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Jack Co. (603337) Semi-annual Report Review: Industry Downturn Focuses on Development

Jack Co. (603337) Semi-annual Report Review: Industry Downturn Focuses on Development

The performance in the first half of the year was slightly lower than expected, and various 北京夜生活 business income was stable.

The company achieved revenue of 20 in the first half of the year.

5.2 billion, a slight increase of 0 a year.

1%; of which Q2 revenue is 9.

1.7 billion, down 6 every year.


In terms of products, the sewing machine business achieved revenue of 17%.

5.7 billion, down 1 year.

2%; cutting bed and spreader business achieved revenue 2.

26 ppm, a decrease of 5 per year.

9%; shirt and denim automatic sewing equipment business achieved zero revenue.

670,000 yuan, an increase of 109 in ten years.

4%, mainly due to the consolidation of new VBM, VBM and Maika revenue improved in the first half.

In terms of regions, foreign revenue was 10%.

14 ppm, an increase of ten years.

3%, domestic revenue of 10.

3.6 billion, down 1 year.


The gross profit margin generally declined slightly, and the cost of price stabilization rose.

In the first half of the year, the gross profit margin decreased by 0 compared with the same period last year.

5 pct to 26.

92%, of which Q2 gross margin is 28.

02%, 0 per year.

2 pct.

By region, the gross margin of foreign operations increased by 1.

1 pct, mainly due to the significant depreciation of the RMB over the same period; the gross profit margin of domestic business decreased by 2.

17 pct, mainly due to: 1) the increase in output and fixed costs; 2) the increase in domestic sales of simple tailoring beds; 3) the increase in material costs.

In terms of different products, the gross profit margin of sewing machines remained stable; the gross profit margin of sewing machines decreased by 2.

The 23 maximums are mainly due to the gradual increase in the number of simple tailor beds, which will affect the gross profit margin of the tailor bed business; the gross profit margin of the shirt and denim business will decrease by 14.

The four single ones are mainly due to the decline in sales in Italy, which leads to an increase in fixed costs per unit.

The increase in expenses resulted in a decrease in net profit and an improvement in cash flow.

The company achieved net profit attributable to mothers in the first half of the year1.

92 ppm, a decrease of 12 per year.

91%; deduct non-attributed net profit1.

62 ppm, a decrease of 22 per year.


Q2 net profit is 0.

74 million, down 28 each year.5%.

2019H1 selling expenses cost 5.

4%, rising by 0 every year.

7 pct, mainly because the company took a series of promotional activities during the period of low industry demand;

7%, rising by 0 every year.

6 pct; finance costs 0.

29%, rising by 0 every year.

7 pct, mainly due to the increase in short-term expenditures leading to increased interest expenses.

The comprehensive net margin is 9.

44%, down by 1 every year.

3 pct.

The cash flow situation has clearly improved, mainly due to the adjustment of the supplier payment policy in the first half of 2018. The cash payment policy in the first half of this year continued but has returned to normal levels after a year.

Demand at home and abroad has fallen as a whole, and the company’s performance has consolidated industry conditions.

From January to May 2019, more than 100 backbone machine enterprises gradually produced sewing machinery and equipment 249.

80,000 units, down 13 before.

2%; sales of 2 million industrial sewing machines, exceeding the decline of 6.

6%; cumulative sales revenue is about 72.

800 million, down 10 a year.

1%, the company’s sewing machine business revenue decreased by 1.

2%, better than the industry situation, the market share has further increased.

From January to June, 1.93 million industrial sewing machines were exported upstream, a year-on-year decrease of 3.

9%, export value 6.

USD 3.0 billion, an annual increase of 2.


The anti-capacity production layout has consolidated the industry segmentation.

The company has an undistorted construction and expansion of production in accordance with the original plan. The construction in progress in the first half of the year increased by 1 trillion yuan, of which 0.

$ 700 billion Jack Smart Factory, 0.

21 trillion Jiaojiang Industrial Park.

Continue to invest in research and development to improve product quality. In 2019H1, 66 invention patents, 34 utility models, 8 design designs, and a total of 108 items were authorized.

In June, the company ranked No. 1 among the top ten enterprises in China’s sewing machinery industry in 2019.

Maintain “Overweight” rating: The company’s EPS for 2019-2021 is expected to be 0.

9, 1.

0, 1.

1 yuan, the current price corresponds to 20.

8, 19.

5, 17.

1x PE.

Risk Warning: The industrial sewing machine industry is weaker than expected, and the RMB has appreciated significantly.