2021-12-13 Shanxi Securities Co., Ltd. conducted a research on Bailuan and issued a research report entitled "the company category matrix is gradually improved, and the accurate positioning of users opens the imagination space". This report gives an overweight rating to Bailuan, and the current stock price is 103.8 yuan.
Relaxed (688793)
The company is the leading enterprise of small intelligent massage apparatus in China. The company focuses on the R & D, production, sales and service of intelligent portable massage. at present, it has formed a product system with four categories of eyes, neck, head and scalp as the main body, and the rest of the body prone to fatigue and other intelligent health products as the supplement. The newly released moxibustion maintenance series belongs to the hardware with consumable operation mode. Through the repurchase of consumable goods, the company can reduce the cost of obtaining customers and improve the stickiness of customers. It is expected that it will continue to contribute stable income to the company in the future.
The domestic massage equipment market penetration rate is low, the development space is broad. The global market scale of massage equipment shows a stable development trend, with a growth rate of about 10%. The global market for massage equipment exceeded $15 billion for the first time in 2019. According to our estimates, the massage equipment market is expected to reach US $17.8 billion in 2021, an increase of 11% over the same period last year. China has become one of the regions with the fastest growing market demand for massage equipment in the world. At present, the penetration rate of massage equipment in China is less than 2%, while the penetration rate of mature markets such as Japan and South Korea is close to 20%, with about 10 times the permeability improvement space.
The positioning of the company's users is clear, and the brand awareness is obviously opened. With the continuous emergence of scientific and technological concepts such as personal health cloud management, health data analysis and artificial intelligence interaction, the intelligent products of the company continue to upgrade, and the innovation cycle continues to shorten. The company maintains about 8 new product launches every year, focusing on the iteration of existing products and taking into account the development of new categories. The company's products are located in the middle and high end, with the new product + innovative pricing method as the pricing strategy, the product customer unit price is much higher than the market average, and the gross profit margin of the main products is more than 50%. The company adopts diversified marketing means to increase the promotion efforts in the channel and terminal promotion activities through the signing spokesman to carry out effective brand communication and concept promotion, further enhance the brand awareness of the company, and significantly increase the number of young consumers.
Profit Forecast and Investment rating
We forecast that the operating income of the company from 2021 to 2023 is 12.15pm 17.25 / 2.346 billion yuan, and the net profit returned to the parent is 1.2pm 1.92 / 281 million RMB respectively, and the current stock price corresponds to 46pm 28.8max PE. Considering the large development space of the industry in the future, as well as the company's market position in portable mobile massages, the "overweight" rating was given for the first time.
Risk tips: insufficient consumer demand, slow product updates, slow development of offline stores, and substantial fluctuations in raw materials.
A total of 24 agencies have rated the stock in the last 90 days, including 15 buy ratings and 9 overweight ratings; the average institutional target price in the past 90 days is 126.29; according to the Securities Star valuation analysis tool, the good company has a rating of 4.5 stars, a good price rating of 1 star and a comprehensive valuation rating of 2.5 stars. (rating range: 1-5 stars, up to 5 stars)