supor(002032) 国联证券·2024-10-22 12:30Investment Rating - The report assigns a "Buy" rating to Supor (002032) for the first time [5] Core Views - Supor is a model of steady operation in the domestic small home appliance market, with high-quality financial statements and a balance between growth and operational quality [3] - The company has consistently increased its dividend payout to ensure shareholder returns, enhancing its investment stability [3] - Supor's future growth is expected to be driven by its strong domestic sales capabilities, synergy with its parent company SEB, and long-term governance mechanisms [3] Financial Performance and Valuation - Revenue is projected to grow by 7%, 9%, and 9% in 2024, 2025, and 2026, respectively, with net profit growth of 8%, 11%, and 11% over the same period [7] - The 3-year compound growth rate for revenue and net profit is expected to be 8% and 10%, respectively [7] - The dividend yield is estimated to reach 5.5% assuming a 100% payout ratio [7] Domestic Sales - Supor has been a leader in the Chinese kitchen small appliance market for 30 years, with a strong brand and channel presence [7] - The company's domestic sales are supported by a broad market space for kitchen small appliances and its ability to expand product categories through synergy with SEB [7] - Supor's core products, such as rice cookers and electric pressure cookers, account for nearly 60% of its retail sales, ensuring a stable revenue base [7] Export Sales - Supor's export business has grown significantly due to its collaboration with SEB, contributing nearly 30% of its revenue [7] - The company's export business has a gross margin of around 18%, with strong net profit performance expected [7] - SEB's global leadership and Supor's manufacturing capabilities in Asia position the company for continued growth in export markets [7] Product and Channel Strategy - Supor has diversified its product portfolio, expanding from kitchen appliances to home living and personal care products [12] - The company has adjusted its channel strategy to improve e-commerce efficiency, including integrating logistics and increasing direct sales [43] - Supor has successfully leveraged new e-commerce platforms like Douyin (TikTok) to capture growth opportunities [43] Historical Performance - Supor's revenue grew from 5 billion yuan in 1994 to 21 billion yuan in 2006, establishing itself as a leader in the Chinese cookware market [14] - From 2007 to 2019, Supor's revenue grew from 21 billion yuan to 199 billion yuan, with a compound annual growth rate (CAGR) of 19% [14] - The company's domestic and export sales grew at CAGRs of 20% and 17%, respectively, during this period [14] Research and Development - Supor has invested heavily in R&D, with its R&D expenditure surpassing that of competitors like Joyoung and Bear [33] - The company has filed a significant number of patents, with 6,878 patent applications from 2021 to 2023, including 816 invention patents [33] Dividend and Shareholder Returns - Supor has consistently increased its dividend payout ratio, reaching 100% in 2023, with a cumulative cash dividend of 7.2 billion yuan from 2021 to 2023 [21] - The company's dividend yield has risen significantly since 2020, reflecting its commitment to shareholder returns [21]