The outbreak of the outdoor products market has brought a number of listed companies to the forefront and amplified investors' anxiety about growth. At the performance presentation meeting held on May 23, Zhejiang Natural Outdoor Goods Inc(605080) ( Zhejiang Natural Outdoor Goods Inc(605080) . SH) management said that the release of production capacity of Vietnam projects and the expansion of product categories are the driving force of the company's growth. In order to maintain stable profits, the company has raised prices this year, but the pressure of rising prices of some raw materials still needs to be eliminated internally.
Stepping on the east wind of outdoor products industry, the growth rate of Zhejiang Natural Outdoor Goods Inc(605080) performance is bright. In 2021, the company achieved a revenue of 842 million yuan, a year-on-year increase of 44.91%; The net profit attributable to the parent company was 220 million yuan, with a year-on-year increase of 37.59%, and the profit was stable. In the first quarter of this year, the company's revenue and net profit attributable to the parent continued to grow, with a year-on-year increase of 38% - 47%.
High view also attracted brokerage agencies to "get together" rating. Zheshang light industry team believed that the company's performance in the first quarter of this year exceeded expectations, and analyzed that Zhejiang Natural Outdoor Goods Inc(605080) has high barriers in the field of TPU, which brings high bargaining power. The price increase driven by the price rise of raw materials is expected to be reflected in 2022.
The company level is relatively cautious about the wording of cost transfer. Dong Yimin, the Secretary of the board of directors, said at the meeting that the company's sales quotation in 2022 has been improved, which will offset the pressure of rising costs to a certain extent. However, to maintain stable profits, it is also necessary to digest the cost pressure internally by reducing costs and improving efficiency. It is reported that the company's main raw materials include TPU particles, TPU film, cloth, TDI and other petrochemical products.
Several research reports pointed out that Zhejiang Natural Outdoor Goods Inc(605080) mastered the key processes and technologies such as TPU film and fabric composite technology, polyurethane (PU) soft foam foaming technology, high frequency welding technology and hot pressing welding technology. Thanks to this advantage, the company has established long-term cooperative relations with decathlon and other world-famous outdoor brands, and has become the main supplier of inflatable mattresses for the latter.
However, the actual barriers of the above key processes and technologies may still need to be further observed. At the meeting, the financial Associated Press reporter said: "can the company export technology? How wide is the application range of technology?" But no reply was received. For the application mode of TPU materials, Dong Yimin only said that TPU is mainly for personal use and will not be sold for the time being.
At present, the global outdoor products industry is still growing. According to the data of China Research Industry Research Institute, the revenue scale of the global outdoor products industry is expected to reach US $236.34 billion in 20205, and the CAGR from 2021 to 2025 is about 6.86%.
However, in the huge market, Zhejiang Natural Outdoor Goods Inc(605080) the products are relatively small, and the market scale of its main product inflatable mattress is still lack of reliable statistical data. In order to further expand the categories, the management of the company said that inflatable mattresses, waterproof bags, thermal insulation bags and inflatable water sports categories in the field of household and leisure are the focus of development, and phased achievements have been made. In terms of capacity improvement, the company's Vietnam project has been put into operation at the end of 2021. At present, it is in the stage of capacity climbing. With the release of capacity, the delivery capacity of waterproof bags will be further improved.
