Furja(SH:603219) Yong Xing Zheng Quan·2024-11-08 05:57Investment Rating - The report gives an "Accumulate" rating for the company, indicating a positive outlook based on expected growth in its core business and new energy storage initiatives [5]. Core Viewpoints - The company is a well-known ODM manufacturer of cleaning appliances, primarily focusing on vacuum cleaners and related components, with a significant presence in both international and domestic markets [2][12]. - The company has experienced rapid growth in recent years, with a CAGR of 18.49% in revenue and 14.69% in net profit from 2018 to 2023, although there was a decline in 2023 [15][28]. - The outlook for the cleaning appliance sector remains optimistic, driven by the potential for increased sales in the Asia-Pacific region and the expansion of its major client, SharkNinja, into new markets [3][22][28]. - The company is strategically entering the energy storage market, which is expected to provide new growth opportunities, particularly in the commercial sector [4][34]. Summary by Sections 1. Company Overview - The company was established in August 2002 and specializes in the R&D, design, production, and sales of smart cleaning appliances and brushless motors [2][12]. - It has become a leading ODM supplier in the cleaning appliance sector and ranks among the top ten vacuum cleaner exporters in China [2][12]. 2. Cleaning Appliance Market Outlook - The global vacuum cleaner market has shown steady growth, with a compound annual growth rate (CAGR) of 3.1% from 2009 to 2023 [22]. - The company’s sales to SharkNinja have increased significantly, with sales rising from 980 million yuan in 2019 to 2.256 billion yuan in 2022, although there was a slight decline in 2023 [3][28]. - The company is also expanding its product line to include new cleaning devices such as floor cleaning machines and fabric cleaning machines, which are expected to contribute to future revenue [3][32]. 3. Energy Storage Business Development - The company has made strategic investments in the energy storage sector, acquiring a 51% stake in Ningbo Yongneng New Energy Technology Co., Ltd. and establishing a partnership for investment in energy-related projects [4][34]. - The energy storage market in China is rapidly growing, with a projected compound annual growth rate of 73% from 2024 to 2025 [4][34]. - In 2023, the company’s energy storage business accounted for 10.8% of its total revenue, indicating a significant contribution to overall performance [33]. 4. Financial Projections and Investment Recommendations - Revenue projections for 2024-2026 are estimated at 2.921 billion yuan, 3.156 billion yuan, and 3.387 billion yuan, respectively, with corresponding net profits of 264 million yuan, 294 million yuan, and 319 million yuan [5][6]. - The expected earnings per share (EPS) for 2024-2026 are projected to be 0.47 yuan, 0.52 yuan, and 0.57 yuan, with price-to-earnings (PE) ratios of 28, 25, and 23 times, respectively [5][6].