汕头市纺织服装产业协会副秘书长李瑞萍介绍，汕头作为全国纺织核心产区，产业根基深厚，2023年规 上工业总产值突破1118亿元，文胸内裤、家居服产量占全国60%，锦氨面料产量更是独占全国80%市场 份额，内衣、无缝产品等核心品类年产量稳居全国前列。 "此次对接为我们突破发展瓶颈提供了有效路径。"东莞市富民时尚数字产业投资发展有限公司副总经理 何锐祥表示，虽虎门具备强大的设计研发和快速反应能力，却长期面临高端面料依赖外购的结构性矛 盾。此次合作不仅打通了两地面料采购与服装生产的直接通道，更将依托"织染一体化优质产品+厂家 直供"的核心优势，助力企业降本增效、提升市场竞争力，实现产业链上下游的高效联动。 据透露，已有部分虎门企业通过前期试水，实现生产成本降低15%、新品上市周期缩短20%的显著成 效。值得关注的是，依托汕头国际纺织城的原料集采优势和虎门成熟的电商渠道网络，双方还拟共建跨 境直播基地，探索"前店后厂"新模式。 东莞市虎门服装服饰行业协会荣誉会长朱华泽表示，虎门与汕头两地在面料源头供应和纺织品制造方面 形成优势互补，希望通过精准匹配和产业链深度合作，推动汕头与虎门跨区域产业资源优化配置与深度 融合，共同 ...

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is expected to see a recovery in cotton sock sales as it gradually expands its high-quality customer base and depletes existing inventory. The seamless management is also anticipated to improve profitability, with expectations for customer expansion and volume growth to drive an elastic growth curve. Excluding asset disposal gains, the projected net profit attributable to shareholders for 2025-2027 is estimated at 310 million, 360 million, and 400 million yuan, representing year-on-year changes of -4%, +14%, and +12% respectively. The corresponding price-to-earnings ratios are 13, 12, and 11 times, with a dividend yield of 4.5% based on a 60% payout ratio [2][4][11]. Financial Performance Summary - In Q3 2025, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring gains of 715 million, 167 million, and 102 million yuan, with year-on-year changes of -5.2%, +71.2%, and +7.3% respectively. The increase in non-recurring gains was primarily due to significant gains from the disposal of non-current assets [4][11]. - The report highlights that the gross margin improved by 3.3 percentage points year-on-year and 2.4 percentage points quarter-on-quarter to 31.8% in Q3 2025, driven by improved gross margins in both cotton socks and seamless products. The net profit margin excluding non-recurring gains increased by 1.7 percentage points year-on-year, although the increase was less than that of the gross margin due to a rise in management and sales expense ratios [11][18].

Summary of the Conference Call for Jian Sheng Group Company Overview - **Company**: Jian Sheng Group - **Industry**: Seamless garment manufacturing Key Financial Performance - **Q3 Revenue**: 1.67 billion CNY, a year-on-year decrease of 2.75% [2][3] - **Q3 Net Profit**: 23.53 million CNY, a year-on-year increase of 56.53% [2][3] - **YTD Revenue**: 13.87 billion CNY, a year-on-year decrease of 1.65% [2][3] - **YTD Net Profit**: 253 million CNY, a year-on-year increase of 11.13% [2][3] Performance by Factory - **Vietnam Factory**: Achieved a net profit of over 95 million CNY in the first three quarters, compared to a loss of over 2 million CNY in the same period last year [2][5] - **Guizhou Base**: Maintained stable profitability with slight improvement compared to last year [5] - **Shaoxing Base**: Increased management profit by 50% through loss control [2][5] Business Outlook - **Q4 Expectations**: Performance is expected to be stable or better than the same period last year, with successful new client acquisitions such as Arisa, Brooks, and NB [2][6] - **New Client Orders**: UGG expected to place orders next month, and Lululemon anticipated to place orders early next year [2][6] Challenges and Market Dynamics - **Cotton Socks Revenue Decline**: Due to longer order cycles from Uniqlo, limited dyeing capacity in Vietnam, client order shifts, and poor sales from Puma [2][7] - **Future Growth in Cotton Socks and Seamless Business**: Expected progress in new client acquisition, focusing on the high-end market [2][8] Seamless Business Insights - **Current Operating Rate**: Seamless business operating rate is around 50%, with significant potential for profit margin improvement [4][9] - **Profitability**: Current profit margin for the Vietnam factory is approximately 5%, with expectations to reach double-digit margins through improved management [4][14] Cost Management and Investments - **Cost Reduction**: All bases have reduced production and operational costs, reflecting effective management strategies [5] - **Investment in Automation**: Plans to increase investment in automation and smart factory construction to enhance productivity and employee welfare [4][16] Tax and Revenue Composition - **Tax Rate**: The annual income tax rate is expected to remain around 15% [4][15] - **Revenue Composition**: Revenue from seamless business in Vietnam and domestically is approximately 40% to 60% [4][15] Future Directions - **Focus Areas**: Emphasis on manufacturing, automation, and smart factory initiatives, alongside ongoing share buybacks for long-term investment returns [4][16]

