Investment Rating - The report recommends an "active participation" investment rating for the company, indicating a positive outlook on its stock performance [2][23]. Core Insights - The company, Bawei Co., Ltd. (837023.BJ), specializes in integrated ODM services for cosmetics, providing comprehensive support to brand owners since its establishment in 2006 [2][7]. - The company has a strong focus on R&D, with over 13,000 cosmetic products registered, making it one of the leading manufacturers in terms of skincare product registrations in China [2][8]. - Bawei has successfully captured growth opportunities in the Southeast Asian market, particularly through its SKINTIFIC brand, which achieved significant sales on platforms like TikTok [2][8]. - The company has demonstrated robust revenue growth, with a CAGR of 20.95% from 2020 to 2022, and a stable profit margin, with a gross margin of 30.47% in 2022 [2][8]. Summary by Sections 1. Company Overview - Bawei Co., Ltd. is an integrated ODM service provider in the cosmetics industry, focusing on product planning, formula development, mass production, and efficacy testing [7]. - The company has received multiple accolades for its innovation and service quality, including recognition as a "specialized and innovative small enterprise" in Guangdong [7]. 2. Issuance Plan - The company plans to issue 8 million shares at a price of 5.77 CNY per share, with an expected market capitalization of 488 million CNY post-issuance [2][12]. - The issuance will have a low initial float ratio of 28.29%, which may attract investor interest due to the low entry barrier [2][12]. 3. Industry Situation - The domestic cosmetics ODM market is expected to grow significantly, driven by rising disposable incomes and the emergence of new domestic brands [15][16]. - The Southeast Asian market is projected to grow at a CAGR of 10.1% from 2021 to 2026, presenting substantial opportunities for the company [16]. 4. Competitive Advantages - The company possesses strong R&D capabilities, having developed over 6,000 proprietary cosmetic formulas and holding 129 patents [7][17]. - Bawei's subsidiary, Youzhi Testing, enhances its product testing capabilities, providing third-party testing services [17][18]. - The company has invested in smart manufacturing technologies to improve production efficiency and product quality [18]. 5. Comparable Companies - Bawei Co., Ltd. has a higher gross margin (30.47%) compared to its peers, indicating a strong competitive position in the market [21][22]. 6. Subscription Analysis - The report suggests that the initial public offering (IPO) presents a favorable investment opportunity due to its low pricing and limited float, making it attractive for investors [2][23].
北交所新股申购策略报告之一百一十四：芭薇股份：化妆品ODM一体化服务商