The magical "Feike Electric" is crazy about dividends, and one person has an exclusive listed company!

Feike Electric is a very interesting and amazing company, and it is the only company that I can't figure out why it should go public.

When the company went public in 2016, it issued 43.6 million shares, accounting for 10.01% of the total share capital.

According to the regulations, if the total share capital is more than 400 million, the issuance amount must reach more than 10% of the total share capital.

The listing has raised more than 700 million funds, does the company really lack this money?

From the first day of its establishment, until now, the company has not borrowed a penny, except for the fundraising on the listing, it has never raised a penny.

According to the prospectus, the purpose of listing to raise funds is to expand production, which is obviously an excuse.

The company can borrow money, with the qualifications of Feike, it must be the bank begging Feike to borrow, the interest must be very low, you must know that the company's return on investment has not been less than 20% in the past ten years.

Therefore, in addition to enhancing the brand effect, there really is no substantial benefit to the listing.

Let's talk about this amazing company today.

1. Company

Everyone should know that Feike is a razor, many male compatriots have used it, after all, it is the leader in the vertical field of domestic razors, and it has been vigorously promoting hair dryers in the past two years.

The founder of Feike is called "Li Chengteng", who has been a razor for a lifetime, and is also one of the models of self-made.

Li Chengteng was born in Wenzhou, Zhejiang Province in 1972 and was admitted to university in 1992, but his family really had no money, so he had to drop out of school to work.

In 1995, he entered the razor industry, doing circuit board soldering work, very diligent, because every board soldered, there was a dime, only 4 hours a day, working hard, in that era you could get a salary of about 1,000 a month, which was also very good.

Later, he was promoted to supervisor, but from that time on, the razor was becoming more and more competitive due to its lack of technical content, and the shipment price soon halved.

Li Chengteng felt that it was not a problem to go on like this, so he suggested that the boss should upgrade the brand and not participate in the price war.

This way of thinking was still relatively fashionable at that time, because most of the people who started their businesses in the eighties and nineties did not have brand thinking, and later became bigger and stronger, and introduced advanced management systems and professional managers, and many enterprises began to pay attention to their own brands.

Obviously, Li Chengteng is a little ahead of his thinking, and he has not been recognized by the boss, because he still has a little meager profit from following the crowd, and once he can't do his own brand, it will be a loss.

Looking at Feike from today's rearview mirror, Li Chengteng's idea is undoubtedly correct, which is also the core reason for Feike's success.

However, at that time, Li Chengteng's foundation was still too thin, and after leaving due to disagreement with the concept, he did not start a business immediately, but did a razor accessories business.

It wasn't until 1999 that Li Chengteng accidentally saw a high-end shaver from Philips, which was priced at more than 2,000 yuan.

If the purchasing power is calculated according to the wage level, it is equivalent to more than 20,000 now.

At that time, the shipment price of the low-end razor was only a few yuan, and the retail price was only a dozen yuan.

So this year, the company officially started its business and established Feike Electric, which is said to mean "relying on science and technology, always flying forward".

Li Chengteng knows that he can't roll up low-end manufacturers, and he can't compete with high-end enterprises, but between a dozen yuan and hundreds of thousands of yuan, there is a mid-end market of about 100 yuan, which is blank.

The positioning of foreign giants is high-end, and what they earn is a high premium, so it is impossible to reduce prices and damage brand power for no reason.

And low-end manufacturers do not have the awareness or ability to upgrade, which gives Li Chengteng a good opportunity.

Of course, to sell the price more expensive than ordinary brands, it means that the overall quality must be better.

In order to achieve this, Li Chengteng spent more than half a year, constantly modifying the design plan, from spare parts to appearance, all of which have been greatly improved.

The effect is really good, although the product polishing time is a little longer, but it is very popular after the market, and it is always the right way to do a good job of the product with heart.

Li Chengteng, who tasted the sweetness, decided to push it up again and bought CCTV's prime-time advertising space, which was very expensive, but it did push the brand "Feike" to a new height.

I still remember the advertising slogan at that time: "Strong power, flying over the new realm of science and technology", and I recall a strong sense of age.

At that time, CCTV advertising was still very authoritative, and Feike's popularity seemed to spread all over the country overnight.

It is inevitable that the sales will increase significantly, but Li Chengteng is still very sober, he knows that this is only the first step, and it is far from enough to establish a real brand effect.

In 2002, he made an important decision to gradually withdraw from the wholesale model and began to open specialty stores in large shopping malls across the country, which is also the routine of foreign giants.

The effect is naturally good, in fact, any high-premium product satisfies people's vanity, and it is now.

The so-called brand power is to let everyone know that my things are more expensive, you can not buy them, but you also have to know, because only you know, the person who buys is valuable.

