\u3000\u3000 Keeson Technology Corporation Limited(603610) (603610)
Keeson Technology Corporation Limited(603610) is one of the largest intelligent electric bed suppliers in China. The company mainly supplies intelligent electric beds to overseas enterprises through OEM (ODM) mode. As the consumer market of smart electric bed is mainly concentrated in a few developed countries and regions such as Europe and the United States, the main sales channel of products is to cooperate with mattress manufacturers or large stores. In the North American market, SSB and TSI are two mattress giants, with a total market share of more than 70%, basically showing a duopoly competition pattern; This also determines that the company’s sales strategy is based on the key customer strategy, and the company’s customers are highly concentrated. By the first half of 2021, the company’s top five customers accounted for 80.39%, with a high proportion. The company’s key customer strategy also determines how to deeply bind and serve key customers, which is the most important topic of the company.
Focusing on the needs of key customers, the company continues to establish its core competitive advantages in R & D and design capacity, production process, supply chain rapid response capacity, etc. We believe that the company’s core advantage is still its product R & D and manufacturing capabilities. Even in the case of tariff increase, the company’s products still have a relatively strong cost advantage compared with competitors. Relying on these competitive advantages, the company has successively opened up major customers such as tepur, Shuda and Simmons, and established a relatively stable cooperative relationship. After the advent of the trade war, the company also relied on a solid long-term cooperative relationship to face the difficulties of tariff rise with customers, jointly bear the tariff, and effectively transfer part of the tariff to customers, reducing the difficulties faced by the company. In addition, the company has successively set up factories in Vietnam and Mexico to transfer its production capacity to areas not affected by the trade war. However, with the opening of overseas markets and the gradual expansion of new factories, the company’s operating revenue rose to RMB 2.178 billion in the first three quarters of 2021, a year-on-year increase of 38.57%, and the company’s performance returned to the track of rapid growth.
Looking forward to the future, we believe that the core contradiction of the company’s development at the current stage lies in the speed of increasing the market penetration of the core product intelligent electric bed. According to ibis’s estimation, in 2020, the market scale of intelligent electric bed in the United States will only be about US $1134 million, and the company’s market share in the whole segment market has reached nearly one-third. In fact, the market share has reached a relatively high level. Under the condition that the structure of key customers is relatively stable, we expect that the main development space in the future will still come from the improvement of the overall market penetration of intelligent electric bed. On the whole, with the deepening of aging in the United States (by 2030, the number of people over 65 will increase to 74 million) and the price decline caused by the continuous maturity of the process, we believe that the overall penetration rate is expected to reach 18% in 2023, and the smart electric bed Market will rise to nearly $1.6 billion. The company still has great development space in the future.
Looking ahead, we believe that the company’s performance in 2022 is expected to maintain a steady growth trend. Since most of the company’s revenue comes from the U.S. market, we pay more attention to the growth of the U.S. market. In 2021, affected by the release of demand after the epidemic and Biden’s financial stimulus, the company’s performance grew rapidly. In the first three quarters of 2021, the company’s operating revenue increased by 38.57%. With regard to 2022, with the weakening of the effect of fiscal stimulus, the demand for relevant orders may slow down slightly. Considering that the penetration rate of smart electric bed is still improving, we expect that the growth of demand related to smart electric bed will continue, and the company’s performance is expected to achieve relatively stable growth in 2022.
