Core Insights - Jack Technology officially enters the embroidery machine industry, launching two core products: the X7 patch embroidery machine and the X5 finished embroidery machine, with plans to establish a dedicated production base covering 300 acres and a professional team of 1,000 people by 2025 [1] Industry Overview - The industrial sewing machine industry shows signs of bottoming out, with low inventory levels in the apparel sector. The demand in major markets like the US and China is expected to stabilize, leading to a potential inventory replenishment in 2026 [1] - Domestic demand for sewing equipment is projected to recover in 2026 after a significant decline in 2025, where domestic sales are expected to drop to approximately 1.65 million units, a 30% year-on-year decrease [2] - Export demand for sewing equipment is anticipated to exceed expectations in 2026, driven by the ongoing shift of the apparel industry overseas and the need for equipment upgrades [2] Company Developments - Jack Technology's new business initiatives are expected to enhance profitability, as the company gains favor among factories for its high-quality and intelligent products, leading to a steady increase in overseas market share [2] - The AI sewing machine, Ai 10, launched in September 2025, features significant advantages such as an 80% efficiency improvement and a 60% reduction in training time, with orders already being received from major clients in China and Vietnam [3] - The entry into the embroidery machine market is supported by technological synergies and customer base sharing with existing product lines, positioning the company favorably in a market projected to grow from $1.79 billion in 2024 to $2.28 billion by 2029, with a CAGR of 4.7% [3] Financial Projections - The company anticipates revenue growth from 6.4% in 2025 to 17.6% in 2026, reaching approximately 6.49 billion yuan in 2025 and 7.63 billion yuan in 2026. Net profit is expected to grow from 9.2 billion yuan in 2025 to 11.6 billion yuan in 2026, reflecting a 26% increase [5]

Core Viewpoint - The company emphasizes technology innovation as the core driver of its development, committing to invest no less than 8% of its revenue in research and development to enhance product competitiveness and profitability [2] Group 1: R&D Investment and Strategy - The company plans to invest at least 8% of its revenue in R&D to strengthen product and solution competitiveness [2] - The company is implementing a "develop one generation, pre-research one generation, explore one generation" R&D strategy to continuously enhance the intelligence level and market competitiveness of its existing products and services [2] Group 2: AI and Robotics Developments - The company has made significant progress in the "AI + robotics" sector, with the high-end AI sewing machine "Aitu" set to be released in September 2025, receiving positive market feedback [2] - A humanoid robot prototype, integrating AI vision and intelligent fabric grabbing technologies, has been unveiled and is expected to launch in the second half of 2026 [2] Group 3: Future Growth Potential - The company aims to build a comprehensive "software + hardware + AI automation" solution capability for the future of intelligent garment manufacturing, opening up new long-term growth opportunities [2]

Core Viewpoint - The company emphasizes technology innovation as the core driver of its development, committing to invest no less than 8% of its revenue into R&D to enhance product competitiveness and stabilize profitability [1] Group 1: R&D and Innovation - The company has made significant progress in the "AI + Robotics" sector, with the high-end AI sewing machine "Aitu" set to launch in September 2025 and receiving positive market feedback [1] - A humanoid robot prototype, integrating AI vision and intelligent fabric grabbing technologies, has been unveiled, with an official launch expected in the second half of 2026 [1] - The company plans to continue its R&D strategy of "developing one generation, pre-researching one generation, and exploring one generation," aiming to enhance the intelligence level and market competitiveness of its existing products, services, and solutions [1] Group 2: Future Growth Strategy - The company aims to build a comprehensive solution capability for the future of intelligent garment manufacturing, integrating "software + hardware + AI automation," which is expected to open new long-term growth opportunities [1]

Core Viewpoint - The company emphasizes technology innovation as the core driver of its development, committing to invest no less than 8% of its revenue into R&D to enhance product competitiveness and stabilize profitability [1] Group 1: R&D Investment and Strategy - The company plans to invest at least 8% of its revenue into research and development to strengthen product and solution competitiveness [1] - The company is implementing a R&D strategy of "developing one generation, pre-researching one generation, and exploring one generation" to enhance the intelligence level and market competitiveness of its existing products, services, and solutions [1] Group 2: AI and Robotics Developments - The company has made significant progress in the "AI + robotics" sector, with the high-end AI sewing machine "Aitu" set to be released in September 2025, receiving positive market feedback [1] - A humanoid robot prototype that integrates AI vision and intelligent fabric grabbing technologies has been showcased, with an official launch expected in the second half of 2026 [1] Group 3: Future Growth Potential - The company aims to build a comprehensive solution capability for the future of intelligent garment manufacturing, integrating software, hardware, and AI automation, thereby opening new long-term growth opportunities [1]

Summary 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]

Group 1 - Jack Technology's stock increased by 5.19%, reaching a price of 41.32 yuan per share, with a trading volume of 126 million yuan and a turnover rate of 0.66%, resulting in a total market capitalization of 19.686 billion yuan [1] - The company, established on August 27, 2003, and listed on January 19, 2017, specializes in the research, production, and sales of industrial sewing machinery, including industrial sewing machines, cutting tables, and fabric laying machines [1] - The revenue composition of Jack Technology includes 86.87% from smart industrial sewing machines, 10.21% from smart cutting tables and fabric laying machines, 2.71% from automatic sewing equipment for shirts and jeans, and 0.21% from other sources [1] Group 2 - The fund "Puyin Ansheng High-end Equipment Mixed A" holds a significant position in Jack Technology, with 510,300 shares, accounting for 6.6% of the fund's net value, making it the fourth-largest holding [2] - The fund has achieved a year-to-date return of 54.01%, ranking 989 out of 8087 in its category, and a one-year return of 52.15%, ranking 920 out of 8071 [2] - The fund manager, Li Haoxuan, has been in charge for 3 years and 6 days, with the fund's total asset size at 3.425 billion yuan and a best return of 105.27% during his tenure [3]

