Core Insights - The production of badminton shuttlecocks involves over 30 processes, highlighting the complexity and technical requirements of manufacturing [1] - The company has significantly increased its production capacity and export volume, with over 90% of its 400,000 shuttlecocks produced last year being exported [2] - The company is focusing on technological upgrades and automation to enhance production efficiency and product quality, achieving a product qualification rate of 96% [2] Company Overview - Jiangsu Hanyan Sports Goods Co., Ltd. has been operational since 2004, utilizing advanced domestic and international technologies to maintain a leading position in precision, stability, and reliability within the industry [1] - The company's flagship product, the "Aviation" brand shuttlecock, has evolved from its first to sixth generation and is exported to various countries including the USA, Japan, Australia, UAE, Canada, and the Philippines [1] Production and Quality Control - The production process includes meticulous weight grading to 0.1 grams and durability sampling tests, ensuring high standards before packaging [2] - The company has expanded its product range to over ten different models, with a focus on improving durability and precision through intelligent manufacturing processes [2] Market Trends and Challenges - The rising cost of raw materials, particularly the feathers used in shuttlecocks, poses a challenge, as feathers account for 80-90% of the production cost [2] - The emergence of synthetic materials is seen as a potential solution for making badminton more economical and sustainable, aligning with environmental protection goals [2]

Core Viewpoint - Fangda New Materials has transformed from an unknown small enterprise into a leading company in the adhesive materials industry, leveraging capital and technological innovation to enhance its market position [1][2]. Company Development - Founded in 2003, Fangda New Materials has progressed through various stages, including listing on the New Third Board in 2016, moving to the Select Tier in 2020, and finally listing on the Beijing Stock Exchange in 2021 [1]. - The company started with logistics labels and has expanded into the adhesive materials sector, focusing on personalized packaging solutions for the rapidly growing express delivery market [2]. Market Trends - The express delivery industry in China is projected to handle 1,750.8 billion packages in 2024, reflecting a year-on-year growth of 21.5%, which directly increases the demand for adhesive labels [2]. - The company aims to capitalize on the booming express delivery sector, which is seen as a "golden track" for growth [2]. R&D and Production Capacity - Fangda New Materials emphasizes strong technological R&D capabilities and a comprehensive industrial chain layout, mastering key production processes and dozens of technical formulas [3]. - The company has initiated a project for producing variable information labels, utilizing advanced automation and smart production systems to enhance product quality and precision [3][4]. - The launch of three new production lines has alleviated previous capacity constraints, allowing for significant increases in adhesive material production [3]. Strategic Goals - The company is committed to digital transformation in manufacturing, focusing on smart production and environmental sustainability [4]. - Fangda New Materials has established partnerships with major logistics companies like JD, SF, and FedEx, which helps in continuous R&D and market feedback [5]. - Plans for 2024 include further increasing R&D investment and expanding market share through additional automated production lines [5]. Industry Outlook - The adhesive label industry is expected to see consolidation, with weaker companies being merged or transformed, leading to increased industry concentration [6]. - Fangda New Materials is positioned to leverage its product quality and smart manufacturing efficiencies to enhance its competitive edge in both domestic and international markets [6]. - The company has begun exploring overseas markets, establishing joint processing plants in the U.S. and Canada, and aims to expand its global footprint while maintaining a focus on international sales [6].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][17]. Core Views - The company achieved a revenue of 6.37 billion yuan in 2024, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 480 million yuan, up 8.4% year-on-year [1]. - The company is focusing on brand image enhancement and channel management improvement, aiming to discover growth potential through a multi-category and multi-brand matrix [4]. - The company plans to distribute a cash dividend of 3 yuan per 10 shares, totaling 250 million yuan, which accounts for 51% of the net profit attributable to shareholders for 2024 [1]. Financial Performance - In Q1 2025, the company reported a revenue of 1.26 billion yuan, a decrease of 8.8% year-on-year, and a net profit of 110 million yuan, down 14.33% year-on-year [1]. - The gross margin for 2024 was 40.7%, a slight decrease of 0.4 percentage points year-on-year, while the gross margin for Q1 2025 improved to 42.1% [3]. - The company expects net profits attributable to shareholders for 2025, 2026, and 2027 to be 510 million, 580 million, and 650 million yuan respectively [4]. Market and Product Insights - The company experienced stable growth in its core product categories, with the domestic smoke and stove categories showing increases of 7% and 5% respectively in 2024 [2]. - The new retail channel contributed significantly, with a revenue of 1.3 billion yuan in 2024, reflecting a year-on-year growth of 30% [2]. - The integrated stove market faced challenges, with a year-on-year decline in retail revenue of 30.6% [2]. Valuation Metrics - The projected P/E ratios for 2025, 2026, and 2027 are 10.7x, 9.5x, and 8.4x respectively [4]. - The company’s total market capitalization is approximately 5.48 billion yuan [7].

Investment Rating - The investment rating for the company is "Buy" [6][17] Core Views - The company achieved a revenue of 6.37 billion yuan in 2024, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 480 million yuan, up 8.4% year-on-year [1] - The company is focusing on brand image enhancement and channel management improvement, aiming to discover growth potential through a multi-category and multi-brand matrix [4] - The company plans to distribute cash dividends of 3 yuan per 10 shares, totaling 250 million yuan, which accounts for 51% of the net profit attributable to shareholders in 2024 [1] Financial Performance Summary - In Q1 2025, the company reported a revenue of 1.26 billion yuan, a year-on-year decrease of 8.8%, and a net profit of 110 million yuan, down 14.33% year-on-year [1] - The gross margin for 2024 was 40.7%, a decrease of 0.4 percentage points year-on-year, while the gross margin for Q1 2025 improved to 42.1%, an increase of 0.2 percentage points year-on-year [3] - The company expects net profits attributable to shareholders for 2025-2027 to be 510 million, 580 million, and 650 million yuan respectively, with corresponding P/E ratios of 10.7x, 9.5x, and 8.4x [4] Market and Product Insights - The domestic market for kitchen appliances, particularly range hoods and gas stoves, showed stable growth in 2024, with retail sales of range hoods increasing by 14.9% and gas stoves by 15.7% year-on-year [2] - The new retail channel contributed significantly to revenue, with a 30% year-on-year increase in new retail revenue, while online sales decreased by 6% [2] - The company is experiencing pressure in integrated products, with a 30.6% year-on-year decline in retail sales for integrated stoves [2]