JACK(603337) 华泰证券·2025-01-24 01:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 40.80 RMB [7][8]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 760 to 860 million RMB in 2024, representing a year-on-year increase of 41% to 60%, with a median estimate of 810 million RMB, which aligns with expectations [1]. - The company is capitalizing on the slow recovery in the industry and is focusing on product upgrades through its "Double King" marketing strategy, leading to rapid growth in performance [1]. - The report anticipates that the company's overseas business will gain momentum in 2025, alongside continuous product upgrades [1]. Summary by Sections Performance Forecast - The company is projected to have revenues of 6.617 billion RMB in 2024, with a growth rate of approximately 25% compared to the previous year [6]. - The net profit attributable to shareholders is expected to be 803.88 million RMB in 2024, reflecting a growth of 49.3% [6]. - The earnings per share (EPS) is forecasted to be 1.66 RMB in 2024, increasing to 2.40 RMB in 2025 [6]. Market Outlook - The domestic market for sewing machines is expected to see total sales of approximately 7.2 million units in 2024, slightly below the average of the past six years [4]. - The report highlights a moderate recovery in overseas garment manufacturing, with Vietnam's textile exports increasing by 19% year-on-year in Q4 2024 [2]. - The company successfully held a dealer conference in Sri Lanka, emphasizing its strategy to build a "product army and marketing army" to boost sales in India, targeting 100 million USD in sales by 2025 [4]. Valuation Metrics - The report maintains previous profit forecasts, estimating net profits of 8.0 billion, 11.6 billion, and 12.8 billion RMB for 2024, 2025, and 2026, respectively [5]. - The company is valued at a price-to-earnings (PE) ratio of 17 times for 2025, with a target price adjustment from 43.2 RMB to 40.8 RMB [5]. - The report indicates that the company's PE ratio is expected to decrease from 18.26 in 2024 to 12.67 in 2025, reflecting improved profitability [6].