\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 79 Ningbo Daye Garden Machinery Co.Ltd(300879) )
Ningbo Daye Garden Machinery Co.Ltd(300879) : expert in garden machinery and ope industry with rapid growth
Ningbo Daye Garden Machinery Co.Ltd(300879) founded in 2006, the company is a leading enterprise in China’s garden machinery industry and a leading enterprise in lawn mowers. The business structure can be mainly divided into lawn mower and all other power equipment and machinery. In recent years, the proportion of lawn mower business is about 80%. By the end of 21, the proportion of the two in the main business income is about 80.02% / 19.98% respectively. The average gross profit margin / net profit margin of 17-22q1 is 19.78% / 7.03%.
The three wheel drive of “product + channel + capacity” continues to open up growth space
On the product side, the company mainly focuses on gasoline products, accounting for about 70.9% by 2021, and the proportion of lithium battery products has continued to increase in recent years, rising to 13.7% by 2021. Compared with peer products, the company’s products often have comparative advantages in innovative design, product cost performance and so on. On the channel side, it deeply binds high-quality core customers and drives the rapid growth of performance. New customers Wal Mart and home depot in 2018 and 2021 have gradually become the new growth poles of the company’s performance. On the capacity side, the new capacity invested by raising funds is expected to accelerate the release and drive the company’s performance to achieve rapid growth.
The track has a long slope and thick snow, and the industry shows the trend of lithium electrification / intelligence
Garden machinery is mainly lawn mower, supplemented by other garden maintenance equipment. The market scale of garden machinery related segments, electric tool market and outdoor power tool market (OPE) has grown steadily, and Europe and the United States are the main long-term markets. In terms of competition pattern, the market share is relatively concentrated, and Chinese enterprises are rising rapidly. In terms of industry trend, driven by policies and technology, the demand side is increasingly strong, the penetration rate of lawn mower products is expected to continue to increase, and lithium electrification / intellectualization has become a new growth point of the industry.
Discuss Ningbo Daye Garden Machinery Co.Ltd(300879) future development potential from the perspective of channel / product / strategy
We believe that from the perspective of channel, the in-depth cooperation with home depot will bring stable and sustainable performance contribution to the company. From the perspective of product and strategy, with the continuous improvement of the company’s innovation ability and the superposition of the development of its own brand, the company is expected to expand categories across borders and replicate the success path of TTI.
Profit forecast and investment suggestions
It is estimated that the revenue of Ningbo Daye Garden Machinery Co.Ltd(300879) 20222024 will be 2.161 billion yuan / 2.808 billion yuan / 3.65 billion yuan respectively, with a year-on-year increase of 35% / 30% / 30%, and the net profit attributable to the parent company will be 162 million yuan / 225 million yuan / 350 million yuan respectively, with a year-on-year increase of 192% / 39% / 56%. The corresponding EPS of the latest total share capital and closing market value are 1.01/1.40/2.19 yuan and pe17 / 12 / 8x respectively. The “buy” rating is given for the first coverage.
Risk tips
Product innovation is less than expected; The product procurement cost exceeds the expectation; Industry competition intensifies; Channel expansion is less than expected; Sea freight and exchange rate fluctuated more than expected
