Xinbao Shares (002705) Company In-depth Research Report: OEM Leader Converts OBM Private Brand to Open Domestic Market

Western-style small household appliances export leader, transform OBM to expand the domestic market.

The company is mainly export-oriented and is a leading exporter of Western-style small household appliances. It is mainly oriented to European and American markets, and its customer distribution is relatively balanced.

The main category is small kitchen appliances in the western style, and it is gradually expanding to the field of home care appliances, baby appliances, personal care and beauty appliances. At present, the product covers more than 20 major categories, and the product specifications exceed 2,000 models. The product line is rich and can meet international requirements.Well-known brands, retailers need one-stop shopping.

The company’s business types are mainly ODM and OBM, and domestic sales are mainly expanded through OBM.

At present, the company’s independent brands mainly include Mofei, Dongling, Yum !, Tooting, Gelan, Lycra and so on. Among them, Mofei is the only authorized British agency brand. After 2017, it will be popular and drive the company’s domestic sales revenue to grow rapidly.

Offline channels → traditional e-commerce → social platforms, the small home appliance industry is gradually shifting to a new retail model.

The small home appliance market in the overseas market is relatively mature, with a large number of categories, and the demand for redemption keeps the market growing slightly.

Most domestic small household appliance categories are still in the introduction and growth stages, and the population is low. The phased demographic dividend of other mainstream consumer groups will also promote the domestic demand for small household appliances in the future.
10% for 5 years?
15% faster growth.
From the perspective of supply, the small home appliance industry has a large number of categories, small batch production, and homogeneous competition. From the perspective of demand, the consumption frequency is high, the unit price is low, and the optional consumption attributes are strong.

These characteristics are mainly based on offline third-party channels in the early stage, and the leading players have the first-mover advantage. Offline channels are basically monopolized by the United States, the United States and the Soviet Union. After the rise of e-commerce, due to its low barriers and fast dissemination, new brands entered the market.The opportunity; the subsequent popularization of social applications has brought about innovations in marketing models, the application of big data and the in-depth excavation of user needs to promote the transformation of the small home appliance industry to a new retail model, and the transformation into diversified social marketing has given rise to a new round of online dividends, Dyson’s curling wand, Mofei’s juice cup and multi-function pan, bear’s multi-function toaster and many other new brand phenomenal products came into being.

Compared with traditional marketing, social e-commerce content marketing is more accurate and efficient, providing new brands with a cost-effective overtaking opportunity.

High-quality products are the shield, precision marketing is the spear, and the supply chain responds quickly. The company is expected to rebuild “Mofei”.

The popularity of Mofei products is first of all to develop “good products” and massage and fly overseas products. The domestic explosion models have been adapted in terms of function and appearance to better meet local needs. At the same time, they have avoided the advantages of induction cookers and electric pressure cookers in their categories.Carry out differentiated competition; followed by “Smart Marketing”, promote high-quality content on social platforms and lead consumption through KOL propaganda; finally, support from the supply chain is needed.

At present, the company implements a product manager responsibility system, and through years of ODM business experience to accumulate technical advantages to nurture independent brand product research and development; implements a content manager system to deeply understand traffic and channel operations, and precisely target users’ pain points; integrate supply chain manufacturers to form deep self-supporting capabilities,And implement manufacturing classification and flexible production management to improve production efficiency.

The three advantages of product, marketing and supply chain are expected to continue.

In the future, 都市夜网 the company’s internal ODM business may expand its scale through cooperation with Xiaomi, Mingchuang Youpin, etc. The OBM business will also drive rapid brand growth through hot-selling products. The proportion of high-margin business will gradually increase, and the optimization of business structure and scale effect willDrive the company’s profitability to continue to improve.

Profit forecast and estimation
Operating revenue in 2021 will be 92.



8.8 billion to 96.



3.5 billion, a ten-year growth rate of 14.

22% / 14.

03% / 13.

97%; net profit attributable to mother



3.9 billion adjusted to 6.



980,000 yuan, an increase of 26 in ten years.

97% / 25.

13% / 24.

EPS is 0.


24 yuan, corresponding to the current expected PE multiple of 24.



66 times.

The company uses the product manager system + content manager system to create explosive products, drives the brand with products, and connects the successful precedents of Mofei. It develops multiple independent brands through social e-commerce channels to further open the domestic market.

At the same time, the company’s foundry business continued to increase the proportion of ODM, build a super supply chain to ensure rapid response to orders, strengthen cooperation with domestic Internet companies to further establish scale advantages, business structure optimization and scale effects will continue to improve the company’s profitability.

The current company is estimated to be less than 24 times, which is equivalent to the evaluation level of Jiuyang, but it is significantly lower than Supor.

Taking into account that the company’s business structure from ODM to OBM brings business value improvement, its forecast level is expected to approach Su Jiu, giving the company 24 times PE in 2020, based on 2019?
EPS is 0 in 2021.



The performance forecast of 24 yuan, the target price of 24 yuan, the rating was adjusted from “overweight” to “buy”.

Risks suggest that exchange rate changes may lead to foreign exchange losses, the construction of independent brands exceeds expectations, and industry competition is intensifying.