\u3000\u3000 Xiamen Comfort Science & Technology Group Co.Ltd(002614) (002614)
Core view:
After the outbreak of the epidemic outside China in 2020, the performance of many enterprises has declined. However, Xiamen Comfort Science & Technology Group Co.Ltd(002614) as a health industry company mainly engaged in massage products, it seized the development opportunity in the era of epidemic and successfully increased against the trend in 2020.
The growth of the company has many factors. On the one hand, China adjusted its marketing strategy, explored medium and low-end brands in the mainland, reduced the dimension of products and sank to third and fourth tier cities. On the other hand, the company has steadily resumed its bulk business overseas, while adhering to the development of its own brand and transforming from an export-oriented enterprise to a brand operated enterprise. In addition, driven by the epidemic and the company's early technology accumulation, the company's household medical and health environment product revenue increased rapidly, becoming an important growth point of performance in 2020.
After 2021, the company focused on its main business and the health massage business grew steadily. In the field of massage products, because the company has certain advantages in products, brands and channels, leading product technology, proper cost control, rich brand matrix and fast channel feedback, it is difficult for other enterprises to catch up quickly.
Xiamen Comfort Science & Technology Group Co.Ltd(002614) at present, profit growth mainly faces two problems - raw materials, rising sea freight prices and high sales expenses. The rise in the prices of raw materials and shipping is a major challenge facing the whole industry. It is difficult for the prices to return to the normal level before the epidemic in the short term, and the company's gross profit will continue to be under pressure. The high sales expenses are due to the development of more direct stores and brand marketing in Xiamen Comfort Science & Technology Group Co.Ltd(002614) . At present, the company has begun to control the advertising expenses. The expansion of offline stores is mainly oriented to the distribution stores. The proportion of sales expenses has gradually declined in 2021.
In the long-term development in the future, the company insists on deepening and promoting the core main business, and steadily turns the company from agent processing enterprises to independent brand enterprises. Relying on the multiple advantages of its own products, brands and channels, its leading position of massage products will continue to expand, and its income and profits are expected to grow steadily.
