The Zhitong Finance App learned that Guotai Junan released a research report saying that VESYNC (02148) has a stable market position in the core category, traditional categories are constantly being iterated, and new vacuum cleaners, pet feeders, rice cookers, etc. are expected to bring in new volume. The company's net profit for 2023-2025 is expected to be US$0.63/0.71/78 billion, +US$83 million/ +12%/+10% year-on-year, with an “increase” rating.

▍ Guotai Junan's main views are as follows:

The penetration rate of the cross-border e-commerce export industry has increased rapidly, and the company has a significant competitive advantage in the Amazon platform.

China's cross-border e-commerce export penetration rate has increased dramatically in recent years, and Amazon is one of the most important channels for cross-border e-commerce exports. As a high-quality small home appliance company on the Amazon platform, the company has formed a strong barrier after more than 20 years of intensive cultivation.

First, compared with domestic and overseas brands, Vesync's management has many years of experience living in the US, has a deep understanding of the local market, and already has a mature team in the US, covering all aspects of market research, consumer insight, product design, content marketing, user maintenance, and after-sales service. Second, compared with local brands offline in the US, Vesync can quickly improve products online based on user feedback and comments, and can also rapidly iterate products using an asset-light model by opening up the Chinese supply chain and the US market.

Through category expansion, the company is expected to exceed expectations in terms of performance.

At the category level, in the Levoit brand, the company launched a new vacuum cleaner, which has been ranked No. 1 in the German market Bestseller within a quarter, showing the company's strong potential for promotion. At the same time, in traditional categories of purifiers, it explores more scenarios such as mother, baby, pet, etc., and shows richer functions in products at the same price, and subsequent sales performance is expected to exceed expectations.

Among the Cosori brands, the company's air fryer technology is at the forefront of the industry. It is the first air fryer in the industry to use a DC motor, which drastically shortens cooking time. With increased marketing in this category in 2024, subsequent performance is expected to lead the industry. At the same time, the company's pet feeders, rice cookers, etc. are expected to receive additional volume. At the channel level, after years of intensive online cultivation, the company has accumulated a certain brand advantage, which is more helpful for the company to enter overseas offline markets.

Risk warning:

Fluctuations in shipping costs have brought some uncertainty on the cost side, and the pace of new product launch falls short of expectations, etc.