维持盈利预期及“增持”评级。我们维持公司盈利预期，预计2024-2026 年公司EPS 为2.08/2.33/2.56 元。参考可比公司估值，考虑公司在品牌力建设及渠道管理维度优势给予的估值溢价，给予公司2025 年19XPE，维持目标价44.19 元，维持“增持”评级。Introduction to this report:
Industrial chain mergers and acquisitions began, and overseas expansion accelerated.
Key investment points:
Maintain profit expectations and “gain” ratings. We maintain the company's profit expectations. The company's EPS is expected to be 2.08/2.33/2.56 yuan in 2024-2026. Refer to comparable company valuations, consider the valuation premium given by the company in terms of brand power building and channel management, and give the company 19 XPE in 2025, maintain the target price of 44.19 yuan, and maintain the “gain” rating.
Acquisition of mattress brands and ancillary supply chains. The company plans to acquire MIPL (MattressInternational Pte.) for 46 million Singapore dollars in cash through its wholly-owned subsidiaries Mousse International Holdings and Mousse Bedding (Hong Kong). Ltd.) 100% of the company's shares, and PTTC (PT. (Tai Cheng Development) Company Specific Assets. MIPL is a well-known domestic product sales company such as bedding and sofas in Singapore, and has its own brands such as Maxcoil, Viro, and MoozzZ.
PTTC has a production base in Batam, Indonesia, and mainly produces household goods such as bedding and sofas for MIPL. 1) The consideration for MIPL's share acquisition was SGD 22.32 million. In 2023, MIPL achieved net profit of SGD 0.3679 million, corresponding to 60.67X PE; as of September 30, 2024, MIPL's net assets were SGD 14.1045 million, corresponding to 1.58X PB. 2) Target assets are specific operating assets necessary for PTTC to manufacture household items such as bedding and sofas, including but not limited to assets such as land, plant, machinery, equipment, inventory, and cash and accounts receivable generated from these assets, at a consideration of SGD 23.68 million.
Mergers and acquisitions kick-start overseas expansion. The acquisition is in line with the company's international development strategy, which is conducive to improving the layout of the company's overseas production base, broadening the company's overseas sales channels, and accelerating the company's internationalization process. At the same time, taking advantage of MIPL's extensive and efficient sales channels and brand advantages accumulated over many years of operation in Southeast Asian regions such as Singapore and Indonesia, it helps the company accelerate its layout in the Southeast Asian market and increase the company's overseas market occupancy rate.
Omni-channel and multi-category development, focusing on lean operation. The main Mousse brand is guided by boosting performance, and has launched and implemented a series of key initiatives. Through product differentiation and competitiveness analysis, targeted de-homogenization, product SPU is streamlined, and the focus is on core products to effectively reduce costs, improve quality, and expand volume. Create popular packages by selecting strategic products with core materials, focus on marketing resources to achieve breakthroughs, and effectively increase sales of high-end products at dealers.
Risk warning: Prices of raw materials continue to rise, downstream consumer demand falls short of expectations, etc.
