Ruiqi Tools: Doing a leading professional power tool operator

Last week (September 6-September 12), Qiqi Group (300126) announced that it intends to issue 2105 shares of new shares. The company is mainly engaged in the R&D, production, sales and service of professional electric tools. It is the only high-tech enterprise in China that possesses three national honors of “China Top Brand Product”, “National Mianjian Product” and “China Excellent Private Technology Enterprise”. The enterprise has now become one of the most competitive professional power tool manufacturers in China. It is reported that the company has successfully developed high-tech high-value-added high-power professional hammers and electric hammers, which will soon be put into mass production.

Replace imported products with high cost performance

From the perspective of the overall product system, power tools can be roughly divided into three levels: industrial level, professional level and DIY general level. Ruiqi is mainly engaged in the R&D, production, sales, and service of professional-grade power tools of its own brand. It is a domestically-funded power tool company that has successfully developed professional power tools and realized industrialization. It has independent technology research and development capabilities and complete manufacturing capabilities. , system integration capabilities and marketing networks throughout the country have now grown to become a few leading domestic power tool brands that can replace imported similar products.

At present, under the macroeconomic environment of stable economic development in China, the market demand for professional power tools is huge, but in the global market of professional power tools, large multinational companies still occupy a high position. The multinational brands mainly include large multinational companies such as Bosch, Makita and Black & Decker.

In spite of this, in recent years, the share of domestic companies in the power tool market has been increasing year by year. The market share of Ruiqi in 2008 has risen to 6.75%, making it the fastest growing company in the domestic market. The share of the four major foreign-funded enterprises in the domestic professional power tool market dropped from 33.04% in 2006 to 28.25% in 2008.

From the perspective of the development history of the entire professional power tool brand, the foreign brands' market is constantly eroded by domestic enterprises. As domestic brands are closer to users than foreign brands, and they are more aware of market demands, etc., the market share of foreign brands is in a process of declining. The decline in market share has been difficult to reverse. Ruiqi shares continuously replace its imported counterparts with its high cost performance ratio and has strong pricing power in the domestic market.

R&D Innovation Office Leading Level

The leading R&D platform, advanced manufacturing process and system integration advantages established by R&G have been the backing of the company's sustainable development; at the same time, the stable and high-coverage marketing network formed by the company has become a guarantee for the growth of the company's performance. At present, the main products of Ruiqi Group include 24 major series of angle grinders, steel machines, electric drills, electric hammers, stone cutting machines, jig saws, electric grinders and electric pickets, and hundreds of types and sizes. Can be divided into sanding, metal cutting, woodworking, construction roads and other series.

As a leading manufacturer of professional power tools, Ruiqi Group has mastered advanced manufacturing processes, and all its components have reached industry leading levels. Such as the company's lean motor speed of 30000-40000 rev / min, unit weight output of 450W / kg, ranking the industry leading level. Some of the company's models of angle grinders and cutting machine products have been recognized as "Shanghai High-Tech Achievement Transformation Project" and "Shanghai Key New Products", and won the reputation of "grinding experts" and attracted worldwide reputation. ODM technical cooperation of power tool manufacturers.

At present, Ruiqi shares more than 300 local influential professional power tool distributors and more than 20 overseas distributors in China, forming a stable and efficient distribution network with high coverage.

Policy support market has broad prospects

Professional-grade power tools belong to the advanced equipment manufacturing industry. It is widely used in drilling, cutting, grinding and other processing links in advanced manufacturing industries. In the process of upgrading the manufacturing industry, with the introduction of advanced manufacturing processes, the renewal of advanced manufacturing technologies, and the country's efforts to foster and develop advanced manufacturing, the future of professional power tools is very broad.

According to industry analysts, it is estimated that the global power tool market capacity will exceed 110 billion yuan in 2010, and China's professional-grade power tool market and accessory market capacity will reach 13 billion yuan. At the same time, in the domestic market, foreign brand products will gradually be high quality in China. Replaced by high-end products of the enterprise, the market share of domestic brands has been increasing year by year, which has huge room for growth.

From 2005 till now, the average annual compound growth rate of Ruiqi's net profit exceeded 218%. In 2009, benefiting from the growth in demand of the downstream industry and the company’s good brand image, Ruiqi’s operating income and net profit maintained sustained and rapid growth. The audited net profit for the first half of 2010 increased by more than 70% year-on-year, and it is expected to maintain rapid growth in the next three years.

Raise funds to solve capital bottlenecks

Ruiqi Co., Ltd.'s current investment funds will be used for professional power tool industrialization projects, expansion and technological transformation projects and R & D center projects. Among them, the professional electric tool industrialization project mainly produces steel machines, aluminum machines and lithium charging tools. The project has a production capacity of 1.08 million units; the expansion of professional electric tools and technological transformation projects mainly produce sanding, construction roads and carpentry. The power tools will have an additional capacity of 760,000 units after the project reaches production capacity. The professional power tool research and development center will improve the company's R&D capabilities and the level of testing and testing, and enhance the company's product technology content and competitiveness.

It is understood that Ruiqi Group is planning to launch new high-value-added products, including the expected launch of high-power hammers and lithium-electric power tools in the second half of this year, and the company’s 2011 electric power transmission products, which will surely bring more benefits to the company. The broad space for development has enabled the company to become an internationally leading professional power tool operator.