Zhitong Finance APP learned that Pacific Securities issued a research report stating that it maintains a "buy" rating on Vesync (02148). Net profit for the company is expected to be 96/114/131 million US dollars from 2024-2026, corresponding to EPS of 0.08/0.10/0.11 US dollars. Overseas small household appliances have high prosperity, and air purifiers, humidifiers, and air fryers lead the brand growth. 1) On the industry side, overseas market demand is gradually picking up and is in the replenishment stage, and the scale of the small household appliance industry is expected to continue to increase. 2) On the company side, the existing three major brand product matrices continue to enrich, and advantageous categories such as air purifiers, humidifiers, and air fryers are expected to lead the company's revenue and performance continue to grow rapidly.

The main points of Pacific Securities are as follows:

Levoit: Continuously consolidating the leading advantages of environmental appliances and actively expanding new product categories such as vacuum cleaners and fans.

1) Environmental appliances: In 2023, the company's sales of air purifiers and humidifiers in the US market continue to lead the market share, and tower fan products are selling well in the European and American markets. 2) Cleaning appliances: The company is actively laying out new product categories such as vacuum cleaners. The cleaning method and usage scenarios of LVAC-200, a pet-friendly vacuum cleaner launched in 2023H2, are rich, and differentiated competitive advantages are more prominent.

Cosori: The air fryer business in the European market is growing rapidly, and the product's DC motor and dual-frying basket design are expected to help drive growth.

Pacific 1) On the industry side: The global air fryer market has a wide range of growth, and the market size is expected to reach 1.431 billion US dollars in 2028, with a CAGR of +7% from 2023-2028. Structural highlights are present in the United States, Germany, and India. 2) On the company side: The channel layout is diversified and the European market performance is more prominent. In 2023, it maintains a leading market position in Spain and Norway with a market share of approximately 31.5% and 43%, respectively. The company’s DC fryer new product and the dual-frying basket designed product are expected to better meet the needs of overseas consumers, thereby providing momentum for the company’s business growth.

Etekcity: Focusing on health monitoring and personal care equipment, AI-enabled interactive experience with Vesync APP is expected to enhance.

According to GWI's forecast, the global health economy market size may reach 847 million US dollars in 2027. As a brand that continues to deepen its presence in the health monitoring equipment field, Etekcity is expected to share in the industry's growth dividend. At the same time, many products under the brand support connection to the Vesync application program, which realizes data tracking and encourages users to cultivate good living habits through diet advice and goal management. The line believes that the company’s hardware, together with the interactive experience of the Vesync APP, is expected to be enhanced under the empowering of a large AI model, helping users build a healthier living environment and habits in all aspects.

Risk warning: exchange rate fluctuation risk, production factor price fluctuation risk, overseas geopolitical risk, marine transportation capacity tension risk, talent training and development risk, etc.