Guosheng Securities: Maintains Buy Rating for Jian Sheng Group, Healthy Growth Meets Expectations

According to the research report by Guosheng Securities, Jian Sheng Group's net profit attributable to the parent company, excluding non-recurring items, is expected to increase by 9% year-on-year in Q2 2026, indicating healthy growth in line with expectations. Order and product structure optimization is anticipated, with revenue growth for cotton socks and seamless apparel expected to be healthy in Q2 2026. The company is deeply engaged in building an international supply chain, strengthening information technology and automation construction domestically, and establishing advantages in large-scale production and near delivery overseas. The company has purchased 300,000 square meters of land in Egypt, with construction expected to begin in 2026. The planned mid-to-long-term construction covers a complete industrial chain base for cotton socks, seamless products, dyeing, and auxiliary materials, enriching the layout of international production capacity and diversifying trade risks. In terms of cash flow, the company expects a net operating cash flow of 110 million yuan in H1 2026, which is about 0.7 times the net profit attributable to the parent company for the same period. As a company specializing in the cotton socks sector, it has advantages in globalization and an integrated production chain, while also strengthening its core management team. The net profits attributable to the parent company are expected to be 405 million, 473 million, and 531 million yuan respectively from 2026 to 2028, corresponding to a 2026 PE ratio of 11 times, maintaining a "Buy" rating.