Aojiahua (002614): High-growth domestic market is expected to form a matrix of independent brands

Aojiahua (002614): High-growth domestic market is expected to form a matrix of independent brands

The global massage chair leader multiplied by the domestic market’s Dongfeng, for the first time covered the company that received the “strong recommendation” rating for resetting its own brand + ODM two-wheel drive massage device industry leader.

We believe that under the background of population aging and consumption upgrade, through the effective education of mass consumers through shared 深圳桑拿网 massage, China’s massage healthcare industry is about to usher in a golden period of accelerated penetration.

The company focuses on the “massage chair + AI” strategy, with outstanding technology and product power, the formation of an independent brand matrix, and the domestic market is expected to gain accelerated growth.

We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 5, respectively.

63/7.

33/9.

60 ppm, corresponding EPS is 1.

00/1.

31/1.

71 yuan, the current sustainable corresponding PE for 2019-2021 is 17/13/10 times.

Covered for the first time and given a “strong recommendation” rating.

Aging is driven by the need for supplementary health, and the penetration rate of the domestic massage chair industry is expected to usher in accelerated population aging. The problem of aging of the population is increasing, and the sub-health status of the young and middle-aged population is increasing, driving the rapid growth of the market demand for massage health equipment.To promote mass consumer education, China has gradually upgraded from a global massage chair production base to a new growth pole for the massage chair consumer market.

At present, the size of China’s massage equipment market is only US $ 12 billion, and the home massage chair retention rate is less than 1%. By benchmarking against the 10% level of mature markets in Japan and South Korea, the increase in the penetration rate of the domestic market will bring broad growth space.

In the era of mass consumption, the growth rate of the massage chair industry is expected to remain above 20%, and the market size of 100 billion yuan is expected.

Aojiahua: Improved product competitive advantages, the formation of an independent brand matrix, and high growth in the domestic market. The company is deeply cultivating the field of massage equipment. Through “overseas mergers and acquisitions + self-establishment”, it has formed the global layout of five independent brands, and gradually established technology, brands and channels.And other multiple competitive advantages.

The company focuses on the “Massage Chair + AI” strategy, leading the research and development of technologies such as “4D warm-sensing massage movement” and intelligent soreness detection; the independent brand Aojiahua is positioned in the Asian high-end market, and the star product “Imperial Warming Master Chair” replaces intergenerational competitionIts advantages have been well received by the market since its listing. In 2019, it will be used with a second brand to further explore the rapidly evolving mid-to-low-end market.

In the future, the company’s reorganization relies on ODM’s deep accumulation and solid overseas, and cooperates with BJSC to explore multiple new markets such as South Korea; gradually improve the domestic brand matrix to develop 杭州桑拿网 domestic sales, transform the star consumer products into the mass consumer market, and achieve sustained high growth in the domestic market.The leading advantages of the industry have gradually been further consolidated.

Risk reminder: The penetration rate of domestic massage chairs is lower than expected, exchange rate risks, etc.