A-shares subscription | Hangao Group (001221.SZ) opens subscription, important clients include Beijing De Fengtai Home Furnishings, Suzhou Wufan Home Furnishings, etc.

On July 21st, Hangao Group (001221.SZ) began accepting subscriptions with an issue price of 15.43 yuan per share and a subscription limit of 10,500 shares, a P/E ratio of 11.86 times, listed on the Shenzhen Stock Exchange, with Guotai Haitong as the sponsor. According to the prospectus, Hangao Group is mainly engaged in the research, design, production, and sale of home hardware and outdoor furniture products, integrating diversified original design with high-quality products, dedicated to providing customers with aesthetically pleasing, meticulously crafted, and practical home storage hardware, basic hardware, kitchen and bathroom hardware, and outdoor furniture products. The company's products have a wide coverage and a wide range of downstream applications, including kitchens, bathrooms, bedrooms, dining rooms, courtyards, etc. The company conducts product sales domestically and internationally through a combination of distribution and direct sales, online and offline channels to meet the diverse needs of customers at home and abroad, laying a good foundation for the company's sustainable development. During the reporting period, sales to the company's top five customers accounted for 10.86%, 9.84%, and 8.35% of operating income. Important customers include Beijing Defengtai Household Products Co., Ltd., Nanjing Chenlai Household Trade Co., Ltd., Suzhou Wufan Household Co., Ltd., Kaja Horeca Interieur B.V., etc. Currently, the home hardware market is relatively fragmented, with most companies in the industry mainly engaged in OEM, having a small scale, and facing severe homogenization, engaging in low-price competition for survival space. With the optimization of industrial structure and the upgrading of market consumption, industry-leading companies rely on their advantages in product quality, brand, channels, technology, management, and scale to shift their focus to the mid-to-high-end market, providing high-quality, diverse products to the market. Currently, the mid-to-high-end market of home hardware is mainly dominated by foreign brands, including Blum, Hettich, and Kessebohmer, while domestic brands also enhance market competitiveness through product innovation, technological upgrades, brand building, achieving breakthroughs in the mid-to-high-end market, with local representative companies including Hangao Group, Dongtai Hardware, Tute Shares, Huitailong, and Yajie hardware, etc. The company has a nationwide distribution network with deep penetration; it also continues to expand market coverage through direct sales, e-commerce, online commerce, and export channels, continuously enhancing the popularity of the Hangao brand. As a high-tech enterprise, the company has a complete R&D system and a professional R&D team, having set up a provincial-level industrial design center, participating in the formulation of industry standards such as "Household Kitchen Equipment," "Household Functional Hardware Basket," "Intelligent Purification Stainless Steel Sink," and being one of the first units to contribute to the compilation of the first set of textbooks in the cabinet industry. During the reporting period, the company was recognized as a demonstration enterprise for high-quality development in the home industry, one of the top 100 manufacturing companies in Foshan, and the manufacturing champion enterprise in Foshan High-tech Zone. It has also won awards such as the CF Design Gold Award, the German IF Design Award, the German Red Dot Design Award, and the Himalayan Design Summit Award. Financially, the company is expected to achieve operating income of approximately 1.62 billion yuan, 2.22 billion yuan, and 2.85 billion yuan in 2022, 2023, and 2024 respectively, with net profits of approximately 206 million yuan, 333 million yuan, and 531 million yuan during the same period.