A leading company in door and window hardware, the culmination of fragmented businesses. Door and window hardware has the characteristics of “multiple varieties, multiple customers, and multiple orders”. Even in an age where the domestic urbanization rate is rapidly increasing and demand for housing construction is developing rapidly, the industry still shows delivery characteristics such as multiple categories, small batches, high requirements, and short delivery times. These characteristics place high demands on enterprises for a range of management capabilities from sales, operation, inventory to delivery. As an industry leader (estimated to have a market share of 8.79% in 23 years), Jianlang Hardware has achieved great results in scattered businesses: 1) connect with customers through a direct sales model (accounting for more than 99% of revenue), be close to market needs, provide quick and efficient feedback, and improve customer stickiness; 2) Improve efficiency with comprehensive and professional information management capabilities. All mainstream business systems use system platforms provided by ORACLE, the world's largest system integration solution provider, covering and integrating supply chain, customer relationships, planning, manufacturing, cost and financial management to open up the entire end-to-end business chain; 3) Warehouse-based sales. 34 warehouses have been set up in all provincial capitals and municipalities directly under the Central Government, and 15 warehouses have been set up overseas to quickly respond to customer supply needs.

Expand categories, expand categories, strengthen management, high collaboration, and build a strong foundation for integrated supply. The building materials and home furnishing stock market has gradually arrived, and the company's medium- to long-term anchoring integrated supply platform strategic goals: 1) expand categories, and is currently the most integrated supplier of construction components among domestic A-share listed companies, with a layout of more than 100 categories; 2) Sinking and actively developing county and city markets, accounting for more than 20% of revenue in 23 years; 3) Management continues to be upgraded and strengthened, and information management systems are being developed in a targeted manner according to the business model. Develop strong clouds for B-side customers, build a pan-home online platform “Home Beauty” for C-side users, and collaborative construction categories such as “Home Beauty” The scenario is to build a “craftsmanship” online platform to meet the needs of “one-stop service” (product, solution integration+installation service+after-sales service) and build an engineering project collaboration platform (PMS); 4) High collaboration, the company serves nearly 0.05 million customers each year, laying a good channel foundation and customer base for products other than traditional categories such as door and window curtain wall hardware, door control hardware systems, and stainless steel fence components. Other categories of products can make full use of the company's existing sales channels to share benefits. With multi-dimensional efforts, the company is expected to replicate the business knowhow of the scattered door and window hardware business into the management of multiple categories of businesses, and truly create an integrated and efficient one-stop service platform for B-side customers.

Profit forecast and investment rating: The company's 24-26 revenue is expected to be 7.426, 8.162, and 9.159 billion, respectively, -4.82%, +9.91%, and +12.22%, respectively; net profit to mother is 0.367, 0.459, and 0.54 billion, respectively, +13.33%, +24.87%, and +17.73%, respectively. The corresponding PE is 21.02, 16.84, and 14.3, respectively. The company is a leader in fragmented businesses, with high operating efficiency and construction hardware business The barriers are deep, and strategic efforts are being made to build an integrated supply platform. It was covered for the first time, and it was given a “highly recommended” rating.

Risk warning: The channel has fallen short of expectations; demand for real estate has declined sharply; the expansion of new categories falls short of expectations.