Deep ploughing for more than 20 years, high-quality supplier of outdoor leisure furniture

The company is one of the earliest enterprises engaged in outdoor leisure furniture and supplies industry in China, and has established a complete business system for more than 20 years. Now it has two product series of sunshade products and outdoor leisure furniture, which are widely used in outdoor leisure places, hotels, personal courtyards and other fields. The company attaches importance to the original design of products and has won many international awards. With the advantages of leading R & D and design capabilities and product quality, it has entered the supplier system of large supermarket chains such as Walmart Inc and Costco Wholesale Corp.

Europe and the United States market development revenue increased, profitability gradually recovered

The 21-year revenue was 1.24 billion yuan, an increase of 36.28%, mainly due to the increase in downstream demand and increased sales in e-commerce channels; the 21-year net profit was 108 million yuan, up 34.08%.

The revenue of 22Q1-3 was 1.109 billion yuan, up 18.05% with an increase of 18.05%. The net profit of 22Q1-3 was 54 million yuan, with a decrease of 36.18%, mainly due to the increase in sales expenses and the impact of non-recurrent profit and loss. After deducting non-recurring profit and loss, the net profit of Q1-3 homing in 22 years increased by 46.72%.

In terms of income by products, the income of shade products led the growth, with shade products income of 971 million in 21 years, an increase of 49.15%, accounting for 83.77% (accounting for the main business income, the same below). From a regional point of view, Europe and the United States are the main regions, with a relatively rapid growth rate in Europe. In 21 years, North American income increased by 1.67%, accounting for 54.30%, while European income increased by 361 million, with an increase of 141.31%, accounting for 31.1%.

The steady growth of export sales has great potential for domestic sales, the global import market of advantageous enterprises is large, and the demand for stock replacement in Europe and the United States is stable. In the past 21 years, the global import volume of outdoor leisure furniture and supplies was nearly 42 billion US dollars, an increase of 10.81 percent, while that of the United States was 13.569 billion US dollars, an increase of 27.72 percent. The replacement cycle of this kind of products is short, and the demand for stock replacement is stable. The domestic market has great potential. The domestic market started relatively late, but it has great potential. the market size of outdoor furniture in 21 years is 3.3 billion yuan, an increase of 9.63%.

Good reputation in the industry, close relationship with head customers

After years of accumulation, the company has a good reputation and brand advantages, and has established a multi-level customer structure, including Walmart Inc, Costco Wholesale Corp and other large supermarket chains with global operation, as well as professional brands such as American JEC, Italian FHP, French JJA, etc. With large scale, good reputation and high market position, the company has passed its qualified supplier certification and maintained long-term and stable business cooperation with it.

Continue to push through the old and bring forth the new to optimize the product structure, improve the R & D system to ensure explosive capacity the company attaches great importance to product research and development, and constantly launch new products according to market demand. The continuous launch of new products in 2013-21 has been well received by the market. Take the star canopy as an example, since it was put on the market in bulk at the beginning of 20 years, the sales volume has increased rapidly, and the income has reached more than 100 million yuan in the past 21 years.

The company has developed a set of relatively strict product research and development system to enhance the market adaptability of the developed products, in order to improve the success rate of commercialization of new products. In recent years, the company has done a good job in the pre-design reserve of new umbrella products, and the follow-up is expected to expand the production scale and achieve sales and profit growth.

Establish a marketing experience center to help promote global brands at home and abroad

Establish a marketing experience center, timely grasp the market trend, respond to the diversified needs of customers, form a closed loop of information flow, and guide the company's business decisions. The center is located in Shanghai, on the one hand, it will help brand promotion, expand and maintain overseas customers; on the other hand, it will take into account the trend of domestic outdoor leisure furniture and supplies industry, take Jiangsu, Zhejiang and Shanghai as the center for marketing linkage, and gradually radiate the surrounding area.

Cover for the first time, giving a "buy" rating. In the future, while continuing to consolidate the existing business foundation, the company will continue to focus on the main business, pay attention to the development of new products, create popular styles of explosive products, carry out digital workshops, realize large-scale production, and vigorously invest in business model innovation and brand marketing construction.

We estimate that the annual income of the company from 22 to 24 is 15 yuan, 18 yuan and 2.3 billion yuan respectively, and the return net profit is 1.3,1.7 and 220 million yuan respectively, the corresponding EPS is 1.22,1.54,1.98 yuan per share, and the corresponding PE is 23,19,14x respectively. We predict that the company will have a PE of about 25.1 times in 2023, corresponding to a target price of 38.71 yuan per share.

Risk hints: market competition aggravates risk; highly dependent on foreign market risk; exchange rate fluctuation risk; raw material price fluctuation risk; e-commerce sales channel risk; risk of high customer concentration; new production capacity digestion risk of fund-raising project; operational risk caused by the spread of COVID-19 epidemic; the calculation is subjective and for reference only.