IMPULSE(002899) 信达证券·2025-01-16 07:39Investment Rating - The report assigns a "Buy" rating to Yingpaisi (002899) [2] Core Views - Yingpaisi is a leading fitness equipment manufacturer with a dual growth engine of OEM and self-branded products [3] - The company is expected to benefit from post-pandemic demand recovery and capacity expansion [3] - Global fitness equipment market is steadily growing, with China's penetration rate expected to increase [4] - Yingpaisi's overseas OEM and self-branded businesses are both growing rapidly, with H1 2024 YoY growth of 43% and 62% respectively [5] - The company is expanding into the smart glasses sector through a partnership with Liweike Technology [5] Company Overview - Yingpaisi specializes in the development, manufacturing, and sales of fitness equipment, serving as an OEM for international brands like PRECOR and BH [3] - The company's self-branded "Impulse" has successfully entered multiple international markets including Europe and Asia-Pacific [3] - Revenue and net profit grew by 36.1% and 20.2% YoY respectively in Q1-Q3 2024 [3] - The company's main products include commercial, outdoor, and home fitness equipment, with commercial products accounting for 87% of 2023 revenue [11] Industry Analysis - Global fitness equipment market size grew from 11.7 billion in 2019, with a CAGR of 3.7% [4] - Post-pandemic, global fitness awareness has increased, with the market expected to grow at a CAGR of 5% from 2021 to 2028 [4] - China's fitness penetration rate was only 3% in 2021, significantly lower than developed countries like the US (24%) and Europe (10%) [36] - Chinese manufacturers dominate the global supply chain, accounting for 68% and 75% of US and EU imports respectively in 2023 [4] Growth Drivers - OEM business is transitioning from OEM to ODM, with H1 2024 overseas OEM revenue growing 43% YoY [5] - Self-branded business is expanding through product iteration and regional expansion, with H1 2024 revenue growing 62% YoY [5] - The company is building a new sports industrial park, which is expected to double production capacity to 462,000 units [5] - Yingpaisi is entering the smart glasses sector through a partnership with Liweike Technology, creating a second growth curve [5] Financial Projections - Revenue is expected to grow from 1.228 billion yuan in 2024 to 1.501 billion yuan in 2026, with a CAGR of 10.6% [6] - Net profit is projected to increase from 122 million yuan in 2024 to 178 million yuan in 2026 [6] - The company's PE ratio is expected to decline from 27.5X in 2024 to 18.8X in 2026 [6] Competitive Advantages - Strong R&D capabilities with 311 domestic patents and 2 international patents as of H1 2024 [46] - Deep relationships with international clients, with OEM business transitioning from OEM to ODM [50] - Comprehensive product portfolio covering all fitness scenarios, including some products supplied to national sports venues [46] Valuation - The report compares Yingpaisi with peers such as Shuhua Sports, Jiangxin Home Furnishing, and Gongchuang Turf [69] - Yingpaisi's 2024 PE of 27.5X is higher than the industry average of 22.0X, reflecting its growth potential [69]