JH Group(603518) 天风证券·2024-10-09 10:03Investment Rating - The report maintains a "Buy" rating for the company with an expected relative return of over 20% within the next six months [6][14]. Core Insights - The actual controllers of the company fully participated in the private placement, indicating confidence in the company's future [1][3]. - The funds raised from the private placement, not exceeding RMB 200 million, will be used to supplement working capital and repay bank loans, which will help optimize the capital structure and reduce financial expenses [1][2]. - The company is expected to see a steady recovery in the domestic apparel market, supported by various measures to promote consumption [4][6]. Financial Performance Summary - The company's revenue for 2022 was RMB 3,899.50 million, with a projected growth rate of 16.55% in 2023, reaching RMB 4,544.93 million [5][10]. - The net profit attributable to the parent company is expected to increase from RMB 71.41 million in 2022 to RMB 297.62 million in 2023, reflecting a growth rate of 316.76% [5][10]. - The earnings per share (EPS) is projected to rise from RMB 0.21 in 2022 to RMB 0.86 in 2023, with further increases expected in subsequent years [5][10]. Capital Structure and Financial Ratios - The company plans to use part of the raised funds to repay bank loans, which will lower the asset-liability ratio and improve the overall financial structure [2][8]. - The financial expenses are expected to decrease significantly, from RMB 2.2 billion in 2021 to RMB 0.3 billion in the first half of 2024, enhancing profitability [2][9]. - The company's price-to-earnings (P/E) ratio is projected to decrease from 41.44 in 2022 to 9.94 in 2023, indicating improved valuation [5][10].