The market share of Greatstar Technology increased by 1.1 billion yuan in half a year, and the global M&A layout assets increased by more than 20 times in 14 years

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Shen Yourong

The global market is picking up, and Greatstar Technology (002444. SZ) achieved strong growth in operating performance.

On the evening of June 28, Superstar Technology released a semi-annual performance forecast, in the first half of this year, the company is expected to achieve a net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit") of about 1.1 billion yuan, a year-on-year increase of about 30%.

The company explained that it has launched a large number of new products, significantly increased its market share, and met the recovery of end market demand, and the company's operating performance has increased significantly.

Greatstar Technology landed on the A-share market in 2010, and the company continues to develop its main business around the global tool consumption field, carry out R&D innovation and channel expansion. At present, the company has 21 manufacturing bases around the world, and has global procurement and global manufacturing capabilities. By the end of 2023, the company's total assets will be close to 20 billion yuan, an increase of more than 20 times from the end of 2009.

At present, Greatstar Technology has firmly established a leading position in the domestic hand tool industry, with an annual R&D investment of more than 300 million yuan, and its technical level ranks in the forefront of the industry.

The half-year profit of 1.1 billion continued to grow rapidly

The operation of Superstar Technology continued to improve, and its performance continued to grow rapidly.

According to the latest performance forecast released by Greatstar Technology, in the first half of this year, the company is expected to achieve a net profit of about 1.091 billion yuan - 1.178 billion yuan, a year-on-year increase of 25% - 35%; The net profit after deducting non-recurring gains and losses (hereinafter referred to as "non-net profit") is expected to be 1.133 billion yuan to 1.224 billion yuan, a year-on-year increase of 25% to 35%.

If the median of the forecast is taken, the net profit and non-net profit deducted in the first half of this year were about 1.1 billion yuan and 1.160 billion yuan respectively, a year-on-year increase of about 30%.

In the first quarter of this year, the company's operating income and net profit were 3.306 billion yuan and 413 million yuan respectively, a year-on-year increase of 29.38% and 36.70%. According to the semi-annual performance forecast, in the second quarter, the company's net profit ranged from 678 million yuan to 765 million yuan, a year-on-year increase of 18.95%-34.21%. The data shows that the net profit in the second quarter increased significantly year-on-year and quarter-on-quarter.

In response to the excellent business performance in the first half of this year, Greatstar Technology explained that in the first half of this year, the company launched a large number of new products, including power tools, special cabinets, etc., which significantly increased the terminal market share. At the same time, as inflation in Europe and the United States eases, the demand for tools in the end market has recovered. In addition, downstream customers basically ended active destocking, and the overall order recovery matched the end market demand.

Greatstar Technology also said that in the second quarter, the company's operating income continued the growth trend of the first quarter year-on-year, and with the continuous growth of the company's revenue scale and the commissioning of the Southeast Asian manufacturing base, the company's profitability has increased significantly.

In July 2010, Greatstar Technology landed on the A-share market, and since its listing, although the company's operating performance has fluctuated occasionally, the overall growth trend has remained unchanged.

In 2010, the first year of listing, the company's operating income and net profit were 1.882 billion yuan and 268 million yuan respectively, and by 2021, the operating income exceeded 10 billion yuan for the first time, reaching 10.920 billion yuan, and the net profit exceeded 1 billion yuan in 2020, reaching 1.350 billion yuan.

In the four years from 2020 to 2023, the company's operating income was 8.544 billion yuan, 10.920 billion yuan, 12.610 billion yuan, and 10.930 billion yuan respectively, and the net profit was 1.350 billion yuan, 1.270 billion yuan, 1.420 billion yuan, and 1.692 billion yuan.

Wind data shows that since its listing, the cumulative net profit realized by Greatstar Technology is 11.146 billion yuan (excluding the second quarter of 2024).

Operating cash flow related to net profit, Greatstar Technology continued to have a net inflow. From 2020 to 2023, the company's operating cash flow will be 771 million yuan, 19 million yuan, 1.632 billion yuan, and 2.126 billion yuan respectively, and 168 million yuan in the first quarter of this year.

Innovation-driven annual production of 1,828 new products

The performance of Greatstar Technology has maintained a continuous growth trend, which is related to its advantages in innovation, brand and channels.

In the first half of this year, one of the important reasons for the rapid growth of superstar technology's operating performance is that the company launched new products, which significantly increased the company's market share.

Greatstar Technology is mainly engaged in the research and development, production and sales of hand tools, hand-held power tools and other tool hardware products, with innovative advantages. The company said that innovation has always been the soul of its development, and category expansion has always been the core driving force of its development. The company has a senior professional tool products and non-tool consumer goods research and development team, has always been committed to the development and innovation of new products, adhering to the concept that details determine success or failure, improving the functionality and added value of products, and ensuring the company's long-term core competitiveness.

According to the disclosure, in 2023, Greatstar Technology will design 1,828 new products, with more than 200 new patent applications and patent authorizations.

R&D investment related to innovation, from 2020 to 2023, the investment of Greatstar Technology will be 245 million yuan, 310 million yuan, 319 million yuan, and 323 million yuan respectively. In 2023, the company's operating income will decrease by 23.32% year-on-year, and R&D investment will continue to grow.

By the end of 2023, the number of R&D personnel in the company is 1,105, accounting for 10.23% of the total number of employees.

The main products of Greatstar Technology are durable consumer goods for families and industrial-grade products for professionals, and the brand is the most effective guarantee for the company to provide products and services to consumers for a long time. In addition to building its own brand, the company is also committed to the acquisition of international leading brands. IN 2023, THE COMPANY SIGNED A CONTRACT TO ACQUIRE THE SWISS TESA AND BRITISH SCRUFFS BRANDS.

The channel advantages of superstar technology are also more obvious. The company has become the largest supplier of tools and lockers for many large supermarket chains such as HOME DEPOT, WALMART, LOWES, Kingfisher in Europe, and CTC in Canada. At present, there are more than 20,000 large-scale hardware, building materials, auto parts and other supermarket chains in the world, which also sell one of the various products of Greatstar Technology.

Greatstar Technology is committed to globalization, through global mergers and acquisitions and other ways, the company has improved the global supply chain management system, and has established good cooperative relations with thousands of suppliers around the world. Relying on the perfect warehousing, logistics and distribution system in China, the United States and Europe, as well as 21 manufacturing bases around the world, Greatstar Technology has achieved global procurement, global manufacturing, and global distribution.

According to Greatstar Technology, the company is accelerating to become a global resource allocation company integrating local services in Europe and the United States, industrial chain manufacturing in Asia and management research and development in China.

The Yangtze River Business Daily reporter found that after the listing, Superstar Technology made frequent acquisitions around the world, such as in 2017 and 2018, the company successively spent 125 million yuan and 185 million Swiss francs to acquire 100% of the shares of Arrow and 100% of Lista. In 2018, the company cooperated with Hangcha Group and Tongcheng New Materials to acquire Zhongce Rubber, the largest rubber processing enterprise in China, of which the company invested 975 million yuan.

The asset scale of Greatstar Technology has expanded rapidly. As of the end of 2023, the company's total assets will be 19.684 billion yuan, an increase of more than 20 times from the end of 2009.

Through mergers and acquisitions and other channels, Greatstar Technology has become the largest leading hand tool company in Asia and the third in the world.