Feike opened the store in the shopping mall, which is not only a face-saving project, but also let more people know that Feike's razor is not the kind that costs more than ten yuan on the roadside stalls.

10 times the price does not correspond to 10 times the quality, this is not important, of course, the quality and feel must be a little better than the ordinary.

The next few years were a familiar and regular development process, with better and better sales, richer and richer companies, and non-stop acquisitions of competitors in order to scale up quickly.

By 2007, the shaver industry can be said to have completed a major reshuffle, a large number of small and medium-sized enterprises were eliminated, and Feike became a domestic industry giant.

But in terms of brand power, Feike is still not as good as foreign giants, at least one point, people are "imported".

For a long period of time, many people in China will have the concept of "what is imported is good", and many people still have it.

For this pedantic concept, Li Chengteng has no good way to break his head.

It may be that in this helplessness, I thought of going public, because listed companies are better than non-listed companies, which is also a concept of many people before.

As a result, in 2016, Feike was successfully listed on the Shanghai Stock Exchange, and the equity ratio after listing has not changed until now.

This is the annual report data for 2023, Shanghai Feike Investment is "almost" owned by Li Chengteng alone, plus 9% of the direct shareholding, it can be understood that Li Chengteng alone holds 89.99% of the equity of Feike Electric.

Therefore, the market says that Feike is "a one-person listed company", which is indeed reasonable.

With such a high shareholding ratio of the founder, among all listed companies, there is only Feike this amazing company.

2. Business

Feike's main business has always been razors, and the growth of hair dryers has been relatively fast in the past two years, in addition to many small electrical appliances that "shear", the performance contribution is very small.

I see that the annual report for 2023 does not announce the performance of specific products, only divided into protective appliances and household appliances, and it is estimated that they will not be announced in the future, and finally take a look at the specific product performance in 2022.

Note that the table above is for 2022, not 2023.

It can be seen that in addition to razors, there are also hair dryers, hair clippers, electric toothbrushes and nose hair trimmers.

Hair clippers have not grown, and the others have a relatively fast growth rate because the base is relatively small.

I estimate that Feike's 2023 annual report will adjust the description method, probably in order to continue to develop these small appliances and find the second growth curve.

After all, razors are already on such a large scale, and it is impossible to grow them significantly.

The figure above is the data for 2023, with a year-on-year increase of 11.93% in shaver production of 45.28 million, but a year-on-year increase of 3.49% in sales of 49.41 million.

The output of hair dryers was 15.18 million, a year-on-year increase of 25.23%, and the sales volume was 15.23 million, a year-on-year increase of 16.97%.

Both types of products are sold higher than production, especially razors, mainly because 9 series of new products were launched last year, which consumed a lot of inventory of old products.

For a long time, Feike's production model has been a "self-produced + outsourcing" model, high-end products are basically produced by themselves, and some low-end products are outsourced.

In 2023, no specific self-production data will be announced, but a roughly estimated percentage can be known according to the cost.

As shown in the figure above, the cost of self-production is much higher than the cost of outsourcing procurement, and the change is not large, and the pattern is basically stable.

Now the company has two major brands, "Feike" is the main brand, and "Borui" is a newly cultivated low-end brand.

All high-end products use the Feike brand, and some low-end products are passed on to Borui, of course, the company's statement is that it is a cost-effective product.

Feike's brand upgrade road has not stopped, to last year's high-end product sales accounted for 50.95%, finally more than half, Li Chengteng really wants to go to the black, the pursuit of the word "brand" for more than 20 years.

Borui also grew rapidly last year, accounting for 17.17% of sales, an increase of 8.44% over the previous year, and it seems that it is relatively smooth to undertake Feike's low-end products.

The overall performance of the home appliance market in 2023 is not bad, especially in the personal care small household appliance market, with the retail sales of shavers being 9.37 billion, a year-on-year increase of 11.2%, the retail sales of hair dryers being 9.06 billion, a year-on-year increase of 29.9%, and the retail sales of electric toothbrushes being 5.58 billion, a year-on-year increase of 4.2%.

Among them, the rapid growth of hair dryers, I think it should be the "negative ion hair dryer" that has become popular in the past two years, the simple blowing hot air to dry hair, the principle is known to everyone, it is nothing more than a motor blowing, a heating module provides heat, and the water on the hair is evaporated by the air volume with temperature, and people with strong hands-on ability can do it themselves.

Theoretically, the higher the temperature, the faster the wind speed, and the faster the evaporation.

However, the higher the temperature, the greater the damage to the hair, so there is a demand for "low-temperature and high-speed" hair dryers.

