The stock price has soared! This outdoor product is selling rapidly

In Western countries such as Europe and the United States, people have a special liking for outdoor sports, and outdoor products have always enjoyed a good market share. Although the demand for outdoor products in overseas markets has declined due to the sudden outbreak, as the global epidemic gradually improves, people's outdoor activities have increased in frequency, and the market demand for outdoor equipment products has also rebounded.

Thanks to the love of outdoor sports among European and American people, outdoor products have always been an ever-popular category on Amazon. There are also many cross-border sellers in China that specialize in such products. For example, Ancheer, a brand under Savi, sells mountain bikes, skateboards, tents and other outdoor products. Today we are talking about the outdoor product brand Mogodi from Zhejiang.

The stock price fluctuated abnormally for three consecutive trading days . The official response of Mogodi

During three consecutive trading days on May 13, May 16, and May 17, 2022 , the actual fluctuation range of the stock price of Mutagudi after excluding the overall factors of the market and the sector was large, and the cumulative deviation of the closing price increase reached 20%. The stock turnover rates were 4.85%, 4.85%, and 5.33%, respectively. The turnover rate was high and the trading volume was also large.

As of the close of May 17, 2022, the dynamic price-to-earnings ratio of Muco's A-share stock was 68.14 times, and the average dynamic price-to-earnings ratio of the textile and apparel industry was 29.53 times. Its dynamic price-to-earnings ratio is higher than the industry average.

According to the relevant provisions of the "Shanghai Stock Exchange Trading Rules" , this is a case of abnormal stock trading fluctuations.

Image source: taken from Eastmoney.com

In response to this situation, Muco issued an announcement on May 17, stating that after the company's self-inspection and written inquiries to the company's controlling shareholder and actual controller, as of the date of disclosure of the announcement, it was confirmed that there had been no major changes in the company's daily operations and external environment, and there was no material information that should be disclosed but was not disclosed. Investors were also reminded of the risks of secondary market transactions.

As a major outdoor products company, the capital market business opportunities hidden behind the abnormal fluctuations in Mugoro's stock trading are thought-provoking.

Introduction and revenue of Mutadu

Zhejiang Moco Outdoor Products Co., Ltd. is one of the professional brands in China's outdoor industry. Since entering the outdoor industry in 2003, it has been focusing on the research, design and sales of outdoor products, and has always been committed to promoting an outdoor lifestyle.

At present, the main business of Mobi Garden includes two major business segments: brand operation business (own brand Mobi Garden) and camping tent OEM/ODM business. In addition to the main brand "Mobi Garden", it also has sub-brands "Mobi Garden Urban" and mountain clothing "MOBI VILLA".

Mobi's brand business focuses on the domestic market , while its OEM/ODM business provides global customers with development, design and manufacturing services for high-quality tent products. Its products are exported to international markets such as Europe, Australia, New Zealand , Asia and the United States.

Relying on the good reputation accumulated for its product quality and service, Mobo has formed an intangible brand advantage. Its brand has gained wide recognition in domestic and foreign markets, and its influence has been continuously consolidated and expanded as outdoor sports become more popular in people's lives.

In addition, in order to enhance its competitive advantage in the industry, Moco is also constantly optimizing its product line . In 2021, Moco's R&D expenses were 25.4 million yuan, an increase of 18.75% year-on-year. Moco said that in the future, it will refine its product line, enhance the competitiveness of new products, and strive to create a refined camping lifestyle brand with a full range of categories.

Thanks to its unique market competitiveness, Muco's revenue capacity is also growing. In 2021, Muco's operating income was 923 million yuan, a year-on-year increase of 43.64%. The net profit attributable to shareholders of the listed company was 78.61 million yuan, a year-on-year increase of 70.99%.

In terms of products, tents and equipment are the main source of revenue for Mogod, with operating income of 771 million yuan in 2021, a year-on-year increase of 43.78%, accounting for 83.54% of total revenue. In addition, revenue from clothing and shoes, accessories and other products accounted for 11.26% and 5.02% of total revenue, respectively.

During the first quarter of 2022, Mogod achieved a main business income of 327 million yuan, a year-on-year increase of 56.09%. Among them, the export (OEM/ODM) business income was 234 million yuan, a year-on-year increase of 43.98%; the brand business income was 92.9166 million yuan, a year-on-year increase of 98.16%.

The rapid development of Mugodi is also closely related to the good prospects of the camping industry in which it is located.

The prospects for outdoor products are bright, with global sales expected to exceed US$ 37.2 billion in 2022 !

As the global epidemic continues to recur, more consumers are choosing outdoor camping, a safe and fun outdoor leisure activity, which has also driven the rapid growth of demand for camping equipment. In 2018, global outdoor products sales were approximately US$24.8 billion, and it is expected that by 2022 , this figure will exceed US$37.2 billion.

Among them, European and American consumers are loyal fans of camping activities. According to a report by the American Camping Association (Kampgrounds) , in 2020 , 48.2 million households in North America camped at least once, of which 10.1 million households camped for the first time, and the proportion of first-time campers increased fivefold from the previous year .

Data from Cotswold Outdoor shows that the camping product market in the UK is also growing rapidly, with sales in the market increasing by 60% year -on-year in 2020. According to data released by the Korea Trade Statistics Promotion Agency, South Korea's exports of camping products in the first half of 2021 amounted to US$102 million, a year-on-year increase of 84.7%, while imports of camping supplies in the same period amounted to US$191 million, a year-on-year increase of 105.1% .

With hidden business risks, how will Mutagudi make progress in 2022 ?

The development of an enterprise often involves both opportunities and challenges. Although the outdoor sports market in which Mobi is located is booming, there are still many risks in the operation of Mobi.

Mobo's overseas business is distributed in more than 20 countries and regions, and its product exports will be affected by changes in the international political and economic environment. If there are adverse changes in industrial policies, trade policies or certain foreign exchange controls related to Mobo's products, it will have a certain impact on the company's performance.

As the scale of the outdoor sports market grows, more sports, leisure and fashion brands have entered the outdoor market, and the competition in the market has become increasingly fierce. The latest report released by COCA shows that although the outdoor products market is still growing, the market growth rate has slowed down slightly.

In the face of these risk factors, Mutagudi stated that in 2022 it will continue to explore consumer demand in depth, strengthen the development of potential markets, and at the same time manage the costs of raw materials and logistics, and promote the development of export business from multiple aspects such as the business end, supply chain end, and product development end.

At the same time, Mutagudi stated that it would also formulate differentiated operating strategies to promote organizational construction and improvement of operational efficiency, and to do a good job in brand operations from the perspectives of sales channels, marketing, product development, etc.

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