Investment Rating - The report initiates coverage with a "Buy" rating for the company, projecting a 15% upside based on the current market valuation [35]. Core Insights - The company has shown significant revenue growth from 9.67 billion to 33.07 billion from 2018 to 2022, with a CAGR of 36.00%. The net profit also increased from 0.40 billion to 1.91 billion during the same period, achieving a CAGR of 47.35% [15][63]. - The company is focusing on high-cost performance cleaning appliances, with the cleaning category's revenue share increasing from 41% in 2018 to 68% in 2022 [19]. - The dual-brand strategy leverages the strengths of both the internet brand "Deerma" and the internationally recognized brand "Philips," enhancing operational efficiency and market reach [16][19]. Summary by Sections 1. Company Overview - Established in 2011, the company transitioned from e-commerce operations to building its own brand "Deerma" and acquiring Philips' water health business, leading to a multi-brand strategy [15][57]. - The company has expanded its product offerings and market presence, including the recent acquisition of Philips' health and fitness product lines [15][57]. 2. Market Potential - The domestic small appliance market is expected to experience significant growth, with comparisons to Japan indicating a potential high growth phase [10][19]. - The company is strategically focusing on high-cost performance cleaning appliances, which are gaining market share [19]. 3. Financial Performance - The company reported a revenue of 31.53 billion in 2023, a decrease of 4.64% year-on-year, while net profit was 1.09 billion, down 42.93% [63][64]. - The first quarter of 2024 showed signs of recovery with a revenue of 7.16 billion, reflecting a year-on-year growth of 7.69% [63]. 4. Profitability and Margins - The company's gross margin for 2023 was 30.76%, positioning it favorably within the industry, with individual categories like personal care and water health showing higher margins [65][66]. - The report highlights the company's ability to maintain a competitive edge in profitability compared to peers [65]. 5. Brand Strategy - The company operates under multiple brands, including "Deerma," "Philips," and "WellSkins," focusing on different product categories to capture diverse market segments [44][57]. - The Philips brand has significantly contributed to revenue growth, with sales increasing from 1.37 billion in 2018 to 16.18 billion in 2022 [36][44]. 6. Future Projections - Revenue projections for 2024-2026 are estimated at 35.28 billion, 39.51 billion, and 44.21 billion, with respective growth rates of 11.9%, 12.0%, and 11.9% [23][35]. - Expected net profits for the same period are projected at 1.61 billion, 2.10 billion, and 2.58 billion, with growth rates of 48.0%, 30.4%, and 23.0% [23][35].
德尔玛：小家电后起之秀，双品牌多品类齐发力