As the pace of IPOs slows down, the Beijing Stock Exchange recently welcomed a newly listed company.
The review results of the Beijing Stock Exchange show that Shandong Taipeng Smart Home Co., Ltd. (referred to as "Taipeng Smart") meets the issuance conditions, listing conditions and information disclosure requirements, successfully passed the meeting, and entered the issuance preparation stage.
It is understood that Taipeng Intelligent is a company specializing in the design, R&D, production and sales of courtyard tents and other outdoor leisure furniture products. From 2020 to 2022, it achieved revenue of 287 million yuan, 472 million yuan, 408 million yuan, and net profit Approximately 18.5149 million yuan, 26.6475 million yuan, 44.0947 million yuan, the scale is considerable.
Against the background of tightened IPOs, Taipeng Intelligent successfully passed the Beijing Stock Exchange, which also reflects the competitiveness of its business model to a certain extent. Specifically, the formation of its competition barriers mainly lies in taking root in overseas markets and focusing deeply on tent products. It is worth noting that under the influence of multiple factors, the challenge of unstable overseas channels has become more and more obvious. At this time, the domestic camping economy is becoming hotter. Can Taipeng Intelligent seize this round of opportunities and achieve sustained growth in performance?
Based on overseas markets, what is the competitiveness of Taipeng Intelligent?
Since joining the WTO, my country has continued to export various basic products to countries around the world as a "manufacturing center" due to its sufficient industrial chain resources.
Taking the outdoor furniture market as an example, data disclosed by Zhiyan Consulting shows that as of 2022, my country’s outdoor furniture output will be approximately 256.507 million pieces, and the demand will be approximately 24.771 million pieces. The demand is only 9.66% of the output. “Due to domestic demand The market is still in the early stages of development, and most domestic companies regard the export market as their focus."
Source: Zhiyan Consulting
Taipeng Intelligent is an enterprise that fully utilizes the endowment resources of China's manufacturing industry, with factories "inside" and channels "outside". The prospectus shows that from 2020 to 2022, Taipeng Intelligent’s export revenue was 271 million yuan, 460 million yuan and 397 million yuan respectively, accounting for 94.89%, 98.08% and 97.86% of the total revenue respectively.
Source: Taipeng Intelligent Prospectus
Taipeng Intelligent's choice to vigorously explore overseas markets is also inseparable from the broad market prospects of its business.
Since most consumers in Europe and the United States have their own courtyards, there is a high demand for courtyard equipment. Statista data shows that by 2023, 234 million Americans are expected to own yard equipment, accounting for 70.27% of the total population. Among them, the size of the courtyard tent market is very significant. According to data from Grand View Research, Inc., the U.S. rooftop tent market will grow at a compound annual growth rate of 7.9% from 2023 to 2030, and the related market size will reach 286.71 billion yuan in 2030.
Under this trend, Taipeng Intelligence has strengthened product design and production according to the consumption habits and preferences of local consumers, and gradually formed a competitive advantage. It is reported that Taipeng Intelligent has a total of 75 patents, including 5 invention patents and 45 utility model patents, including remote control technology for sliding sliding doors, reinforced spliced two-way split tent technology, and screw-free full plug-in quick assembly pulleys. Fabric tent technology, etc. These technologies can reduce tent installation costs while ensuring reliability.
As the quality and grade of products that meet consumer needs improve, Taipeng Intelligent's bargaining power and profitability have also increased.
The prospectus shows that from 2020 to 2022, the unit sales prices of Taipeng smart courtyard tents are 1,376.81 yuan/set, 1,571.74 yuan/set, and 2,269.66 yuan/set respectively. The gross profit margins of the main business are 19.57%, 16.76%, and 26.69%, respectively. Showing an increasing trend year by year.
Source: Taipeng Intelligent Prospectus
In addition, it is worth mentioning that based on its continuous deepening of the tent product market, Taipeng Intelligent has formed high sales channel barriers and has established relationships with major customers such as Lowe's, Walmart, TOOLPORT, Bill Lotto, and Home Depot. Stable cooperative relationship. The prospectus shows that from 2020 to 2022, the total sales revenue of the company's top five consolidated customers were 213 million yuan, 349 million yuan, and 312 million yuan respectively, accounting for 74.73%, 74.46%, and 76.94 of the current main business revenue respectively. %. This reflects to a certain extent that Taipeng Intelligent’s competitiveness is well recognized.
Generally speaking, large supermarket customers such as Lowe's and Wal-Mart will have higher requirements on suppliers' production technology, product quality, product delivery time, etc. Therefore, they will carry out strict qualification identification of suppliers and set up long inspections. However, once the cooperative relationship is established, it will form a higher stickiness.
From this point of view, Taipeng Intelligent does have strong confidence to achieve an IPO, and it also has certain first-mover advantages. The main reason is that looking at the A-share market, there is currently no listed company that is completely comparable to Taipeng Intelligent. Only Zhejiang has relatively similar products and businesses. Yongqiang, Zhejiang Zhengte.
