The company is a provider of integrated solutions for clean electrical hoses and accessories, which can meet the diversified and customized needs of customers. It is estimated that the sales share of vacuum cleaner hoses produced by the company in the past ten years is the first in the country. Hose gross profit margin is basically stable at 38%, with high barriers. The gross profit margin of accessories is basically stable at 22%, and the performance can grow at a high speed through category expansion. As a brand designated supplier, the company has accumulated a wealth of high-quality customer resources, and maintains a close relationship with the global mainstream vacuum cleaner brands Midea, Lake, Dyson, Shark, Bisheng and other domestic and foreign well-known clean appliance brands.
The equity is highly concentrated and the incentive mechanism is flexible. The actual control is the Chen Zhengming family, with a shareholding ratio of more than 60%. As the soul of the company, Chen Zhengming is responsible for the management of hoses and accessories.
Chen Kai serves as the general manager of the company and is responsible for the vacuum cleaner processing business. he has a deep understanding of the vacuum cleaner industry chain and the future development trend of clean electrical appliances, and can lead the company to keep up with the trend of the times and reach a new level.
Merger and acquisition of factories in Vietnam and Suzhou, cut into the whole machine industry chain. In 2020, the company entered the whole machine manufacturing business through the acquisition of SUNSTONE in Vietnam and Suzhou Haili (now renamed Shangteng), which can reach 4 million / year production capacity respectively. Chunguang Technology can import high-quality customer resources to empower Shangteng's complete machine business. SUNSTONE in Vietnam has won a lot of orders, and Suzhou Shangteng has also cooperated with a number of brands to get a lot of orders.
The manufacturing of floor washing machine industry has high barriers, and the company has the ability of OEM. Suzhou Shangteng began to develop the floor washer project in 2019, with the OEM capacity of the washing machine, and has reached a cooperation intention with a number of brands. in the future, the company will fully benefit from the improvement of the prosperity of the downstream industry and achieve explosive growth in performance.
Investment advice: according to the assumption, the company can achieve operating income of 1.976 billion, 3.243 billion and 4.113 billion from 2021 to 2023, with year-on-year growth rates of 131%, 64% and 27%. The company's realizable profits from 2021 to 2023 are 230 million, 354 million and 434 million, with year-on-year growth rates of 62%, 54% and 23%, corresponding to 20-25 times PE in 2021.
Risk Tip: the operation and management of the whole machine is not as good as expected.