Core Viewpoint - Jack Technology's stock has shown a mixed performance in recent trading, with a year-to-date increase of 30.90% but a decline of 3.40% over the last five trading days [1] Group 1: Stock Performance - As of December 24, Jack Technology's stock price is 39.25 CNY per share, with a market capitalization of 18.7 billion CNY [1] - The stock has experienced a trading volume of 29.83 million CNY, with a turnover rate of 0.16% [1] - Year-to-date, the stock has risen by 30.90%, but it has decreased by 3.40% in the last five trading days and 16.10% over the last 60 days [1] Group 2: Financial Performance - For the period from January to September 2025, Jack Technology reported a revenue of 4.967 billion CNY, representing a year-on-year growth of 5.53% [2] - The net profit attributable to shareholders for the same period was 682 million CNY, reflecting a year-on-year increase of 10.06% [2] Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders for Jack Technology has increased to 13,500, a rise of 34.46% from the previous period [2] - The average number of circulating shares per shareholder is 34,969, which is a decrease of 25.59% from the previous period [2] - The company has distributed a total of 1.402 billion CNY in dividends since its A-share listing, with 752 million CNY distributed in the last three years [3]

Company Overview - Jack Technology Co., Ltd. is located in Taizhou, Zhejiang Province, established on August 27, 2003, and listed on January 19, 2017. The company specializes in the research, production, and sales of industrial sewing machinery, including industrial sewing machines, cutting tables, and fabric laying machines, as well as important components like motors and electrical controls [1]. Financial Performance - As of September 30, 2025, Jack Technology achieved a revenue of 4.967 billion yuan, representing a year-on-year growth of 5.53%. The net profit attributable to shareholders was 682 million yuan, reflecting a year-on-year increase of 10.06% [2]. - The company has distributed a total of 1.402 billion yuan in dividends since its A-share listing, with 752 million yuan distributed over the past three years [3]. Stock Performance - On December 22, Jack Technology's stock price decreased by 2.00%, trading at 39.11 yuan per share, with a total market capitalization of 18.633 billion yuan. The stock has increased by 30.43% year-to-date, with a 0.85% increase over the last five trading days and a 2.89% increase over the last 20 days, but a decline of 15.73% over the last 60 days [1]. - The company has seen a net outflow of 3.1494 million yuan in principal funds, with large orders accounting for 8.73% of purchases and 11.84% of sales [1]. Shareholder Information - As of September 30, 2025, the number of shareholders increased to 13,500, a rise of 34.46%, while the average circulating shares per person decreased by 25.59% to 34,969 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the fourth largest, holding 14.1993 million shares, a decrease of 1.3565 million shares from the previous period [3].

[证券分析师： Table_Authors] 商俭 S0630525060002 shangjian@longone.com.cn 证券分析师： 李嘉豪 S0630525100001 lijiah@longone.com.cn [晨会纪要 Table_NewTitle] 20251222 [Table_Reportdate] 2025年12月22日 重点推荐 财经要闻 晨 会 纪 要 [table_summary] ➢ 1.商品走势分化，中美的高科技投资持续增长——资产配置周报（2025/12/15-2025/12/19） ➢ 2.美国11月通胀意外放缓，但参考性降低——海外观察：美国2025年11月CPI数据 ➢ 3.杰克科技（603337）：启航新程，科技引领，与客户共谋全球化新篇——公司简评报告 ➢ 1.日本央行宣布加息25个基点 ➢ 2.三部门发布《互联网平台价格行为规则》 ➢ 3.李强主持召开国务院常务会议，对贯彻落实中央经济工作会议决策部署作出安排 证券研究报告 HTTP://WWW.LONGONE.COM.CN 请务必仔细阅读正文后的所有说明和声明 | 1. 重点推荐 | | | 3 | | - ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6]. Core Insights - The company is transitioning from a single machine manufacturer to a provider of complete intelligent manufacturing solutions, focusing on high-end markets and leveraging AI technology [6]. - The new president, who has over 20 years of experience within the company, is expected to drive this transformation and enhance operational efficiency [6]. - The company has seen significant growth in overseas markets, with overseas revenue reaching 1.785 billion yuan, accounting for 53% of total revenue in the first half of 2025 [6]. Financial Projections - Total revenue is projected to grow from 6,093.65 million yuan in 2024 to 8,288.12 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 10.09% [5]. - Net profit attributable to the parent company is expected to increase from 812.27 million yuan in 2024 to 1,303.36 million yuan in 2027, reflecting a CAGR of 17.56% [5]. - The diluted EPS is forecasted to rise from 1.70 yuan in 2024 to 2.74 yuan in 2027, with corresponding P/E ratios decreasing from 23.27 to 14.50 [5]. Strategic Initiatives - The company is enhancing its product offerings with the launch of the high-end brand Aitu, which features AI sewing machines designed to improve production efficiency [6]. - There is a strong emphasis on collaboration with major clients to develop customized solutions and establish digital model factories [6]. - The company has built a sales network of over 8,000 distributors globally and is focusing on empowering these channels to capture market opportunities [6].