A leading thermos mug company, with major customers helping high growth Jiayi Co., Ltd. is mainly engaged in R&D, production and sales of stainless steel insulation products. It cooperates with well-known international brands through OEM/ODM models, and strengthens its own brand building through self-creation and acquisition methods. It owns brands such as MiGO and ONE2GO. The company's operating income and net profit to mother have continued to grow in recent years, mainly due to rising industry sentiment, continued growth in market size, and gradual increase in the consumption attributes of industry products.
The product structure is rich and diverse, and high-quality customers help development
After years of development, the company's products have formed two major series: stainless steel vacuum insulated vessels and non-vacuum containers. Stainless steel vacuum insulation containers cover various types of products such as thermos cups, thermos pots, thermos bottles, etc., and have the advantages of good insulation, safety and portability, energy saving and environmental protection, stylish appearance, and rich functions; non-vacuum containers mainly include car cups, plastic cups, glasses, etc. The revenue of the metal products industry in 2023 was 1,725 billion yuan, up 40.33% year on year, accounting for 97.18% of total revenue. In 2016-2023, the sales volume of the company's metal products industry increased from 19.4452 million units to 38.1295 million units, with a CAGR of 40.03%; the unit price increased from 30.12 yuan to 46.56 yuan, and the CAGR was 24.34%. The main customers that the company has cooperated with for a long time are well-known international brands of stainless steel vacuum insulation vessels. The main customers are famous international brands such as S'well, MiIR, and TAKEYA. In 2023, the company's top five customers had total sales of 1,706 billion yuan, and their sales amount accounted for 96.11% of total annual sales, of which Pacific Market International LLC accounted for 84.91% of total annual sales.
Demand for thermos cups continues to be strong, supporting the expansion of production capacity
The global thermos mug market is in high demand, and China's thermos exports have continued to rise in recent months. The company issued convertible bonds to unspecified targets to raise a total capital of no more than 39,79384 million yuan for Vietnam's production and construction project with an annual output of 13.5 million stainless steel vacuum thermos cups and a production line construction project with an annual output of 10 million stainless steel vacuum thermos cups, actively expanding the layout of overseas production bases, speeding up the global layout, and expanding production capacity to support strong order demand.
Investment advice
Demand for thermos cups continues to be strong, and the company's high-quality customers help the development. The company's product structure is rich and diverse, supporting production capacity expansion, and subsequent performance is expected to continue to grow. We expect the company's 2024-2026 revenue to be 23.07/28.07/3.398 billion yuan, respectively, up 30.0%/21.7%/21.0% year on year; net profit to mother will be 598/7.17/ 867 million yuan, respectively, up 26.7%/19.9%/20.9% year on year. As of June 21, 2024, the total share capital and EPS corresponding to the closing market value were 5.75/6.89/8.33, respectively, and the corresponding PE was 15.39/12.83/10.61 times, respectively. First coverage, giving a “buy” rating.
Risk warning
International macroeconomic downturn risk, international trade friction risk, raw material price fluctuation risk, RMB exchange rate fluctuation risk, major customer concentration risk.