Jasan Group(SH:603558) GOLDEN SUN SECURITIES·2025-11-02 09:45Investment Rating - The report maintains a "Buy" rating for the company, with an adjusted profit forecast for 2025-2027 [5][7]. Core Insights - The company experienced a slight decline in cotton sock revenue in Q3 2025, but the quality of seamless operations improved significantly. Revenue for Q1-Q3 2025 was CNY 1.89 billion, down 2% year-on-year, while net profit attributable to shareholders increased by 17% to CNY 310 million [1][3]. - In Q3 2025, the company reported a revenue of CNY 720 million, a decrease of 5% year-on-year, but net profit attributable to shareholders surged by 71% to CNY 170 million, driven by cost reduction and efficiency improvements [2][3]. - The company is focusing on expanding its integrated production capacity overseas, which is expected to enhance its competitive strength in the medium to long term [4]. Financial Performance Summary - For Q1-Q3 2025, the gross profit margin improved by 0.8 percentage points to 29.5%, while the net profit margin decreased by 0.7 percentage points to 12.7% [1]. - In Q3 2025, the gross profit margin increased by 3.3 percentage points to 31.8%, and the net profit margin rose by 1.7 percentage points to 14.3% [2]. - The company is actively managing its cash flow and inventory, with inventory at CNY 640 million, down 0.7% year-on-year, and a net operating cash flow of CNY 390 million, approximately 1.3 times the net profit for the same period [4]. Business Outlook - The company collaborates with key brand clients such as UNIQLO, PUMA, and Decathlon, indicating a stable order flow and ongoing efforts to develop new clients [3]. - The company is advancing its smart manufacturing capabilities and is set to complete a production line for 9 million pairs of mid-to-high-end cotton socks by the end of 2024 [4].