SOKAN(SH:688157) INDUSTRIAL SECURITIES·2024-02-28 16:00Investment Rating - The report maintains an "Add" investment rating for the company [9][20]. Core Viewpoints - Matsui Co., Ltd. is a new type of functional coating material company targeting high-end consumer electronics and passenger vehicles. In 2022, the revenue breakdown for high-end consumer electronics was 44% from mobile phones and related accessories, 17% from laptops and related accessories, 19% from wearable devices, and 5% from smart home appliances. The passenger vehicle segment accounted for 13% of revenue [9][20]. - The company has established a unique high-barrier business model through technology and service, focusing on customer differentiation and strong R&D capabilities. This model allows for timely responses to market demands and deepens trust with clients [13][20]. - The company has successfully entered the automotive coating market, with significant growth in revenue from this segment, achieving 670.25 million yuan in 2022, a year-on-year increase of 198.39% [20][34]. Summary by Sections 1. High-end Coating Supplier Focused on Consumer Electronics and Automotive - Matsui Co., Ltd. specializes in high-end functional coating materials, primarily used in 3C products and passenger vehicles. The company has a strong focus on innovation and has established a concentrated shareholding structure [19][27]. 2. Deep Customer Engagement Business Model - The company employs a technology and service-oriented business model that emphasizes continuous product updates and customer engagement. This model creates a competitive barrier by ensuring high-quality coatings that meet customer needs [49][50]. - Matsui has established 12 global technical and marketing service centers to enhance customer outreach and support [64]. 3. Technology as the Foundation - The company maintains a high R&D investment ratio, with R&D expenditures consistently above 11% of revenue, significantly higher than industry averages. The proportion of technical personnel is also around 30%, indicating a strong focus on innovation [66][67]. - Matsui has built extensive databases for raw materials, formulations, and processes, which support its R&D efforts and enhance efficiency [82][72]. 4. Active Participation in the Global Coating Market - The global coating industry is characterized by low concentration, with many players. Matsui is positioned to capture market share as domestic companies improve their product quality and compete internationally [74][75]. - The demand for coating materials is substantial, particularly in the consumer electronics and automotive sectors, which are expected to recover and grow [88][89].