Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 43.60 [8][9]. Core Views - The report indicates that the impact of tariffs on the sewing machine industry is manageable in the short term, while in the medium to long term, it may drive a shift in global apparel manufacturing, boosting demand for new sewing machines [1][2]. - The company is focusing on promoting AI technology in apparel manufacturing, introducing new products such as AI sewing machines and humanoid robots to help downstream clients reduce costs and improve efficiency [1][4]. - Continuous product innovation is expected to enhance the company's profitability [1]. Summary by Sections Tariff Impact - In the short term, uncertainty in U.S. tariff policies may lead some downstream clients to adopt a wait-and-see approach regarding expansion. However, in the medium to long term, this uncertainty is likely to accelerate the decentralization of the global apparel supply chain, prompting manufacturers to shift to countries with lower tariff risks, thereby increasing demand for new machines and providing opportunities for leading companies to enhance market share [2]. Industry Growth - In April, the industrial sewing machine export value reached USD 148 million, a year-on-year increase of 23%. Notably, demand from low-tariff risk regions like Egypt, Kenya, and Argentina saw significant growth, with year-on-year increases of 111%, 254%, and 842%, respectively [3]. Labor and AI Integration - The apparel manufacturing industry is labor-intensive, with a potential for significant machine replacement. The report highlights that the company has made milestone progress in high-end product development, including prototypes of high-end AI sewing machines and humanoid robots, which are expected to open new growth avenues [4]. Profit Forecast and Valuation - The company’s projected net profits for 2025 to 2027 are RMB 1.16 billion, RMB 1.28 billion, and RMB 1.38 billion, respectively, with corresponding PE ratios of 16, 14, and 13. The target price has been adjusted to RMB 43.60 based on a revised PE of 18 for 2025 [5][7].

Core Viewpoint - Zhongjie Resources (002021) held a performance briefing on May 16, 2025, discussing its business focus and financial performance amid ongoing changes in shareholding structure [1] Financial Performance - In Q1 2025, the company reported total revenue of 226.54 million yuan, a decrease of 10.37% year-on-year [6] - The net profit attributable to shareholders was 11.56 million yuan, an increase of 13.71% year-on-year [6] - The net profit excluding non-recurring items was 10.97 million yuan, up 16.87% year-on-year [6] - The company's debt ratio stood at 31.76%, with 98.70% of liabilities being current [6] - The gross profit margin was 18.68% [6] Shareholding and Corporate Governance - The largest shareholder, Yuhuan Hengjie, currently has no plans to increase its stake in Zhongjie Resources [2] - The transfer of shares from the largest shareholder to the actual controller has been ongoing for 8 months without completion [2] Business Strategy and Development - The company is focusing on expanding its product chain and increasing production scale while enhancing R&D efforts [3] - Zhongjie Resources aims to integrate new technologies into its manufacturing processes, particularly in smart manufacturing and digital marketing [3] - A strategic cooperation agreement was signed with Qixing Intelligent Technology to strengthen the industrial chain collaboration [5] Industry Outlook - The Chinese sewing machinery industry is the largest in the world, with increasing market shares in Southeast and South Asia [3] - The industry is transitioning from price competition to a focus on technology, quality, and service [3] - Future trends include deep integration of intelligent manufacturing, reshaping of brand images, and the establishment of mature cooperative ecosystems [3]

