Core Viewpoint - Hanhigh Group (001221.SZ) was listed on the Shenzhen Main Board on July 30, primarily engaged in the R&D, design, production, and sales of home hardware and outdoor furniture products [1]. Company Overview - Hanhigh Group is one of the earliest and fastest-growing companies in the domestic home hardware and outdoor furniture industry, recognized as one of the "Top 10 in China's Home Manufacturing Hardware Industry" [4]. - The company has a market capitalization of 6.172 billion yuan, with an issuance price of 15.43 yuan per share and an institutional offering price of 17.32 yuan per share [4]. Financial Performance - The company's main business revenue consists of storage hardware, basic hardware, kitchen and bathroom hardware, outdoor furniture, and other products, with storage and basic hardware accounting for over 65% of its revenue [6]. - The domestic furniture hardware market size is projected to grow from 209.36 billion yuan in 2022 to 248.72 billion yuan in 2024, with Hanhigh's market share increasing from 0.57% to 0.94% during the same period [6]. Investment and Growth Strategy - Hanhigh Group plans to invest 3.7 billion yuan in the Hanhigh Smart Home Hardware Automation Manufacturing Base, 300 million yuan in the R&D Center Construction Project, and 200 million yuan in the Information Technology Construction Project [4]. - The company has enhanced brand promotion through various channels, including participation in furniture and building material expos, outdoor advertising, celebrity endorsements, and live streaming sales [6]. Sales and Distribution - The primary sales channel for Hanhigh Group is domestic offline distribution, employing a "payment before delivery" policy for dealers [7]. - The number of dealers exiting the network is projected to increase by 6.12% in 2023 and 36.54% in 2024, as the company focuses on refining its distribution channels and improving dealer quality [7].

Investment Rating - The report assigns a rating of "Underperform" to the company based on its AHP score of 1.19, which places it in the 15.7% percentile of the non-innovative system AHP model [4][8]. Core Insights - The company, Hanhigh Group, is a leading player in the home hardware and outdoor furniture industry in China, focusing on its own brand and distribution channels [4][10]. - The company has shown a steady increase in market share in the domestic furniture hardware market, with shares rising from 0.57% in 2022 to 0.94% in 2024 [4][12]. - Hanhigh Group's revenue and net profit have grown significantly from 2022 to 2024, with a compound annual growth rate (CAGR) of 32.78% for revenue and 60.74% for net profit, outperforming comparable companies [4][19]. Summary by Sections AHP Score and Expected Allocation - Hanhigh Group's AHP score, adjusted for liquidity premium factors, is 1.19, indicating a lower performance level in the market [4][8]. - The expected allocation ratios for offline investors are 0.0180% for Class A and 0.0123% for Class B under a neutral scenario [4][9]. Company Highlights and Features - The company has a strong brand presence and is recognized as one of the top ten in the Chinese home manufacturing hardware industry [4][10]. - Hanhigh Group's product lines include storage hardware, kitchen and bathroom hardware, and outdoor furniture, with over 65% of sales coming from storage and basic hardware products [4][10]. - The company has established a robust distribution network, with a significant focus on offline dealers and e-commerce channels, covering over 90 countries [4][14]. Financial Comparison with Peers - Hanhigh Group's revenue for 2022, 2023, and 2024 was 1.62 billion, 2.22 billion, and 2.86 billion CNY, respectively, while net profits were 206 million, 333 million, and 531 million CNY [4][19]. - The company's gross margin for 2022-2024 was 31.67%, 34.43%, and 35.84%, consistently higher than the average of comparable companies [4][22]. - The net profit margin for the same period was 12.69%, 14.97%, and 18.60%, also exceeding the average of comparable firms [4][23]. Fundraising Projects and Development Vision - The company plans to raise funds for the establishment of an automated manufacturing base, a research and development center, and an information technology project [4][32]. - The automated manufacturing base aims to enhance production capacity and efficiency, while the R&D center will focus on improving design capabilities [4][32][33].