Supor (002032): Category expansion continues to reflect growth

0 Comments

Supor (002032): Category expansion continues to reflect growth
Forecasting 3Q19 profit growth of 15% in the year We expect 3Q19 Supor revenue to increase by 12%, and net profit attributable to mothers will increase by 15%.Although we have monitored the growth rate of Supor ‘s kitchen appliances retail, Supor ‘s air purifiers and wireless vacuum cleaners have grown rapidly.The growth logic of Supor’s category expansion still holds. Attention points Category expansion continues to reflect growth: 1) The company’s vacuum cleaners and air purifiers show good growth, and the offline market share has increased significantly.2) Historically, the company has maintained a good growth rate by continuously expanding its categories, and has successfully expanded from the cookware market to kitchen-related products such as kitchen supplies, thermos cups, small kitchen appliances, and kitchen appliances.3) The company’s expansion to products outside the kitchen, due to channel synergy and weak brand synergy, has not contributed a significant increase in the past.4) The company’s price positioning, flexible channel selection, and good at avoiding strong intervention.For example, the company’s kitchen appliances focus on the development of the online market and are divided into rapid improvements. Vacuum cleaners, air purifiers and other products compete more fiercely on the line, and the company mainly develops through the line. Vacuum cleaners: 1) On January 9, 2019, the retail sales of Supor vacuum cleaners increased by + 86%, and the market share increased by 2.9ppt to 8%, offline sharing is second only to Dyson, Cobos and Lake, becoming 武汉夜网论坛 second-tier brands.2) 1?In September, the average offline retail price of Supor vacuum cleaners was 1,374 yuan / set, which is a cost-effective positioning, which is lower than the industry average price (1918 yuan).3) The flagship T-series wireless vacuum cleaners are mainly lightweight. The T1 and T3 models are currently available with a weight of 1.45 kg / 1.56kg, compared with Dyson V11 1.The 89kg body weight is more friendly to female users. Air purifiers: 1) On January 9, 2019, against the background of the overall air purifier industry, the retail sales of Supor’s air purifiers increased by 65%, and the market expanded and increased 5.1ppt.2) Supor products in the air purifier market are positioned at the mid-range and mainly promote the removal of formaldehyde.The average offline retail price in September (3804 yuan / unit)苏州夜网论坛 was slightly higher than the industry average price (3341 yuan / unit). Estimates and recommendations maintain 2019/20 EPS forecast2.35/2.77 yuan.We maintain our Outperform rating and consider changing valuations for another year. We raise our target price by 18% to 91.43 yuan, corresponding to 39x / 33x 2019 / 20eP / E, a 25% increase in room.The company currently expects the corresponding value of 31x / 27x 2019 / 20e P / E. Risk market fluctuations cause lower-than-expected revenue