As for the negative ion hair dryer, it has only become popular in recent years, and it is very simple, just adding a negative ion generator, many people think that negative ions have the function of repairing hair, but in fact, there is no harm, of course, there is no harm.

The biggest advantage of the negative ion hair dryer is that it can neutralize the positive charge in the hair, eliminate static electricity, and make the hair smoother and smoother.

Traditional hair dryers rely on high temperature drying, which will not only bend and deform the hair, but also make the hair look frizzy due to static electricity.

Therefore, the barber shop replaced the negative ion hair dryer on a large scale, and then under the recommendation of the barber, more and more people chose to replace the hair dryer at home.

I think this should be a very important reason why the hair dryer is growing so fast, and this replacement tide is not over, at least this year can continue to grow.

The cost of Feike's hair dryer has increased so much, mainly because it is eliminating traditional hair dryers and adding high-speed hair dryers.

The company seems to have a tendency to make the hair dryer the second growth curve, because there were more advertisements last year, which I personally experienced, and I saw the advertisements of Feike hair dryers in many elevators.

3. Performance

Feike's performance in 2023 is still growing.

The revenue was 5.06 billion, a year-on-year increase of 9.35%, the net profit attributable to the parent company was 1.02 billion, a year-on-year increase of 23.9%, and the net operating cash flow was 1.3 billion, a year-on-year increase of 60.66%.

It is also normal to have this performance, not only the sales growth, but also the profitability has increased a lot in recent years.

The gross profit margin has increased for 4 consecutive years and now reaches 57.1%, and the net profit margin has increased for 2 consecutive years and now reaches 20.15%.

It is really not easy for consumer electronics to maintain such a high gross profit margin.

The main thing is that Feike now accounts for more and more high-end products, and I believe that many people also have the experience that a slightly better razor will cost hundreds of yuan.

The relatively low net profit margin is mainly due to the relatively high annual marketing expenses, which have increased for 6 consecutive years.

Last year's sales expenses were 1.477 billion, a year-on-year increase of 29.28%, and the money spent on promotion was about 50% higher than the remaining profits.

This is also the only shortcoming of Feike Electric, must rely on strong promotion to grow performance, the growth rate of marketing expenses in the past three years, much higher than the growth rate of performance.

Fortunately, the company has no expenses, last year's capital expenditure has dropped to 10 million level, anyway, there is nothing to expand, and there is a foundry to help, so the annual cash flow is much higher than the capital expenditure.

For a company with zero interest-bearing liabilities and low capital expenditures, coupled with a very simple business and a clean financial report, it can be used as a key focus object.

What's more, this kind of company is destined to have a strong willingness to pay dividends, and there is no need to reduce holdings and cash out, anyway, most of the dividends are distributed to themselves.

This cash dividend (including tax) exceeded 10 billion, sharing 98.26% of the profit, and this dividend ratio can fight with China Shenhua.

The dividend per share is 2.3 yuan, and the dividend yield is 4.55%, and the income is actually very good.

It just so happens that today is the equity registration date of Feike Electric, and the money will be divided tomorrow.

Those who held Feike Electric before today will be ready to collect money tomorrow.

It's really not only a big dividend, but also extremely fast.

Fourth, summary

There are only two ways for the future development direction of Feike Electric, one is overseas expansion, and the other is to cultivate a new fist product.

The company is also expanding overseas, but the progress is very slow, and so far there is still no improvement.

There is this trend in the new product hair dryer, but it is still very difficult to achieve the level of razor, and it is estimated that it will take a lot of time to invest in advertising.

In fact, the biggest problem may be that the equity is too concentrated, and there is no equity incentive.

The picture above shows all the executives of Feike, only Li Chengteng holds the shares, and the others are all paid.

Li Chengteng is the chairman and president, with exclusive power, Jin Wencai is the executive vice president, and the annual salary is actually not high, less than 1.75 million.

Except for Wu Liqing, vice president and financial director Hu Ying, whose annual salary exceeds one million, there should be no one else.

Such a pattern is equivalent to Feike Electric can only rely on Li Chengteng, and others do not have much motivation to develop and grow the company.

This should also be the reason why it is so difficult for Feike to go to sea and develop new products, after all, there is no capable leader.

Fortunately, Li Chengteng is not very old, only 52 years old and just past his peak, and his physical fitness is not as good as that of young people, but his heart and experience must be perfect.

The expansion rate may be a little slower, but at the same time, it will be more stable, at least it is no problem to keep the basic plate of Feike.

Such a company's ability to resist risks is actually very strong, and no matter how the market value rises or falls, it has no impact on the company.

Only 10% of the outstanding shares are indeed too few, and it is easy for the stock price to rise and fall.

Other views on Feike Electric are placed under the column article.