New stock preview | Relying on exports of baby monitors to bring in 300 million a year, can JuZhi Technology go far with a single channel?

In the past few years, the global baby monitor market has made significant progress due to the increasing demand for baby safety products, rising awareness of baby health, and advances in smart technology. Data shows that by 2023, global baby monitor sales are expected to reach 18.7 million units, and by 2028, they are expected to reach 27.6 million units. In 2023, the retail sales value of this market is estimated to be approximately $1.31 billion, and by 2028, it is expected to expand to $1.827 billion. Currently, North America is the market with the highest acceptance of baby monitors. It is reported that in 2023, sales of baby monitors in the North American market reached about 7.5 million units, accounting for 40% of the global market share. Furthermore, from 2019 to 2023, the compound annual growth rate of the baby monitor market in North America was 7.6%, higher than the global growth rate of 7% during the same period. Therefore, it can be said that the baby monitor market is essentially dominated by North America. Recently, JuZhi Technology Innovation Co., Ltd., a leading company in the baby monitor industry, submitted an application to the Hong Kong Stock Exchange for listing. The prospectus shows that the brand name under JuZhi Technology is "HelloBaby", meaning a warm welcome to the arrival of babies, bringing joy and happiness to parents. As early as 2016, the company engaged in cross-border e-commerce product sales through third-party e-commerce platforms. After years of development, JuZhi Technology has become the third largest baby monitor manufacturer in China to export to the United States. With regards to financial performance, JuZhi Technology has experienced significant growth in recent years. From 2022 to September 2024, the company's revenue was RMB 190 million, RMB 348 million, and RMB 349 million, respectively. The majority of JuZhi Technology's revenue comes from baby monitor products, accounting for 91.5%, 95.4%, and 96.8% of total revenue during the periods mentioned. Additionally, a small portion of revenue comes from household telecommunication products, instant children's cameras, baby monitor accessories and components, among other products. As revenue increased, JuZhi Technology's profit indicators also rose. From 2022 to September 2024, the company's gross profits were RMB 97.6 million, RMB 159 million, and RMB 183 million, respectively. However, the gross profit margin fluctuated significantly during this time, reaching 51.2%, 45.8%, and 52.5%, respectively. Regarding the abnormal decrease in the comprehensive gross profit margin in 2023, JuZhi Technology attributed this to offering discounts on certain baby monitor models to gain more market share. Sales data confirmed this, as in 2023, JuZhi Technology had a sales volume of 858,000 units, more than double the previous year, but the average selling price of the products significantly decreased from RMB 433.6 to RMB 386.8. However, past glory obviously does not mean that future development will be smooth sailing. Especially for JuZhi Technology, which aims to expand to a broader stage, many of the company's shortcomings may be infinitely magnified under the scrutiny of investors' "magnifying glass". Next, whether JuZhi Technology can tear off the label of a single business channel, whether the gross profit margin will continue to rise along with revenue, and whether the company can fulfill its capital dreams in Hong Kong, GMTEight will continue to pay attention.Bonjour! Comment a va? Comment puis-je vous aider aujourd'hui?