Main points of investment:

Sports outdoor field started in 2016, under the consumer goods industry, has initially formed a "product design + intelligent manufacturing" system. With product design, precision mold design and development, multi-process integration and intelligent manufacturing as the core, the company is engaged in the R & D, production and sales of consumer goods such as sports outdoor, home life, health care and so on. The company belongs to the consumer goods industry ① Sports Outdoor: the policy guides the superimposed consumption recovery, and the added value of China's sporting goods industry shows an overall growth trend; ② household goods: household electric construction in developed areas of Europe and the United States has a rigid demand, and China has now become a big manufacturer and foreign trade exporter of power tools in the world. ③ Health Care: the Great Health track has growth potential. The penetration rate of electric toothbrushes in China is about 10%, and there is room for growth.

Revenue and profits are under short-term pressure, the layout of the three major tracks is stable, and it is expected to stabilize and pick up in the future. In 2020-2023Q1, the year-on-year changes in operating income were 18.74%, 37.23%, 2.01%, 18.58%, respectively, and the year-on-year changes in net profit were 118.41%, 45.55%, 0.22%, 8.00%, respectively, and the proportion of total sales income of sports, outdoor and household products in 2018-2022 basically maintained about 90%. The demand for daily necessities was rigid, cost-effective and cost-effective, with large customers and a wide range of channels. The anti-risk ability is strong, and it can be expected to stabilize and pick up in the future.

The core advantage is significant, the main customer relationship is stable, and create an one-stop flexible global delivery service.

The company has established long-term and stable cooperative relations with Decathlon, Ikea, Wagner, YETI and other global leading multinational companies, and at the same time continues to expand international well-known enterprises. The company cooperates with core customers mainly in JDM mode, with a high gross profit margin. The revenue of 2022H1JDM cooperation model reaches 319.4157 million yuan. The company's products have the characteristics of "multi-category, small batch and customization". The gross profit margin of 2019-2022H1 main business is respectively.

25.53%, 25.98%, 24.65%, 24.05%, which is relatively stable as a whole. At the same time, pay attention to core technology and product research and development, R & D revenue increases year by year, accounting for about 4% of revenue, committed to providing customers with high-quality, low comprehensive cost, stable and reliable product design and manufacturing solutions.

Raise funds for investment projects in line with the future development plan, new production capacity or better enhance the supply capacity to customers. After the company has completed all the fund-raising projects and reached production, the average annual increase in operating income is expected to reach 867.229 million yuan. Under the influence of fully considering depreciation and amortization factors, the annual net profit will be 106.6686 million yuan after fully reaching production.

Profit forecast and rating: Tongda Chuangzhi has stable relationships with major customers of Decathlon, Ikea, Wagner, YETI and other international well-known enterprises, Genting information and other new customers are expected to bring increment, stable R & D and innovation capabilities, fund-raising projects in line with planning, clear long-term growth path, coverage for the first time, giving "buy" rating. We estimate that in 2023-2025, the company will achieve revenue of 960.40 pesque 1187.80 pesque 1545.00 million, with an increase of 3.13%, 23.68%, 30.07%, and a net profit of 132.25, 164.48, and 213.18 million, with an increase of 0.47%, 24.37%, 29.61%, corresponding to 21.61X/17.38X/13.41X, respectively.

Risk hints: the risk of raw material price fluctuation, the pressure of overseas demand exceeding expectations, RMB exchange rate fluctuation and international inflation, the uncertain risk of epidemic disturbance, the risk of intensified competition in the industry, the risk of exchange rate fluctuation, China and the international market are not completely comparable, the relevant data are for reference only.