Xinbao Shares (002705): The Western Expeditionary Champion’s Domestic Sales Road Receives Domestic Consumption Upgrade Bonus
Investment logic The leading domestic exporter of small home appliances companies has technological and efficiency advantages. The new platform companies have potential demand for manufacturing-oriented 南宁桑拿ODM companies. Xinbao can stand out from this internal foundry demand: Xinbao ‘s export sales account forThe proportion of domestic sales is 85%, which is composed of own brands (mainly Dongling, Mofei and Barsetto) and domestic ODM revenue. At present, domestic ODM accounts for about 30% -40%, and it cooperates with Xiaomi and Mingchuang.Internet brands have shifted their market share harvesting capabilities for low-end domestic brands of small household appliances. Through cost-effective product strategies to reduce the dimensionality, Xinbao can become a high-quality supplier of manufacturing design under the new model.
Own brand promotion is mainly online, conforming to the KOL marketing model, and reaping new Internet dividends: In the past, the company tried to promote the Dongling brand promotion model offline, but it failed in the end. Now the company has found one that fits the trend of the times and the largestThe road to brand marketing with benefits.
In 2015, the in-depth cooperation of the Mofei brand was promoted in small red books, Weibo and other models to create online celebrity products such as juicers and multi-functional pots. About 20 million yuan per year was used to promote precision marketing to achieve the maximum marketing effect.Such practices may continue in the development and promotion of private labels in the future.
Create a model with multiple brands and multiple categories to achieve high growth in domestic sales, and win the market with high-value, high-performance and other net red features.
Whether Xinbao can achieve Shenzhou International in the field of small home appliances, the future may exist.
Shenzhou International has developed from a general foundry company to a high-quality supplier of well-known brands. At present, Xinbao is at this stage. Since 15 years, it has made its technical capabilities and scale effects become the core suppliers of first-tier brands. By improving production efficiency andThe new capacity will further expand market share.
However, what is different is that Shenzhou International has higher fabric research and development capabilities than its peers, and it is difficult to appear in the field of small appliances in the process of assembling high value-added advantages.
From this comparison, we can see the speed and shortcomings of the future or market foundry integration, but with the stable orders from large overseas famous brands and the domestic emerging brands’ requirements for quality and efficiency, we can expand the absolute leading size of their foundry field.
In the comparison between the estimation discussion and the Lake estimation, the high estimate of the premium was observed due to its high domestic brand building and high proportion. In the future, the increase in the company’s internal sales revenue ratio and the increase in internal brand power in the new generation of consumer groups can reap consistent estimates with similar companies.system.
It is estimated that the company’s domestic sales revenue will reach 20% in 2020, and the corresponding profit performance will be 7.
At 3.5 billion U.S. dollars, the market capitalization level is expected to reach 15 billion market capitalization at 20 times the estimated PE, which is likely to double the current market value performance.合肥夜网
Earnings forecast and investment recommendations The company’s net profit for 18-20 years is 5 respectively.
35 ppm, the growth rate is 24% / 23% / 18%, corresponding to PE is 19/15 / 13X, for the first time recommend a buy rating.
Risks suggest that the promotion of independent brands is less than expected; overseas orders and exchanges are large; cooperation with domestic platform companies is slow; in January 2019, the major shareholders lifted the ban, with 43% of equity.