Yindu Co., Ltd.: A new global commercial catering equipment star, and one of the few domestic commercial catering equipment companies that export under its own brand. Benefiting from the company's development strategy based overseas and focusing on overseas markets, the company invested heavily in overseas construction in the early stages. It has now entered a harvest period, and the company's share of overseas revenue continues to rise. In addition to existing products, the company lays out new products such as universal steamer ovens and french fries robots, improves the product matrix, and creates a package of suppliers of commercial catering equipment. The new business has strong synergy with the company's traditional advantageous business channels; at the same time, the success path in North America can be replicated in other countries and regions, and the company's development has entered a period of acceleration.
The commercial catering equipment market is growing steadily, and the intelligent track is vast: the industry's consumption attributes and necessities are obvious, and the market size is expanding steadily. According to Grand View Research, the global commercial catering equipment market is expected to maintain a compound annual growth rate of 6.7% in 2020-2027. The market size of commercial refrigeration equipment in 2022 was about US$39.31 billion, and it is expected to maintain a compound annual growth rate of 5.2% in the future. At the same time, the company is actively deploying new products such as universal steam ovens and french fries robots, moving towards automation and intelligence, and opening up new revenue growth points. In 2022, the global commercial smart kitchen appliance market was about 6.6 billion US dollars, accounting for 42%. The CAGR of global commercial smart kitchen appliances is expected to be 17.8% from 2022-2030. The market space is growing rapidly, and the company's active layout is expected to benefit deeply.
Skillfully select markets, focus on production, and focus on channels to create competitive advantages in three areas: On the market side, Yindu Co., Ltd. focuses on overseas markets. After years of development, Yindu has become a commercial catering equipment supplier with a certain brand influence in the US. In terms of production, the establishment of Yindu's factory in Thailand has drastically reduced tariff burdens and production costs, and consolidated the company's cost performance advantage. The cost advantages it brings are difficult to surpass in the short term. In terms of channels, through years of development and maintenance, the company has found an efficient and applicable overseas development path: ① covering a wide range of distribution outlets, ② appropriate dealer incentive mechanisms, ③ “warehouse+fast delivery” model, ④ outstanding after-sales and technical service levels. At present, the company has formed a relatively complete warehousing and after-sales service system across the US, achieving one-stop warehousing, logistics and after-sales service services, and is gradually expanding its market share in the US. The company's efforts in the three areas of market, production and channels have created a unique competitive advantage.
Downstream demand is picking up, market space is expanding, and multi-business collaboration has accelerated development: The US catering industry recovered well after the pandemic. The value added of the US catering industry in 2022 and the absolute value and growth rate of the US catering industry revenue were higher than the average growth rate in the ten years before the pandemic. Furthermore, the National Food Performance Index (RPI) has remained high since 2023, indicating that the catering economy is in a period of expansion and market expansion. Looking at the RPI split, the current state of capital expenditure and expected indicators remain above 100, indicating that restaurant operators are still generally optimistic about capital expenditure and sales indicators for the next few months. Under these circumstances, the company actively lays out intelligent products such as universal steam ovens and french fries robots to collaborate with the original business in order to open up new revenue growth points.
Investment suggestions: We expect the company to achieve revenue of 26.97, 32.36, and 3.721 billion yuan in 2023-2025, yoy +1.3%, 20.0%, and 15.0%, respectively; net profit of 5.23, 6.50, and 810 million yuan; yoy +16.4%, 24.3%, and 24.7%, corresponding to PE 21, 17, and 14 times. For the first time, an investment rating of “buy” was given.
Risk warning: The risk of developing new products falling short of expectations, worsening forms of global trade, and price fluctuations of major materials.