Half-year net profit exceeds 40 million! Fujian sells well and hits the "first stock"

Half-year net profit exceeds 40 million ! Fujian sells well and hits the "first stock"

The camping economy has driven the popularity of outdoor products. Compared with the domestic market, people in Europe and the United States have a stable and high demand for outdoor products.

With the popularity of outdoor products, domestic outdoor products have penetrated into the foreign market with their own product strength and ushered in rapid development.

Xiamen Duyuan Outdoor's performance is improving rapidly

Xiamen Duyuan Outdoor 's product business is RV yacht supporting products and water leisure products , and its products are sold to economically developed regions such as the United States, Australia, Canada and Europe. In 2021, the company's revenue reached 352 million yuan and its net profit reached 75 million yuan, which is even higher than the profits of many listed companies.

Xiamen Duyuan Outdoor's two main product series helped boost the company's performance.

RV and yacht supporting products: small and micro water pumps, special toilets for yachts and RVs, portable oil drums, deck covers, control switches, cleaning kits, etc. At present, this category of products has become a steady and rising source of income for the company, contributing 63.36% of the company's revenue in 2021, reaching 221 million yuan. Small and micro water pumps are the most profitable products in this subcategory, with revenue of 163 million yuan in 2021, accounting for 46.82% of the total revenue.

Water sports products: kayaks (blow-molded children's boats, blow-molded single-person platform boats, etc.), paddle boards and their supporting products. This category accounted for 34.83% of the company's revenue in 2021, which was 121 million yuan. Among them, kayaks accounted for the highest proportion of total revenue in this category, which was 31.14%, reaching 109 million yuan.

In July of this year, Xiamen Duyuan Outdoor submitted a prospectus to the Shenzhen Stock Exchange, intending to list on the Shenzhen Stock Exchange's ChiNext .

Recently , Xiamen Duyuan Outdoor Products Co., Ltd.'s GEM IPO has just completed the first round of inquiries .

According to the latest updated prospectus of Xiamen Duyuan Outdoor, in the first six months of 2022, the company achieved operating income of 180 million yuan and net profit attributable to the parent company of 41.3039 million yuan. The proportion of export revenue in the main business revenue reached 86.39%.

If Xiamen Duyuan Outdoor is successfully listed, it will become the "first stock in RVs and yachts."

Duyuan Outdoor's multiple products have strong sales growth momentum

Xiamen Duyuan Outdoor 's popular products include small and micro water pumps , kayaks and other water leisure sports products .

Among them, the sales volume of small and micro water pumps increased from 715,200 units in 2019 to 1,599,100 units in 2021.

The sales volume of water leisure sports products such as kayaks also grew very rapidly , from 50,500 units in 2019 to 189,200 units in 2021.

The company initially started with ODM/OEM, and currently combines its own brand SEAFLO and ODM/OEM models.

It is worth noting that many products of Xiamen Duyuan Outdoor have long been ranked at the top of the BS list of the Meiya Station.

Taking the SEAFLO series of products as an example, one product ranks third in the electric water pump category , with very high sales and an average score of 4.4.

As a leading seller of outdoor products, Xiamen Duyuan Outdoor has strong R&D and design capabilities and has been increasing its investment in product R&D. As of the date of signing of the prospectus, it has registered a total of 190 domestic and foreign patents. From 2019 to 2021, the company's R&D expenses were 4.88 million yuan, 9.23 million yuan and 13.24 million yuan, respectively, and the proportion of the company's revenue has continued to rise, with an average annual compound growth rate of 64.81%.

At present, its wholly-owned subsidiary Fujian Ai has been recognized as a high-tech enterprise and has been awarded the titles of "Fujian Science and Technology Little Giant Enterprise" and "Fujian 'Specialized and New' Small and Medium-sized Enterprise".

However, it should be noted that despite the steady increase in revenue in the first half of the year , Xiamen Duyuan Outdoor is still conservative about its performance in the second half of the year . This is because the company's costs are greatly affected by the macro-economic environment , and rising raw material costs will inevitably increase product prices . In addition, yacht accessories and water sports products are not necessities of life. In the current market environment, product demand is also continuing to decline, and the current market competition is also intensifying.

For Xiamen Duyuan Outdoor, it is crucial to expand product categories and continuously improve technical level and market competitiveness while optimizing its own products .

The RV market has grown by nearly $30 billion in 5 years, releasing dividends

Judging from the financial report of Duyuan Outdoor in the first half of this year, the company's main business income comes from RV and yacht supporting products and water leisure sports products , and its sales are mainly in overseas regions, accounting for nearly 90% of its sales revenue .

This shows how vast the overseas market is for such leisure sports products.

Taking RVs as an example, Duyuan Outdoor exports its products to North America, Europe, Oceania and other regions that love outdoor leisure sports. In addition, benefiting from the epidemic, overseas consumers have unprecedentedly strong demand for non-gathering outdoor activities, so leisure boats and RVs have become the top two markets with the highest added value in the outdoor leisure industry in the past two years .

According to data from international market research firm Technavio, the global recreational vehicle market, including RVs, is expected to grow by US$28.62 billion between 2022 and 2026, growing rapidly at a compound annual growth rate of 7.48% during the forecast period .

PR Newswire reported that the surge in leisure and entertainment activities will drive the growth of RV rental services , thereby promoting the growth of the global RV market. From 2022 to 2031 , the global RV market will grow at a compound annual growth rate of 7.6% , with North America being the main region.

In 2021 , North America accounted for more than 40% of the global RV market share , and it will maintain its dominant position in the global market between 2022 and 2031 .

Furthermore, Asia Pacific is expected to witness the highest CAGR of 9.3% during 2022-2031 , owing to the rising urban population and increasing disposable income of the people , resulting in the increasing penetration of RVs .

Even though the current economic crisis is intensifying and the consumer market is sluggish , a survey by the Recreational Vehicle Industry Association ( RVIA ) shows that nearly 72 million Americans plan to travel in RVs they own, rent or borrow in 2022.

RVIA President Craig Kirby once predicted that the total sales of the U.S. RV industry in 2022 will be approximately 600,000 to 630,000 vehicles , which may increase by 1.9% compared with 2021 .

Nowadays, RV traveling or living is increasingly popular among young consumers . As demand continues to increase, the market for related accessories is also growing accordingly.

Data shows that nearly 70% of RV owners have increasingly higher requirements for RV showers, power supplies, drainage and water supply, garbage collection and storage, catering and other facilities, so the sales market for RV accessories has also been driven.

In addition to RVs, recreational boats have also become one of the most popular outdoor leisure tools for European and American consumers. According to a report by the U.S. Coast Guard and RTI International , 14.5 million American households owned or shared recreational boats in 2020. Among them, 8.89 million households owned or shared open powerboats, cabin powerboats, flat-bottomed boats or sailboats.

In addition , a survey by Ferretti SpA, a well-known Italian yacht manufacturer , revealed that the global leisure yacht market size will have an average annual compound growth rate of 7.3% from 2020 to 2025 , and the demand for yacht supporting products will also increase rapidly .

The epidemic has caused collective sports to become a "luxury", while non-gathering, spontaneous leisure outdoor sports have gradually become consumers' favorites. Therefore, leisure outdoor sports products such as RVs and yachts have also burst out with unprecedented market potential.

In the future, as the global demand for RV yacht accessories and water leisure sports products is rapidly released , the dividends and advantages of this field will become more obvious . If Duyuan Outdoor successfully sprints for IPO and becomes the "first RV yacht stock" in China, its market dominance may be guaranteed.

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