Group 1: Shareholder and Ownership Issues - The largest shareholder, Yuhuan Hengjie, currently has no plans to increase its stake in Zhongjie Resources [1] - The transfer of shares from the largest shareholder to the actual controller, Yuhuan Guotou, has been ongoing for 8 months without completion [1] Group 2: Financial Performance - In Q1 2025, the company achieved total revenue of CNY 226.54 million, a decrease of 10.37% year-on-year, while net profit attributable to shareholders was CNY 11.56 million, an increase of 13.71% year-on-year [1] Group 3: Business Development and Strategy - The company focuses on innovation in intelligent manufacturing and the integration of electronic information technology with sewing machine manufacturing [2] - Future product development will emphasize the digitalization, networking, and intelligentization of the sewing industry [2] - The company aims to expand its product chain and enhance research and development efforts to drive stable and sustainable growth [2] Group 4: Industry Outlook - The Chinese sewing machinery industry is the largest producer and exporter globally, with increasing market shares in Southeast and South Asia [2] - The industry is transitioning from price competition to a focus on technology, quality, and service, with digital capabilities becoming a key competitive factor [2] Group 5: Financial Health - As of Q1 2025, the company's debt-to-asset ratio is 31.76%, with 98.70% of liabilities being current liabilities [3] - The proportion of interest-bearing debt to total debt is 1.89%, indicating no adverse impact on the company's liquidity [3] Group 6: Competitive Advantage - The company is enhancing the performance of industrial sewing machines and focusing on high-speed, low-tension, high-adaptability, and intelligent features [3] - The goal is to become a leading provider of digital factory solutions in China [3]

杰克股份（603337）公告，股东赵新庆于2025年3月31日至2025年5月12日期间累计减持108.11万股，占 公司总股本的0.2253%；股东车建波于2025年3月31日至2025年5月12日期间累计减持55.07万股，占公司 总股本的0.1148%。赵新庆和车建波合计减持0.3401%公司股份。减持价格区间分别为29.22～36.99元/股 和32.56～38.6元/股，减持总金额分别为3715.68万元和1865.76万元。 ...

Summary of Conference Call Records Company and Industry Involved - **Company**: Softcom Power (软通动力) - **Industry**: PC and AI Technology, Robotics Key Points and Arguments 1. **Upcoming Product Launch**: The HarmonyOS PC is expected to be released soon, coinciding with the Huawei Developer Conference (HDC2025) scheduled for June. The company is recognized as a rare player in the HarmonyOS integrated hardware and software market in China [1][2][4] 2. **Revenue Growth**: For 2024, the software and digital technology services segment is projected to generate revenue of 18.1 billion yuan, reflecting a year-on-year increase of 3%. The computing products and smart electronics segment is expected to achieve revenue of 12.9 billion yuan. In Q4 2024, PC shipments are anticipated to increase by 126% year-on-year, with the company holding the second-largest market share in China. The PC terminal business is the leading player in the government and education sectors [2][4] 3. **AI Collaborations**: The company has formed strategic partnerships for model applications with major players such as Huawei, Alibaba, Microsoft, Baidu, and ByteDance. In the infrastructure domain, it collaborates with Huawei Ascend to build an integrated AI ecosystem. The company has successfully implemented large models in sectors like insurance, retail, and healthcare [2][4] 4. **Robotics Initiatives**: In 2024, the company established the Softcom Tianqing Robotics Technology Co., Ltd. in Wuxi and has partnered with Zhiyuan Robotics to develop humanoid robots for general scenarios [2][4] 5. **Market Positioning**: The company is positioned to benefit significantly from the accelerated development of the HarmonyOS ecosystem, given its unique integrated hardware and software strategy [2][4] Other Important but Possibly Overlooked Content - **Competitor Insights**: The records also mention other companies in related sectors, such as: - **JACK Co.**: Reported a revenue of 1.79 billion yuan in Q1 2025, a year-on-year increase of 10.06%, with a net profit of 250 million yuan, up 30.76% year-on-year. The company is focusing on high-end AI sewing machines and humanoid robots [4] - **Yunsheng Electronics**: Achieved a Q1 revenue of 14.576 billion yuan, a year-on-year increase of 9.78%, with a net profit of 340 million yuan, reflecting a year-on-year increase of 11.08% [4] - **Market Risks**: The documents include a disclaimer about market risks and the need for independent judgment in investment decisions [5]

