DAYE(SZ:300879)2022-11-19 03:04Group 1: Company Growth and Competitiveness - The company's order growth comes from both new and existing products and customers, with core competitive advantages including technology R&D, product quality, and talent [2] - The company has a diverse product line, primarily focusing on lawn mowers, which are categorized into push mowers, robotic mowers, and riding mowers [2] - The company plans to expand its product offerings beyond lawn mowers, with a focus on agricultural machinery, while maintaining a strong presence in the lawn mower market [2] Group 2: Production and Capacity - The new factory in Hangzhou Bay has a production capacity of 900,000 units, which began ramping up in the second half of 2021 and is expected to reach normal operational status by the end of 2022 [2] - The company has overseas manufacturing bases in Thailand and the USA, which have been minimally affected by the pandemic [3] Group 3: Financial Performance and Strategy - The company has implemented price increases to counteract rising costs, with expectations for profit margins to improve through strategies focused on specialization, internationalization, and brand development [3] - The depreciation of the RMB is beneficial for the company as it primarily exports products, and it employs foreign exchange derivatives to mitigate currency fluctuation risks [3] - Recent declines in gross and net profit margins are attributed to increased shipping costs, early investments in capacity, and rising depreciation expenses from new factories [3] Group 4: Market Position and Client Relations - The company maintains a strong bargaining position despite a concentrated client base, thanks to its extensive R&D capabilities and patented products, which reduce product homogeneity [3]