Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 55.0 yuan [2][10]. Core Views - The company achieved a revenue of 11.48 billion yuan in H1 2025, representing a year-on-year increase of 4.7%. The net profit attributable to shareholders was 0.94 billion yuan, showing a slight decrease of 0.1% year-on-year [2][10]. - The revenue for Q2 2025 was 5.69 billion yuan, with a year-on-year growth of 1.9%, while the net profit for the same period was 0.44 billion yuan, down 5.9% year-on-year [2][10]. - The company's gross margin in H1 2025 was 23.6%, a decrease of 0.8 percentage points year-on-year, primarily due to fluctuations in overseas tariffs [10]. - The net profit margin for H1 2025 was 8.2%, down 0.4 percentage points year-on-year, influenced by the decline in gross margin [10]. Financial Summary - The company is projected to have total revenue of 22.43 billion yuan in 2024, with a growth rate of 5.3%. The estimated revenue for 2025 is 23.40 billion yuan, reflecting a growth rate of 4.3% [5]. - The net profit attributable to shareholders is expected to be 2.24 billion yuan in 2024, with a growth rate of 3.0%, and 2.26 billion yuan in 2025, with a growth rate of 0.5% [5]. - The earnings per share (EPS) for 2025 is estimated at 2.82 yuan, with a price-to-earnings (P/E) ratio of 18 times [5][10]. - The company’s total assets are projected to reach 13.55 billion yuan by 2025, with a debt-to-equity ratio of 5.0% [11].

Group 1 - The controlling shareholder, Aishida Group, plans to reduce its stake in Aishida Co., Ltd. by up to 10,219,157 shares, representing no more than 3% of the company's total share capital due to funding needs [1] - The potential cash-out from the share reduction is approximately 174 million yuan, based on the closing price of 16.99 yuan per share on September 15 [2] - Aishida, founded in 1978 and known as the "King of Cookware" in Zhejiang, primarily focuses on industrial investment, including cookware and kitchen small appliances [2] Group 2 - Aishida Co., Ltd. was listed on the Shenzhen Stock Exchange in 2010, with a production base covering an area of 800,000 square meters [2] - The company has recently completed the payment of approximately 5.1005 million yuan in tax and late fees, which does not involve any administrative penalties [2]

Core Viewpoint - The company has indicated that its North American business constitutes a small portion of its overall foreign trade revenue, primarily involving cookware products [1] Group 1 - The company is able to achieve flexible capacity allocation through its production base in Vietnam [1] - The scale of the company's small home appliance business in the North American market is currently limited [1] - The company aims to expand its small home appliance production line in Vietnam to mitigate the impact of tariffs [1]

Core Viewpoint - Guosheng Securities report indicates that Supor's net profit attributable to shareholders for H1 2025 is 940 million yuan, a year-on-year decrease of 0.1%, with Q2 2025 net profit at 440 million yuan, down 5.9% year-on-year [1] Financial Performance - Revenue shows steady growth, but profit growth has slowed down, with core categories maintaining stable growth [1] - For H1 2025, domestic and overseas sales revenue reached 7.76 billion yuan and 3.72 billion yuan, respectively, representing year-on-year increases of 3.4% and 7.6% [1] - Gross profit margins for domestic and overseas sales increased by 0.6 percentage points and decreased by 1.5 percentage points to 27.7% and 15.0%, respectively [1] Product Performance - In H1 2025, revenue from cookware, cooking appliances, food processing appliances, and other appliances were 3.2 billion yuan, 4.7 billion yuan, 1.9 billion yuan, and 1.7 billion yuan, respectively, with year-on-year growth rates of 7.5%, 1.2%, 2.4%, and 13.0% [1] Future Outlook - The company is expected to achieve net profits attributable to shareholders of 2.29 billion yuan, 2.44 billion yuan, and 2.60 billion yuan for 2025-2027, reflecting year-on-year growth rates of 2.0%, 6.7%, and 6.3% [1] - The rating is maintained at "Buy" [1]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 11.48 billion yuan in H1 2025, representing a year-on-year increase of 4.7%, while the net profit attributable to shareholders was 0.94 billion yuan, a slight decrease of 0.1% year-on-year [1] - The core product categories showed steady growth, with domestic and international sales reaching 7.76 billion yuan and 3.72 billion yuan respectively in H1 2025, reflecting increases of 3.4% and 7.6% year-on-year [1] - The report forecasts net profits for 2025-2027 to be 2.29 billion yuan, 2.44 billion yuan, and 2.60 billion yuan respectively, with growth rates of 2.0%, 6.7%, and 6.3% [2] Financial Performance Summary - H1 2025 gross margin was 23.6%, down 0.8 percentage points year-on-year, while Q2 2025 gross margin was 23.3%, down 1.1 percentage points year-on-year [2] - The company’s operating expenses for H1 2025 included a sales expense ratio of 10.0%, a management expense ratio of 1.7%, a research and development expense ratio of 1.8%, and a financial expense ratio of -0.1% [2] - The projected revenue for 2025 is 23.6 billion yuan, with a year-on-year growth rate of 5.2% [4]

Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 11.478 billion yuan, a year-on-year increase of 4.68% [4] - The net profit attributable to shareholders was 940 million yuan, a slight decrease of 0.07% year-on-year [4] Group 2: Domestic and International Sales - Domestic sales revenue showed stable growth due to increased resource investment in core categories and the positive impact of the "trade-in" policy [4] - International sales revenue also experienced good growth, with major foreign clients' orders increasing compared to the same period last year [4] Group 3: Product Strategy - The company plans to focus resources on traditional advantageous categories while iterating products based on differentiated usage scenarios and target demographics [4] - New product categories such as desktop water purifiers and ice makers are being actively developed to enhance brand recognition and consumer acceptance [4] Group 4: Competitive Strategy - The company adheres to a long-term strategy of product innovation, aiming to provide high-quality, high-value-added products [4] - Efforts are being made to optimize product and price combinations, strengthen resource investment in core businesses, and implement strict cost control to maintain stable gross margins [5] Group 5: Dividend Policy - The company has maintained a high dividend payout ratio since 2021, with future dividend plans subject to adjustments based on capital expenditures and cash flow [5]

Summary of Supor's Conference Call Company Overview - **Company**: Supor - **Industry**: Home Appliances Key Points Industry and Market Dynamics - The "old-for-new" policy positively impacted Supor's domestic sales, but its marginal effect is decreasing. Long-term growth relies on macroeconomic improvement and consumer willingness to spend [2][8] - Supor's export business faced challenges due to U.S. tariffs, with some orders shifting to Vietnam. The company is collaborating with Cyber and other clients to mitigate the negative impact of tariffs [2][7] - The company maintains the highest market share in core categories both online and offline, continuously launching new products to meet consumer demands [2][4] Financial Performance - In the first half of 2025, Supor achieved revenue of 11.478 billion yuan, a year-on-year increase of 4.68%. The net profit attributable to shareholders was 940 million yuan, a slight decline of 0.07% [3][24] - Domestic sales benefited from government subsidies, but the overall demand remains weak. The company plans to focus on product innovation and channel transformation to sustain growth [3][6] Product Innovation and Strategy - Supor is committed to product innovation, launching new products in emerging categories like floor washing machines, coffee machines, and water purifiers [2][12] - The company aims to balance high-end and low-end products to maintain stable profit margins despite price competition [2][9] Export and Tariff Impact - U.S. exports account for less than 20% of Supor's overall exports, with cookware primarily shipped from Vietnam. The company is expanding capacity in Vietnam but remains cautious about capital expenditure [4][10][16] - The gross margin for exports has been around 18%, but it has decreased due to tariffs and sales fluctuations [15] Future Outlook - For the full year, Supor expects sales growth but faces pressure on profit margins. Domestic growth will depend on product innovation and channel changes, while export growth relies on Cyber's organic growth in global markets [6][24] - The company is cautious about relying on short-term stimulus policies and emphasizes the need for long-term strategic execution [8][21] Competition and Pricing Strategy - Supor is focused on maintaining high-margin products and avoiding a price war, especially in the 500-1,000 yuan price range, which aligns with its long-term strategy [18][9] - The company is adapting to competitive pressures by enhancing product quality rather than engaging in price competition [9][18] Management and Governance - The CFO is currently serving as the acting CEO, and the company has established a modern corporate governance structure [19][20] Dividend Policy - Supor plans to maintain a dividend payout ratio between 50% and 80%, despite uncertainties regarding future capital expenditures [23] New Retail Channels - Supor is exploring new retail models, including instant retail, to adapt to changing consumer habits and enhance sales through various online platforms [22] Conclusion - Supor is navigating a challenging market environment with a focus on innovation, strategic partnerships, and maintaining profitability while adapting to external pressures such as tariffs and competition. The company remains committed to long-term growth strategies despite short-term challenges.

