\u3000\u3000 Shenzhen Breo Technology Co.Ltd(688793) (688793)
Main points
Shenzhen Breo Technology Co.Ltd(688793) deeply ploughed the massage track for more than 20 years, which is the first share of health intelligent hardware.
Product positioning is high-end, target customers are accurate, short-term channel expansion and new product promotion are stable, long-term brand rejuvenation and “Z generation” consumption upgrading meet the healthy economic trend, and the potential is expected. The company has formed a relatively stable ecosystem in many aspects such as brand operation, channel control and supply chain construction. With efficient R & D innovation and marketing promotion investment, the company has excellent product innovation and iterative ability. The revenue of 21q1-q3 company was 813 million yuan, a year-on-year increase of + 55.66%.
The industry penetration rate is low, the healthy economy accelerates the market expansion.
Modern massagers originated in Japan in the 1960s. After the 21st century, the global massager industry chain was transferred to China. In 2020, the market scale of China’s small massager is expected to be close to 8 billion yuan. At present, China’s small massager Market is still in the cultivation period, and the penetration rate is only 1.5%. The competition pattern of the industry is relatively scattered, and the leading advantages of subdivided categories are significant. In 2020, the top three brands in China’s massager industry are Shanghai Rongtai Health Technology Corporation Limited(603579) , Xiamen Comfort Science & Technology Group Co.Ltd(002614) and Shenzhen Breo Technology Co.Ltd(688793) , with market shares of 5.9%, 5.3% and 5.0% respectively. Shenzhen Breo Technology Co.Ltd(688793) as the pioneer of eye and head massager, it has a leading edge in the small massager industry. In 2021, the market share of the company’s online eye massager and head massager was 21.5% and 54.1% respectively, ranking first in terms of market share.
Perfect product layout and multi-dimensional advantages.
Integrating the concept of traditional Chinese medicine, scientific research has significant empowerment. Products: the company’s product design has won many international authoritative awards, continued to maintain high R & D investment, constantly pushed new and higher, and avoided the risk of price reduction caused by product imitation by competitors. Channel: pay attention to the construction of diversified channels, focusing on the direct marketing mode, supplemented by the distribution system. Marketing: effective drainage of offline Direct stores, hiring top stars for endorsement, constantly injecting young vitality and maintaining high-end tone into the brand.
Investment advice
We expect that from 2021 to 2023, the company’s operating revenue will reach 1.256 billion yuan, 1.808 billion yuan and 2.418 billion yuan, with a year-on-year increase of 52.01%, 43.90% and 33.75%. The corresponding net profit attributable to the parent company will be 120 million yuan, 178 million yuan and 256 million yuan, with a year-on-year increase of 69.2%, 48.4% and 44.0% respectively, and the corresponding EPS will be 192 yuan, 285 yuan and 411 yuan respectively. Shenzhen Breo Technology Co.Ltd(688793) deeply ploughed the massage track for more than 20 years, which is the first share of health intelligent hardware. Massage small electric circuit has strong growth attributes, and the industry scale and concentration are expected to rise. The company has significant advantages in products, channels, marketing and operation, and its future potential can be expected. First coverage, “buy” rating.
Risk tips
Risk of recurrent outbreaks; Price fluctuation of raw materials; Industry demand is less than expected; The risk of intensified industry competition; Risks such as new products falling short of expectations.
