R&T(002790) 长江证券·2024-04-26 03:02Investment Rating - The report assigns a "Buy" rating for the company [4]. Core Views - The company is expected to leverage its advantages in smart toilet manufacturing, driving growth through a dual strategy of "own brand + OEM". The online growth of its own brand and accelerated offline store openings are anticipated to contribute to revenue growth, with significant potential in overseas markets such as the Middle East and the United States. The year 2024 is projected to be a pivotal year for international expansion, with expected revenue growth of 23% in 2024, 22% in 2025, and 20% in 2026 [2][12]. Summary by Sections Company Overview - The company, established in 1999, initially focused on manufacturing water-saving flushing components and has since expanded into smart toilet products. In 2023, the revenue breakdown was 28% from water tanks and accessories, 58% from smart toilets and covers, and 10% from same-layer drainage products. The company holds the top market share in flushing components in China and ranks among the top three globally [7][20]. Industry Analysis - The domestic smart toilet industry has shown significant growth, with a production volume of 9.9 million units in 2022, accounting for 66% of global production. The industry has benefited from advancements in manufacturing technology and a shift towards domestic brands, with major players like Jomoo and Arrow gaining market share [8][55]. Financial Performance - In 2023, the company reported revenues of 2.184 billion yuan and a net profit of 218 million yuan, with a three-year compound annual growth rate (CAGR) of 19% for revenue and 24% for net profit. The revenue from smart toilets has increased significantly, with its share rising from 23% in 2018 to 58% in 2023 [7][20][32]. Future Outlook - The global smart toilet market is expected to grow at a CAGR of 11.4% from 2022 to 2028, with significant opportunities in the U.S. and Middle Eastern markets. The company aims to expand its international presence through both domestic traders and direct engagement with overseas clients [12][34]. R&D and Innovation - The company invests approximately 4% of its revenue in R&D, holding 1,834 patents, including 135 invention patents. It has been recognized as one of the few national-level industrial design centers in the bathroom industry, indicating its strong manufacturing and innovation capabilities [9][28]. Market Position - The company has established a strong market position with a focus on smart toilet products, which are expected to drive future growth. The competitive landscape is shifting towards domestic brands, with increasing market share for local players as they enhance product quality and reduce prices compared to foreign brands [8][61].