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Views - In the short term, the cotton sock business is expected to see better orders in H2 2025 compared to H1 due to changes in customer ordering patterns. The seamless segment is anticipated to improve further with increased production capacity in Vietnam and new customer acquisitions. Long-term prospects remain positive with a focus on key customers, strong R&D, and cost reduction efforts, leading to stable growth in cotton socks and potential for the seamless segment to become a growth driver [2][5][6]. - The company is projected to achieve net profits of 300 million, 330 million, and 370 million yuan for 2025, 2026, and 2027 respectively, reflecting a year-on-year change of -6%, +7%, and +13%. The corresponding price-to-earnings ratios are expected to be 11, 11, and 9 times, with a dividend yield of 5.3% based on a 60% payout ratio [2][6]. Summary by Sections Financial Performance - For H1 2025, the company reported revenues of 1.17 billion yuan, a year-on-year increase of 0.2%. However, the net profit attributable to the parent company decreased by 14.5% to 142 million yuan. In Q2 alone, revenues were 610 million yuan, with a net profit of 82 million yuan, reflecting a decline of 1.5% and 2.2% year-on-year respectively. The dividend payout ratio for H1 reached 61% [4][5]. Business Segments - **Cotton Socks**: Revenue is expected to remain stable, with profit margins anticipated to improve sequentially. The demand is steady, but the timing of orders from key customers has impacted revenue growth. H2 is expected to see better performance due to the peak ordering season and improved order certainty from some customers [5][6]. - **Seamless Segment**: Revenue is projected to grow steadily, supported by effective management and high-priced product shipments. The profitability is expected to improve as the Vietnamese production base stabilizes and customer structure optimizes [5][6].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [6]. Core Views - The company has shown a narrowing decline in net profit in Q2 compared to Q1, with expectations for improvement in the cotton sock business in the second half of the year [6]. - The company is actively expanding its customer base while maintaining existing clients amidst global consumption challenges and fluctuating trade policies [6]. - The management's confidence is reflected in high dividend payouts and share buybacks, indicating a positive outlook for future performance [6]. Financial Performance Summary - For the first half of 2025, the company reported total revenue of 1.171 billion yuan, a year-on-year increase of 0.19%, while net profit was 142 million yuan, down 14.46% year-on-year [6]. - The cotton sock business faced short-term pressure, with revenue of 839 million yuan, a decrease of 0.7% year-on-year, and net profit of 109 million yuan, down 19% year-on-year [6]. - The seamless business showed stable growth, with revenue of 332 million yuan, up 2.6% year-on-year, and net profit of 32 million yuan, up 6% year-on-year [6]. - The gross profit margin for the first half of 2025 was 28.17%, a decrease of 0.72 percentage points year-on-year, primarily due to increased labor costs [6]. - The report forecasts total revenue for 2025 to be 2.66 billion yuan, with a projected net profit of 311.59 million yuan, reflecting a year-on-year decrease of 4.10% [6]. Earnings Forecast and Valuation - The company is expected to maintain a high dividend payout ratio of 61% and has plans for share repurchases [6]. - The projected earnings per share (EPS) for 2025 is 0.88 yuan, with a price-to-earnings (P/E) ratio of 11.06 based on the current price [6]. - The report anticipates net profits of 312 million yuan, 354 million yuan, and 403 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 11, 10, and 9 [6].

