Jasan Group(603558) 国盛证券·2024-10-25 00:09Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [3]. Core Insights - The company has demonstrated robust growth in its seamless business and strong profitability in its cotton sock segment, with a revenue increase of 16% year-on-year and a net profit increase of 31% for the first three quarters of 2024 [1]. - The third quarter of 2024 saw a significant revenue growth of 37% year-on-year, driven by the performance of both the cotton socks and seamless business segments [1]. - The company is expected to achieve a revenue growth of over 15% in 2024, with net profit projected to grow by approximately 20% due to increased orders and improved capacity utilization [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 1.92 billion yuan and a net profit of 260 million yuan, with a net profit margin of 13.7% [1]. - The gross margin for the same period improved by 2.7 percentage points to 28.7%, while the net profit margin increased by 1.6 percentage points [1]. - The company’s cash flow remains stable, with a net operating cash flow of 220 million yuan, approximately 0.9 times the net profit for the same period [2]. Business Segment Analysis - The cotton sock business is estimated to have grown by around 20% year-on-year for the first three quarters of 2024, with a notable acceleration in growth in the third quarter [1]. - The seamless apparel segment is projected to have a revenue growth of approximately 5% year-on-year, with a significant rebound in the third quarter, indicating potential for future profitability improvements [1][2]. Capacity and Expansion Plans - The company is currently operating at near full capacity in its cotton sock production and is actively expanding its production capacity to meet increasing demand, with an expected growth of over 10% in cotton sock capacity by 2025 [2]. - Ongoing expansion projects in Vietnam are aimed at increasing production capabilities, including a new facility for high-end cotton socks [2].