Core Viewpoint - The meeting focused on "Boosting Consumption and Serving People's Good Life," aiming to transform work styles, conduct in-depth research, and promote high-quality development in the light industry sector. Group 1: Light Industry Development - The China Light Industry Federation emphasizes the need for in-depth industry research to understand new market demands and trends, aiming to innovate and cultivate consumption growth points [1][2] - The China Sewing Machinery Association plans to implement seven major initiatives in 2024 to promote high-quality development, including policy advocacy, skill training, and international market expansion [1] - The China Household Electrical Appliances Association is actively promoting the "old for new" appliance replacement program, leveraging the AWE exhibition to stimulate consumer demand [3] Group 2: Challenges and Solutions - The China Toy and Juvenile Products Association is addressing industry challenges such as tariffs and standards, advocating for the inclusion of certain products in the "old for new" policy [5][6] - The China Sugar Association is focusing on technological empowerment and sustainable practices, with a projected sugar production increase to 11 million tons in the 2024/25 period [7][8] - The China Food Additives and Ingredients Association reported a stable growth in the food additives sector, with a production increase of 3.5% and sales growth of 2.0% in 2024 [9][10] Group 3: Consumer Trends and Innovations - The China Beverage Association reported a record beverage production of 188 million tons in 2024, with a focus on enhancing consumer experience and expanding market reach [15][16] - The China Biochemical Fermentation Industry Association is implementing six practical measures to support industry growth, emphasizing technology and safety [17][18] - The China Industrial Design Association is promoting design innovation to enhance product value and stimulate consumer demand [22][23] Group 4: Sector-Specific Insights - The China Musical Instruments Association identified trends such as the rise of electronic instruments and a growing interest in music among middle-class consumers [28][29] - The China Bicycle Association noted a stable production environment with a significant increase in electric bicycle sales due to the "old for new" policy [30][31]

Investment Rating - The report maintains a "Buy" rating for the company, considering its overseas expansion prospects and active layout in the robotics sector [5]. Core Viewpoints - The company reported a revenue of 1.793 billion RMB in Q1 2025, representing a year-on-year growth of 10.06%. The net profit attributable to shareholders was 246 million RMB, up 30.76% year-on-year, while the net profit excluding non-recurring items reached 226 million RMB, growing by 37.35% year-on-year [2]. - The significant increase in gross margin to 32.79% in Q1 2025, up 2.73 percentage points year-on-year, and a net profit margin of 14.01%, up 2.15 percentage points year-on-year, indicates a notable improvement in profitability [3]. - The company is actively developing AI applications in garment manufacturing, with successful prototypes of high-end AI sewing machines and humanoid robots, positioning itself advantageously in the industry [4]. Summary by Sections Performance Review - In Q1 2025, the company achieved a revenue of 1.793 billion RMB, a 10.06% increase year-on-year. The net profit attributable to shareholders was 246 million RMB, reflecting a 30.76% increase, while the net profit excluding non-recurring items was 226 million RMB, up 37.35% year-on-year [2]. Operational Analysis - The gross margin improved to 32.79%, a rise of 2.73 percentage points year-on-year, and the net profit margin reached 14.01%, an increase of 2.15 percentage points year-on-year. This improvement in profitability is attributed to product structure optimization and increased overseas market presence, with export gross margins at 37.27%, up 3.88 percentage points year-on-year [3]. Robotics Business Outlook - The company is focusing on the integration of AI and robotics in garment manufacturing, with successful prototypes of high-end AI sewing machines and humanoid robots. This strategic move is expected to enhance product value and address industry challenges, thereby improving operational efficiency for clients [4]. Profit Forecast and Valuation - The company is projected to achieve net profits of 964 million RMB, 1.139 billion RMB, and 1.343 billion RMB for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 16X, 13X, and 11X [5].

Group 1 - Jack Shares (603337.SH) released its 2024 annual report on April 15, 2025, indicating that as of April 14, 2025, 293 institutional investors disclosed holding a total of 352 million shares, accounting for 72.88% of the total share capital [1] - The top ten institutional investors include Taizhou Jack Trading Co., Ltd., LAKE VILLAGE LIMITED, Hong Kong Central Clearing Limited, and others, with a combined holding ratio of 64.65%, which is a decrease of 1.74 percentage points compared to the previous quarter [1] Group 2 - In the public fund sector, one fund, China International Capital Corporation CSI 1000 Index Enhanced A, increased its holdings, while 16 funds, including Tianhong Yongli Bond A and Ping An Rui Xiang Cultural Entertainment Mixed A, reduced their holdings, with a decrease ratio of 1.82% [2] - A total of 268 new public funds disclosed their holdings this period, including GF Stable Growth Mixed A and others, while 7 funds were not disclosed this period, including Guotai Junan Jinma Stable Return Mixed A [2] - In the social security fund sector, one new fund disclosed its holdings in Jack Shares, namely the National Social Security Fund 115 Portfolio, while one fund, Dachen Fund Management Co., Ltd. - Social Security Fund 17011 Portfolio, was not disclosed this period [2]

