JACK(SH:603337)2025-12-31 16:02Summary of Jack Technology Conference Call Company Overview - Jack Technology is a leading player in the sewing machinery industry, benefiting from trends in automation and AI applications within the apparel sector, particularly in regions with high labor costs [2][6] Key Insights and Arguments - The company aims to achieve automation in the apparel industry, having already implemented high levels of automation in pre-sewing and post-sewing processes, with a focus on breakthroughs in the sewing phase through the development of new flexible units based on large models and physical AI technology [2][8] - Jack's AI sewing machines incorporate cameras for visual and intelligent feedback, reducing worker training time and enhancing product value. The company plans to launch a full range of AI products by 2026, further widening the technological gap with competitors [2][12] - The introduction of AIGC technology has improved template machines, enabling automatic generation of cutting plans and significantly enhancing design efficiency. AI technology has notably increased product profit margins, with AI sewing machines priced approximately three times higher than traditional products [2][14][16] Market Performance - Jack Technology has seen significant growth in overseas markets, benefiting from competitors' insufficient investment in AI. Major clients are increasingly turning to Jack for industrial upgrades and cost reduction. The new president has directed strategic resources towards expanding large client relationships [2][17] - The sewing machinery industry is cyclical, with a projected domestic market decline of 30%-40% in 2025. However, the overseas market is performing well, and the domestic market is expected to stabilize or slightly increase in 2026, indicating that the industry will not hinder Jack's growth [4][6] Unique Advantages in AI Applications - Jack Technology possesses unique advantages in AI applications, including a suitable industry scenario for robotic applications due to low equipment costs and high labor costs. The company aims for not just product upgrades but a complete automation of the apparel industry to enhance overall value [7][11] Future Goals and Product Planning - Jack has a clear product roadmap, aiming for machine performance upgrades and the integration of robots by 2026. The long-term goal is to achieve fully automated production in the apparel industry by 2028, transitioning from labor-intensive to capital-intensive manufacturing [11][18] Innovations in Systems and Technologies - The company is innovating in its hanging system, which automates the transmission of garments, significantly improving efficiency. An AI hanging system is being developed to optimize capacity allocation and enhance production efficiency [13] - Jack's AI sewing machines are designed to provide real-time feedback to users, improving the overall user experience and reducing training time [12] Investment Perspective - Jack Technology's current valuation is relatively low compared to historical levels, with significant future growth potential. The template machine market alone could generate a market increment of 30-40 billion RMB annually. The company is viewed as a strong investment choice due to its safety margin, upside potential, and the increasing heat of domestic supply chains [4][18]