Core Viewpoint - The company's 1H25 performance slightly underperformed expectations due to uncertainties from U.S. tariff policies and weak end-consumer demand, leading to a revenue of 1.171 billion yuan, a year-on-year increase of 0.19%, and a net profit of 142 million yuan, a year-on-year decrease of 14.47% [1][2] Financial Performance - 1H25 revenue was 1.171 billion yuan, with a net profit of 142 million yuan, reflecting a decline in profit margins due to increased costs and reduced orders from major brands [1] - The gross profit margin decreased by 0.7 percentage points to 28.2% in 1H25, influenced by rising management and sales expenses, as well as increased asset impairment losses [2] - The company plans to distribute a cash dividend of 0.25 yuan per share, corresponding to a payout ratio of 62.5% [1] Business Segments - The sock business revenue in 1H25 was approximately 839 million yuan, down 0.7% year-on-year, with net profit declining by 19% to 109 million yuan, resulting in a profit margin of about 13% [1] - The seamless business saw a revenue increase of 2.6% to 332 million yuan, with net profit rising by 6% to 32 million yuan, achieving a profit margin of around 10% [1] Cash Flow and Inventory - As of 1H25, inventory increased by 4.7% to 706 million yuan, while accounts receivable decreased by 1.2% to 511 million yuan, indicating a longer inventory turnover period of 149.2 days [2] - Operating cash flow improved significantly, increasing by 147% year-on-year to 252 million yuan, indicating strong cash flow [2] Future Outlook - The company expects better sock sales in the second half of the year due to concentrated orders from key clients and stable performance in the seamless business [3] - The company is actively exploring new clients and implementing smart manufacturing and cost-reduction strategies despite weak overseas consumer demand [3] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been reduced by 21% and 24% to 296 million yuan and 318 million yuan, respectively, reflecting the impact of weak overseas demand [4] - The target price has been adjusted down by 14.4% to 10.42 yuan, with a potential upside of 8.11% compared to the current stock price [4]

Financial Performance - The company reported total revenue of 1.171 billion yuan for the first half of 2025, a year-on-year increase of 0.19% [1] - The net profit attributable to shareholders was 142 million yuan, a decrease of 14.46% compared to the previous year [1] - The gross profit margin was 28.17%, down 2.5% year-on-year, while the net profit margin decreased by 14.62% to 12.11% [1] - Total expenses (selling, administrative, and financial) amounted to 138 million yuan, representing 11.82% of revenue, an increase of 15.72% year-on-year [1] Cash Flow and Assets - The company reported a significant increase in operating cash flow per share, which rose by 158.08% to 0.71 yuan [1] - The accounts receivable accounted for 157.25% of the net profit, indicating a high level of receivables relative to profit [1][4] - The company’s cash and cash equivalents stood at 340 million yuan, a slight increase of 0.36% [1] Investment and Financing - The company has made a new investment in Hangzhou Chip Union Semiconductor Company [2] - The construction in progress increased by 95.84%, attributed to the investment in the Vietnam project [2] - The company’s long-term borrowings increased significantly by 5495.72%, indicating a rise in debt financing [3] Fund Holdings - The largest fund holding shares in the company is Tianhong Cloud Life Preferred Mixed A, with 406,000 shares, which has seen a decrease in holdings [5] - The fund's current scale is 90 million yuan, with a net value of 1.1733 as of August 7, reflecting a 23.36% increase over the past year [5]