A leading manufacturer of thermos cups, growing together with high-quality customers. The company is deeply involved in the R&D, production and sales of stainless steel thermos products, and has deep cooperative relationships with internationally renowned thermos manufacturers such as PMI, TAKEYA, and S'well, with remarkable strategic results for major customers. The company's revenue grew from 0.356 billion yuan in 2020 to 1.775 billion yuan in 2023, with a CAGR of 70.92%, and net profit to mother increased from 0.065 billion yuan in 2020 to 0.472 billion yuan in 2023. The CAGR was 93.81%, and the company's gross margin was 40.72% in 2023, a record high.
The insulated ware industry recovered rapidly after the epidemic, and design and superposition marketing helped popular products get out of the market. According to the Huajing Industry Research Institute, the market size of the global insulated ware industry grew from 44.2 billion yuan in 2017 to 52.8 billion yuan in 2021, with a CAGR of 4.54% during the period. According to Euromonitor data, in 2023, China's per capita ownership of stainless steel containers was only 0.68, while the average American owned 0.8, and the Japanese had 1.43 per capita, so China's stainless steel insulation vessels have great potential for future development. This year, the Quencher series water cups under the Stanley brand were enthusiastically sought after by young consumers. Combined with joint cooperation and brand marketing, the product has exploded. As its main supplier, Jiayi Co., Ltd. may continue to benefit.
We are deeply tied to high-quality customers, and production capacity can be expected to be released in the future. The company has firmly implemented the big customer strategy and established long-term and stable cooperative relationships with high-quality major customers. Not only does it include the continuous volume of Stanley's popular series orders, but other customers such as Starbucks and Lululemon have also achieved high growth performance. The company continues to increase investment in R&D and respond to customer needs in a timely manner. In addition, the company is also expanding production capacity through fund-raising projects. In addition to the 10 million stainless steel vacuum thermos cup production base, Vietnam has a global layout of 13.5 million stainless steel vacuum thermos production and construction projects to continuously improve order responsiveness and customer satisfaction.
Investment advice: The company is expected to achieve revenue of 2.308/2.749/3.236 billion yuan in 24/25/26, respectively, up 30.0%/19.2%/17.7% year on year; net profit to mother of 0.615/0.741/0.868 billion yuan, up 30.2%/20.5%/17.2% year on year. I am optimistic about the company's strong ability to obtain orders and performance-driven sustainability brought about by unleashed production capacity. For the first time, coverage gave it an “increase in holdings” rating.
Risk warning: raw material price fluctuation; exchange rate fluctuation; risk of cooperation with major customers; risk of domestic and foreign environmental changes.