Core Viewpoint - Supor has experienced a decline in stock price for six consecutive trading days, with a cumulative drop of -4.79% [1] Group 1: Company Overview - Zhejiang Supor Co., Ltd. is a leading brand in cookware and small appliances, listed on the Shenzhen Stock Exchange in 2004 (stock code 002032), and is the first listed company in China's cookware industry [1] Group 2: Shareholder Activity - Three funds under Zhongtai Securities (Shanghai) Asset Management have entered Supor's top ten shareholders. Zhongtai Xingyuan Flexible Allocation Mixed A reduced its holdings in Q1 2023, while Zhongtai Yuheng Value Preferred Mixed A increased its holdings, and Zhongtai Xingwei Value Selected Mixed A entered as a new shareholder in Q1 2023 [1] - Zhongtai Xingyuan Flexible Allocation Mixed A has a year-to-date return of 0.72%, ranking 1235 out of 2262 in its category. Zhongtai Yuheng Value Preferred Mixed A has a year-to-date return of -0.01%, ranking 1475 out of 2262, while Zhongtai Xingwei Value Selected Mixed A has a year-to-date return of 5.06%, ranking 1796 out of 4369 [1] Group 3: Fund Management - The fund manager for Zhongtai Xingyuan Flexible Allocation Mixed A, Zhongtai Yuheng Value Preferred Mixed A, and Zhongtai Xingwei Value Selected Mixed A is Jiang Cheng, who has a background in finance from Tsinghua University and Shanghai University of Finance and Economics [6] - Jiang Cheng has held various positions in asset management and has been managing multiple funds since 2018, including Zhongtai Xingyuan Value Preferred Flexible Allocation Mixed Fund and Zhongtai Yuheng Value Preferred Flexible Allocation Mixed Fund [6][8]

Core Viewpoint - The domestic small home appliance market is experiencing intense competition and slowing growth, prompting many listed companies to focus on overseas markets for expansion [1][2]. Company Summary - Aishida Co., Ltd. plans to invest up to 150 million RMB (approximately 20.84 million USD) to establish a subsidiary in Vietnam for cooking utensils, small appliances, and industrial robots [1][2]. - The project aims to build a production and service system to shorten supply chain response times and better meet overseas customer demands, enhancing Aishida's market share and international brand recognition [2]. - Aishida's overseas sales revenue reached 1.34 billion RMB in 2024, a year-on-year increase of 39.79%, with the proportion of total revenue rising from 39.01% in 2023 to 45.80% in 2024 [2]. - The investment in Vietnam is a key move in Aishida's internationalization strategy, focusing on global market reconfiguration and cost structure optimization [2]. Industry Summary - Other small appliance companies are also expanding internationally, with Supor achieving 7.502 billion RMB in overseas sales in 2024, a 21.07% increase [3]. - Bear Electric's overseas sales reached 668 million RMB in 2024, growing by 80.81%, with a focus on Southeast Asia, Japan, South Korea, Europe, and North America [3]. - Beiding Crystal Technology's overseas revenue was 231 million RMB in 2024, up 36.15%, utilizing online and offline channels to cater to local market needs [3]. - Data from the China Electromechanical Products Import and Export Chamber indicates that kitchen and personal care appliance exports grew by 9.1% and 16.9% respectively in 2024 [4]. - The overall retail sales of kitchen small appliances declined by 0.8% in 2024, while the personal care appliance market showed mixed results, with only hair dryers experiencing growth [4]. - The future growth of Chinese small appliance companies is expected to rely on overseas market expansion, while domestic market success will depend on brand strength, user engagement, and product innovation [4].

Core Viewpoint - The signing of the "China-US Geneva Economic and Trade Talks Joint Statement" has not alleviated foreign trade manufacturers' concerns about their products' circulation in overseas markets. Companies like Aishida are increasingly investing overseas to mitigate potential adverse impacts from changing international trade dynamics [1][2]. Group 1: Company Strategy - Aishida plans to establish a subsidiary in Vietnam to invest in cookware, small appliances, and industrial robots, with a budget not exceeding 150 million yuan [2]. - The overseas investment aligns with Aishida's long-term strategic plan to enhance its global presence and respond flexibly to global macroeconomic fluctuations and changes in international trade patterns [2][4]. - Aishida's foreign sales revenue is projected to reach 45.8% by 2024, indicating a significant reliance on international markets [4]. Group 2: Market Conditions - The domestic market is experiencing insufficient growth momentum, prompting companies to seek expansion in overseas markets [5][6]. - The cookware market is facing challenges, with offline retail sales declining by 17.3% year-on-year in Q1 2025, while online sales increased by 10% [5]. - Aishida's internal sales revenue is expected to grow by only 5.8% in 2024, while foreign sales are projected to increase by 39.79% [6]. Group 3: Competitive Landscape - Aishida competes in the international market by producing for well-known brands and also selling its own brand products, although the profit margins for overseas sales are lower compared to domestic sales [7]. - The gross profit margin for domestic sales is 34.85%, while for foreign sales, it is only 24.01% in 2024 [7]. - The company has faced challenges in maintaining profitability, with a decline in revenue and net profit in the first quarter of the current year [7].