However, from the perspective of sustainable development, Taipeng Intelligence also needs to have longer-term plans for the future. In recent years, under the influence of economic factors such as inflation, the consumer demand of European and American people has shrunk. In particular, the use cycle of non-daily necessities such as tents has been extended, reducing related consumption.
Under this circumstance, Taipeng Intelligent's performance has shown signs of decline. The financial report shows that in 2022 and the first half of 2023, the company's revenue will be 408 million yuan and 147 million yuan respectively, a year-on-year decrease of 13.55% and 28.66% respectively. Of course, this is also a common problem faced by large-scale outdoor leisure furniture and supplies manufacturers. Taking Zhejiang Yongqiang as an example, in 2022, its revenue from Europe, South America and Australia fell by 1.23%, 45.63% and 25.91% respectively year-on-year.
So, how do these companies respond to the downward pressure on overseas channels?
Domestic camping economic dividends are released, how does Taipeng Intelligence exert its influence?
The way Taipeng Intelligent chooses to break the situation is to step up its layout in the domestic market.
In the prospectus, when talking about the necessity of raising funds, Taipeng Intelligent believes that the company needs to seize opportunities in the domestic market and expand the company’s market share. “With the improvement of residents’ living standards and the improvement of their living environment, domestic outdoor leisure furniture and supplies The market demand is beginning to show huge growth potential."
The data disclosed by Huajing Industrial Research Institute also reveals this. In 2020, my country's outdoor furniture market size was 3.32 billion yuan, a year-on-year increase of 18.15%, and the growth rate was higher than the global outdoor furniture market. As residents' living standards improve, the scale of related industries is expected to increase steadily in the future, reaching 6.31 billion yuan in 2025.
Source: Huajing Industrial Research Institute
Among them, the camping tent industry is releasing considerable dividends. Data from the Toubao Research Institute shows that from 2017 to 2021, my country’s camping tent market grew from 1.433 billion yuan to 2.726 billion yuan, with a CAGR of 17.43%. It is expected that the relevant market size will grow to 9.113 billion yuan at a CAGR of 21.09% in 2026.
Source: Toubao Research Institute
Considering that Taipeng Intelligent has only extracted about 10 million yuan in revenue from the domestic market in the past few years, it will undoubtedly open up greater room for growth by focusing on the booming domestic tent market. However, since most domestic residents live in buildings, there is little demand for courtyard tents. In this regard, Taipeng Intelligent needs to reorganize its product line, which also means that it will face the competition of major camping tent companies such as Mugaodi and Sanfu Outdoor. compete.
In fact, compared with first-line companies in the industry that focus on the domestic market, Taipeng Intelligent R&D investment is not high. Taking 2022 as an example, Taipeng Intelligent's R&D expenses will be 7.1243 million yuan, a year-on-year decrease of 14.18%; during the same period, Mugaodi's R&D expenses will be 36.1537 million yuan, a year-on-year increase of 42.31%.
However, with a clear market strategy in place, it is only a matter of time before companies increase investment in R&D. And for Taipeng Intelligent, the development paths of companies such as Mugaodi may provide some reference for their subsequent market exploration.
According to Mafengwo’s “2022 Camping Quality Research Report”, women are the main decision-makers in camping consumption, accounting for 64%. In addition, parents and children born in the 1980s, as well as those born in the 90s and 00s are the main groups of camping consumers, accounting for more than 80%. These young consumer groups attach great importance to the comfort of camping and the quality of camping products.
Therefore, starting in 2020, Mugaodi has actively carried out strategic transformation in conjunction with the above-mentioned market trends, shouted the slogan of "exquisite camping", and launched the fifth-generation "Cold Mountain", Holiday Starry Sky, Holiday Mountain Residence and other products. In 2021 and 2022, Mugaodi's own brand revenue will surge by 90% and 130.5% respectively, becoming an important engine for the company's growth.
From this point of view, if Taipeng Intelligent hopes to achieve outstanding results in the domestic tent market, it will need to combine the young people's pursuit of high-quality life and comprehensively improve and optimize product definition, research and development, channels, etc. .
This is also a major incentive for Taipeng Intelligent to seek listing. The prospectus shows that Taipeng Intelligent plans to raise 120 million yuan this time on the Beijing Stock Exchange, of which 80 million yuan will be used for high-end intelligent outdoor home production line projects and 100 million yuan for high-end outdoor smart home R&D center projects. After the project is implemented, it is expected to increase the production capacity of high-end smart outdoor household products by 30,000 sets per year.
In the future, as the domestic economy continues to improve and consumer demand gradually increases, Taipeng Intelligent Project's production capacity digestion will have more sufficient market guarantees. At the same time, its development experience in overseas markets may allow it to have higher standards for product research and development for the domestic market. Blessing. Therefore, it can be said that regardless of whether it can achieve leapfrog development in the domestic camping tent market, in the context of the continuous release of camping economic dividends, Taipeng Intelligent's strategic transformation has already laid important foreshadowing for future performance improvement.
Author: Tianyu
Source: Pinecone Finance