JACK(SH:603337) HTSC·2025-08-31 10:31Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 72.52 [5][7]. Core Insights - The company is positioned well in the trend of automation in garment manufacturing, with a clear development path in AI sewing machines and humanoid robots, which are expected to drive significant revenue growth in the future [1][2]. - The global garment manufacturing industry has a labor cost exceeding RMB 1 trillion annually, indicating substantial potential for machine replacement due to advancements in AI technology [2][3]. - The company combines humanoid robots with traditional automation to enhance precision in complex garment manufacturing processes, thereby facilitating the transition to unmanned production [3][4]. - The company possesses significant advantages in data and distribution channels, which are expected to help capture a larger market share in the future [4]. Financial Projections and Valuation - The company is projected to achieve net profits of RMB 9.3 billion, RMB 12.6 billion, and RMB 15.6 billion for the years 2025 to 2027, representing year-on-year growth rates of 15%, 34%, and 24% respectively [5][11]. - The estimated price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 25, 19, and 15 times, respectively, compared to the industry average PE of approximately 37 times for 2025 [5][12].