Shen Wan Hongyuan released a research report saying that maintaining the “buy” rating of JS Global Life (01691), the company spun off the SN European and American business for 3 years, adjusted the profit forecast, and split it into three parts: the Jiuyang Division, SN Asia Pacific, and the procurement business. Domestic sales in the Jiuyang Division were sluggish, and H1 revenue from the Joyang Division fell 3.18% year on year. The bank expects a year-on-year decline of 18%; SN Asia Pacific is expected to achieve revenue of 113 million US dollars and maintain rapid growth; the procurement business is relatively stable.
The report's main points are as follows:
SN was split into a US stock listing, and the Asia Pacific business remained with the Retention Group.
The company's 03H1 achieved revenue of US$574 million, or -18.45%; achieved profit of US$46 million during the continuous operation period, or -30.3% year-on-year; realized net profit of US$180 million (including profit of US$93 million during the termination of operations due to the SN spin-off), or -.0% YoY. After the split of SN, JS Global Life Retention Group included part of SharkNinja's Asia Pacific business and Joyang shares. The main market was mainland China; SharkNinja's US and European divisions were split into the US stock market. After the split listing, SharkNinja Group will continue to conduct ongoing transactions with Retention Group, including SharkNinja Group's brand license to Retention Group and Retention Group's provision of procurement business to SharkNinja Group.
SN Asia Pacific is growing rapidly, and Joyang's domestic sales are under pressure.
By region, 03H1SharkNinja Asia Pacific achieved total revenue of US$49 million, a year-on-year increase of 73%, and the 03H revenue growth target was 50%, of which Japan achieved revenue of US$37 million, a year-on-year increase of 33%, and the 03H revenue growth target was 30%. The company has completed strategic mergers and acquisitions, directly entered the Australian, New Zealand, Singapore and Malaysia markets, and is expected to complete the construction of a sales network in South Korea in the second half of the year. The ODM category of the Joyang division was further expanded, and 3H1 overseas revenue was 49.% year-on-year. After a 0-year overseas inventory removal cycle, the current market inventory level is healthy, and the downstream demand side is recovering steadily. The revenue of the company's SN Asia Pacific division showed a rapid growth trend. The market share of the core Japanese cordless vacuum cleaner category rapidly increased from 1.8% in May to 16.1% in July; the Joyang division is affected by weak sales of small kitchen appliances in China, and sales are under significant pressure.
Establish the Hong Kong Science and Technology Innovation Center to enhance global competitiveness.
In order to meet the R&D and supply capabilities of overseas markets and establish an efficient operation mechanism for industry, education and research with leading international institutions, Joyang Co., Ltd. announced on January 16, 2003, that it plans to increase the capital of Joyang Hong Kong Company by 100 million US dollars to build a science and technology innovation center in Hong Kong through Joyang Hong Kong Company to enhance its competitiveness in the global market. After the establishment of the Hong Kong Science and Technology Innovation Center, the bank believes it is expected to use this as the center to carry out global business radiation.