Core Insights - Jack Technology Co., Ltd. reported a revenue of 6.094 billion yuan for 2024, marking a year-on-year increase of 15.11%, with a net profit of 812 million yuan, up 50.86% [1] - The company focuses on intelligent manufacturing in the apparel sector, with significant revenue contributions from its main products, including smart industrial sewing machines and automatic sewing equipment [1][2] Revenue Breakdown - Smart industrial sewing machines generated 5.264 billion yuan, a growth of 14.69% year-on-year [1] - Smart cutting and laying machines achieved 626 million yuan in revenue, up 14.36% [1] - Shirt and denim automatic sewing equipment reached 182 million yuan, reflecting a 25.12% increase [1] Strategic Initiatives - The company has implemented a successful "explosive product" strategy, focusing on flagship products "Fast Response King" and "Overlock King," which have sold 801,300 units as of November 5, 2024, with a GMV increase of 68% during the "Double 11" shopping period [2] - Jack Technology emphasizes a dual strategy of domestic and international sales, achieving 3.128 billion yuan in domestic revenue (up 28.57%) and 2.944 billion yuan in overseas revenue (up 3.30%) [2] Future Plans - In 2025, the company aims to deepen its presence in key markets such as Bangladesh, Vietnam, Cambodia, and Indonesia, focusing on high-end channels and major global clients [3] - The company plans to enhance local operations and improve sales efficiency and service quality in overseas markets [3] Shareholder Returns - Jack Technology announced a cash dividend of 5 yuan per 10 shares, totaling 230 million yuan, with a commitment to a mid-term dividend of 139 million yuan, leading to an expected total dividend of 369 million yuan for the year, representing 45.44% of net profit [3] - The dividend plan reflects the company's strong financial health and commitment to shareholder value, enhancing investor confidence [3]

Core Insights - Jack Co., Ltd. achieved a record high in performance for 2024, with total revenue of 6.094 billion yuan, a year-on-year increase of 15.11%, and a net profit attributable to shareholders of 812 million yuan, up 50.86% [1] - The company successfully navigated global economic pressures through a focus on product strategy, global expansion, and innovation [1] Strategic Execution - The company executed four key strategic initiatives, leading to significant growth in core business areas [4] - The "Focus on Best-Selling Products" strategy enhanced market share for flagship products like "Fast Response King" and "Over-Thread King" [4] - Jack Co. signed contracts with 10 world-class benchmark clients, expanding its large customer base from domestic to international markets [4] - The product line was streamlined to 1,400 SKUs, improving resource allocation efficiency [4] - Quality enhancement initiatives in core product lines led to increased customer satisfaction and NPS scores [4] Global Expansion - Overseas business became a core growth driver, with the company implementing a "Marketing Iron Triangle" model in key international markets [5] - Despite not meeting overseas revenue targets, the company achieved a 37.27% gross margin on overseas products, an increase of 3.88 percentage points year-on-year [5] - The smart sewing industry for shirts and jeans generated sales of 182 million yuan, reflecting a year-on-year growth of 25.12% [5] Innovation and R&D - Jack Co. invested 488 million yuan in R&D, representing over 8% of sales revenue [6] - The company won a first-class award for technological progress from the China National Light Industry Council for its collaborative project with Zhejiang University [6] - A total of 445 patents were filed, including 155 invention patents, and the company contributed to the revision of 23 national and industry standards [6] - Milestone advancements were made in high-end AI sewing machine development, with prototypes like "Jack No. 1" humanoid robot and unmanned template machine being developed [6]