Jack Co. (603337): The exchange loss caused the performance to be clearly awaited by the industry recovery

Jack Co. (603337): The exchange loss caused the performance to be clearly awaited by the industry recovery

Jack Co. released three quarterly reports and achieved revenue of 8 in the third quarter.

600 million, down 26 every year.

6%, achieving net profit attributable to shareholders of listed companies of 0%.

6.2 billion, a year-on-year decrease of 59.

5% in the third quarter of a single quarter deducted non-attributed to net profit1.

1.0 billion, an increase from the second quarter.

The first three quarters achieved revenue of 29.

200 million, a decline of 9 per year.

6%, net profit attributable to shareholders of listed companies2.

5.3 billion, down 31 each year.

9%, deducting non-attribution to net profit 2.

6.3 billion, down 32 each year.


Due to the continued sluggish industry demand in the third quarter, the cumulative exchange loss and the high base effect in the third quarter of 2018, the decline in net profit in a single quarter shifted.

Single quarter revenue 8.

600 million, down 26 every year.


We estimate that sewing machine revenue accounts for more than 80%, and the ratio of tailor beds is slightly lower than 20%. In the third quarter, it is expected that the revenue of sewing machines will decline by more than 30%, and the tailor bed will be basically flat.

Domestic and foreign incomes continue to decline, domestic revenues have decreased, and overseas revenues have continued to decline. This is the gradual expectation of the recovery of overseas demand. This is because the company has continued to increase the development of mid-to-high-end areas since 19 years.Some low-end small and medium customers.

The gross profit margin 杭州桑拿网 increased month-on-month due to product structure and exchange rate.

Overall gross profit margin in the third quarter was 29.

6%, an increase from the previous quarter.

The increase in gross profit margin is related to the impairment of the RMB. Because it is a change in product structure, the proportion of tailor bed revenues with high gross profit margins increased in the third quarter, driving up the overall gross profit margin.

Foreign exchange losses caused a significant decline in performance.

Third quarter gross profit 2.

USD 5.6 billion, basically the same as the second quarter. The net profit margin mainly confirmed the loss of large fair value changes, and the loss of fair value changes of 57 million yuan in the third quarter was mainly due to the continuous depreciation of the currency, leading to the 杭州夜网论坛 long-term holding of the company.Cost of book losses on foreign exchange contracts.

The effect of rate control is better.

Since the second quarter, the company has implemented an open source and cost-saving strategy, which has achieved significant results.

In addition to ongoing R & D expenditures, the company better controlled its sales and management expense rates in the third quarter. In the third quarter, where promotional activities are more frequent, the sales expense rate remained at 6.

2%, the management fee rate fell by 4.

9%, the senior management team cut salaries to varying degrees, the whole company went up and down, and together through the downturn in the industry.

Performance forecast and investment advice.

It is expected that revenue will stabilize in the fourth quarter, and profits will increase.

Based on the sales of the general distributors and the expectation of goods delivery, we predict that the company’s fourth-quarter revenue will stabilize and increase from the third quarter. Due to the growth of the base in the fourth quarter of 2018, it is expected that net profit will increase in the fourth quarter.

Predicted annual jack stock income for 2019 of 38.

400 million, attributed to net profit3.

7.3 billion, net profit has improved compared to 18 years.

Although the current demand is still rarely sluggish, referring to the development cycle of the industry’s historical cycle, the probability of controversy will pick up in 2020. At that time, the performance of leading companies that continue to increase market share will be flexible. Gradually lay out Jack’s shares for 2020 performance conversion, and maintain a strong recommendationgrade. Risk reminders: The internal sewing machinery industry continues to grow at a gradual pace; raw material prices rise; exchange rates, liquidity risks, etc.