IPO purchase proposal:
Sheng Nuo Group is a leading manufacturer and distributor of high quality slow rebound pillows, mattresses and mattresses in the United States, Hong Kong and China. The company has a leading position in the mainstream market in the United States and the retail market in Hong Kong and China. According to Frost Sullivan, Sheng Nuo Group is the second largest supplier of slow rebound health and health care mainstream products in the United States by retail sales in 2013, accounting for 30.2% of the market. and the largest retailer of slow-rebound health and health care products in Hong Kong and China, accounting for 41.9% and 4.4% of the market share, respectively.
The company has established an extensive and international sales and distribution network, which can reach more diversified consumer companies. And developed a multi-brand strategy for different consumer groups. Since the launch of the flagship brand "SINOMAX" in 2001, it has been recognized by the market as a high-quality slow-rebound product brand providing mid-to-high-end markets in Hong Kong and China.
In terms of the international market, the company's "ComforZen" and "Dream Serenity" brands focus on the mainstream health and health care market in the United States, while its authorized brands such as "Sharper Image", "Awaken by Joan Lunden" and "HoMedics" focus on the high-end product market.
As an independent line of business, the company also sells polyurethane foams specially developed for customer needs and requirements under the "East Asia" brand to Chinese furniture manufacturers, including sofa manufacturers, most of which are adjacent to the company's factories. According to Frost Sullivan, Sheng Nuo Group is the largest polyurethane foam manufacturer in China by sales in 2013.
By adopting a vertically integrated business model, the company is able to coordinate new innovations, maintain uniform quality standards and respond to changes in market demand. The company also has excellent R & D team and manufacturing plants in Dongguan, Jiashan and Haining. By the end of 13 years, the total design capacity of these three factories is 75113 tons of foam. Sheng Nuo Group main table 1, the United States slow rebound health and health care products retail market size from 2008 to 2018 (forecast) We believe that the company's industry development prospects are very broad, the future market growth certainty is relatively high, and by virtue of the leading market position and the group's good layout, the company will benefit from market growth in the next few years. Especially in the Chinese market, where the demand for quality products continues to increase and the awareness of healthy living is growing. The company has maintained steady growth in sales revenue and net profit in the past few years. The 13-year price-to-earnings ratio of this IPO share is 5.6-7.4 times per share, which is at the low valuation level of the industry, and the company is financially sound, so we recommend actively applying for the purchase.