding production capacity in Vietnam, with plans for a new facility in South Dinh Province [3]. - The production output for cotton socks reached 320 million pairs in 2023, with expectations for continued growth in 2025 [3]. Financial Management - As of Q3 2024, inventory increased by 18.5% year-on-year to 640 million yuan, while the cash flow from operating activities was 220 million yuan, approximately 0.9 times the net profit for the same period [4]. - The company’s financial projections indicate a net profit of 325 million yuan for 2024, with expected growth to 374 million yuan in 2025 [5].