CANNY(002367)2022-12-06 05:28Business Performance and Market Position - The company's order volume growth rate exceeds the order amount growth rate, indicating increased operational pressure due to rising costs [2] - The company's main task is to steadily increase market share [2] - The elevator industry's growth rate is theoretically higher than the real estate industry's growth rate due to increasing elevator-to-building ratios and public construction projects [4] - The top 30 companies in the elevator industry are expected to continuously increase their market share, with foreign brands acquiring smaller domestic manufacturers [4] Sales and Distribution Strategy - The company's sales are primarily focused on 3-4 tier cities, while foreign brands dominate 1-2 tier cities [3] - The company plans to leverage its established brand and channels to follow strategic clients into 1-2 tier cities [3] - Direct sales are significant, but agents still play a crucial role, especially for strategic clients [3] - The increase in large real estate projects has led to more direct sales contracts, reducing agents' ability to buy out sales and increasing the company's receivables [3] Financial and Operational Metrics - The company's Q1 gross margin remains strong due to the fulfillment of previous orders [2] - Prepayments have increased significantly, particularly due to higher production and shipment payments in March [2] - Installation and maintenance revenue accounts for approximately 10% of the company's total revenue, with higher self-maintenance rates for rail transit products [4] Industry Dynamics and Competition - The elevator industry has limited bargaining power, with downstream players being dominant and prices being transparent due to intense competition [4] - Foreign brands have a significant advantage in the maintenance sector, which is a major profit contributor [4] - The industry is undergoing consolidation, with large real estate developers' market share growth driving their partnered elevator manufacturers' market share [4] Strategic Initiatives and Future Plans - The company is exploring new growth areas, such as robotics and IoT, to diversify its business and mitigate risks associated with a single business line [5] - The company is actively seeking suitable projects and operational teams to establish a second major business segment [5]