Shen Wan Hongyuan: Quanfeng Holdings (02285) has maintained a “buy” rating due to the triple resonance of channel replenishment, replacement cycle, and lithium battery penetration in '26

The Zhitong Finance App learned that Shen Wan Hongyuan released research reports that Quanfeng Holdings (02285), as the world's leading outdoor power equipment company, Quanfeng Holdings uses EGO to build a brand moat and deeply bind the Lowe's channel. It is ushering in a performance inflection point where channel replenishment and replacement cycles resonate and lithium electrification accelerates penetration, and is in the phase of bottom profit reversal and value revaluation. Maintain the company's profit forecast for the 2026-2028 fiscal year at US$1.6/1.5/170 million, +66%/-7%/+13% year-on-year, corresponding PE at 10/11/10X, maintaining a “buy” rating.

Shen Wan Hongyuan's main views are as follows:

Company Announces Joseph Galli Jr. takes over as CEO

Mr. Galli worked at Black & Decker (Black & Decker) for over 19 years and became the president of the global power tools and accessories division. In 1992, he launched the DeWalt (DeWalt) brand of heavy power tools and led the brand to globalization. Mr. Galli then joined Amazon and served as Director, President, and Chief Operating Officer from 1999 to 2000. From 2001 to 2005, he was the director and CEO of NewellRubberMaid Inc. (NewellRubberMaid Inc.). Mr. Galli joined Chuangke Industrial in 2006 as CEO of Chuangke Electric and served as CEO and Executive Director of Chuangke Industrial from February 2008 to May 2024. He is responsible for leading the management team to carry out daily operations, integrate acquisitions, and enhance the global sales potential of the Milwaukee and Ryobi brands.

Mr. Galli has deep experience in battery platform expansion, channel development and brand marketing, and is expected to bring Quanfeng to a new level of development

During his tenure at TTI, Mr. Galli built Milwaukee into one of the world's leading power tool brands while driving the continued expansion of Ryobi tools. Mr. Galli has strong leadership in team building and organizational environment. He has mature and complete systematic strategies and deep experience in battery platform expansion, channel development, brand enhancement, and internal organizational management. Succeeding as CEO of Quanfeng is expected to push Quanfeng to further achieve a global strategy. Mr. Pan Longquan, Chairman of Quanfeng, said, “His addition will inject new impetus into the bank's business and brand, and create considerable value for customers and investors. Quanfeng's future will be at the helm of this outstanding leader.”

In 2026, Quanfeng ushered in a triple resonance of channel replenishment, replacement cycle, and lithium battery penetration

① Channel providers actively replenish stocks at the end of 2025, and the trend continues; ② The last round of the real estate cycle triggered an explosive purchasing wave to respond to the 2025-2027 centralized replacement window; ③ The trend of increasing lithium battery OPE penetration rate was determined, and 26H1 launched about 130 new products, of which about 90% were lithium battery products.

The EGO brand moat is extremely deep, and the platform's ecological flywheel has been formed

① 26H1OBM's revenue share further increased to 79.6%, and the EGO brand ranked first in the North American lithium battery OPE market share in many segments (hand-propelled lawn mowers, snow plows, ride-on lawnmowers); ② The battery platform continues to expand, and the battery capacity is larger, the ecology is wider, and the moat deeper. It reflects the strong momentum of platform expansion; ③ Deeply embedded in Lowe's (Lowe's) supply chain and shelf system, it is difficult for competitors to replicate in the short term.

In addition to the basic market in North America, regional expansion and customer base expansion form the company's second medium- to long-term growth curve

① Regional expansion: The acquisition of the Benelux channel SDL in 2025, 26H1 launched the first automatic wireless lawnmower robot in Europe, with an outstanding response; ② Customer base expansion: 2B professional channel development, successful promotion of 26H1 commercial ride-on lawnmowers in the US market, which is an important milestone for commercial channels.

Risk warning: changes in US tariff policy, exchange rate fluctuations, and demand for terminals in the US market falls short of expectations.