The vacuum cleaner foundry develops steadily, the floor washer opens the growth space, covers for the first time, gives the "buy" rating company starts from the vacuum cleaner foundry, through the deep binding JS Global Lifestyle Company Limited rapid development; the company focuses on domestic extension customers and extension category, and actively achieve cost reduction and efficiency, to achieve a continuous increase in net interest rate. We are optimistic that the company will maintain steady growth in vacuum cleaner contract manufacturing under the favorable conditions such as tariff reduction, cut into Gaojing gas floor washing machine track with ODM mode, and continue to build income increment with the cooperation of Fangtai kitchenware, JS Global Lifestyle Company Limited and Shun Chuang technology; under the downward trend of raw material prices and RMB depreciation, we are optimistic about the opportunity to repair the company's profit margin. We estimate that the company's 2022-2024 net profit from homing is RMB 288x3x4x4m, corresponding to EPS of RMB 0.72 and 0.93, respectively, and the current share price is 16.7 times PE, which is covered for the first time and given a "buy" rating.
With deep cooperation with JS Global Lifestyle Company Limited and XIAOMI ecological chain, we are optimistic about the steady development of the basic disk of vacuum cleaners and the steady improvement of the scale of the global vacuum cleaner market and the stable market brand pattern. The company is deeply bound to JS Global Lifestyle Company Limited, the global leader in clean electrical appliances, to expand the North American and European markets. In addition, the company is also actively expanding the domestic market, gradually deepening cooperation with XIAOMI ecological chain enterprises such as Shun Chuang Technology. With tariff reduction, RMB depreciation, superimposed plastic particles and other raw material prices further down and other positive, optimistic about the company vacuum cleaner OEM basic plate steady development.
The ODM model cut into the Gaojing air washing machine track, and the company's rubbings category is progressing smoothly. In the first half of 2022, the domestic floor washing machine market was 5.78 billion, an increase of 84 percent over the same period last year. Relying on the technical advantages accumulated by deep ploughing cleaning appliances, the company cuts into the floor washing machine track through the cooperation of Mibo floor washer V6 with Fangtai kitchen utensils, aiming at the pain point where the traditional mop is easy to stink, focusing on the differentiated non-rolling cloth floor brush design. According to Oviyun, the sales volume of Mibo floor washer V6 reached 36.126 million yuan in June, accounting for 3.5% of the market. In addition, we expect that the company will launch new products such as Mibo second-generation floor washing machine, Shark brand floor washing machine and Shun-made brand floor washing machine with Fangtai kitchenware in the way of ODM business, so as to open up the growth space, and is expected to launch its own brand new cleaning nanny products in the follow-up.
Raise funds to solve capacity bottlenecks, help Rio Tinto products and customer relationship deepening companies raise about 600 million yuan through IPO, mainly for capacity expansion, R & D investment and supplementary liquidity. Among them, the capacity expansion plan is about to achieve capacity expansion of 1.3 million wireless lithium vacuum cleaners and 200000 wired vacuum cleaners in China, while setting up a factory in Vietnam to avoid the impact of tariff fluctuations and further deepen cooperation with JS Global Lifestyle Company Limited.
Risk tips: the risk of falling demand for export; the risk that the expansion of new products is not as expected; the risk of rising prices of raw materials.