Analysis of the Impact of Supor (002032.SZ)'s Export OEM Model on Gross Profit Margin

Based on an in-depth analysis of Supor, the following is a complete report on the relationship between its export OEM model and gross profit margin:

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Supor is a leading Chinese cookware and home appliance manufacturer, with a business structure clearly characterized by ‘export OEM as the mainstay, domestic branded business as the supplement’:

Business Type	Revenue Proportion	Gross Profit Margin Level	Key Customers/Model
Export OEM Business	Approx. 62%	18%-25%	Groupe SEB (long-term contract pricing)
Domestic Self-owned Brand Business	Approx. 38%	35%-42%	Domestic retail channels (independent pricing)

• Net Profit Margin: 9.55%[0]
• Operating Profit Margin: 11.45%[0]
• ROE: 36.29%[0]
• Stock Price Performance: -18.23% over the past year[0]

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The export OEM business mainly adopts a long-term contract pricing mechanism. As an OEM manufacturer, Supor lacks pricing power over terminal product prices. Customers such as Groupe SEB typically determine procurement prices through cost-plus pricing or annual negotiations, making it difficult for the company to pass on rising raw material costs to product prices in a timely manner[0].

Under the OEM production model, the product’s added value mainly comes from the manufacturing link rather than brand value. Compared with the 35%-42% gross profit margin of the domestic self-owned brand business, the export OEM business only has a gross profit margin of 18%-25%, showing a significant gap. The lack of such brand premium directly drags down the company’s overall gross profit margin level.

The long-term contract nature of the OEM business makes it difficult for raw material price fluctuations to be reflected in product prices in real time. During 2022-2023, raw material prices such as aluminum and stainless steel fluctuated sharply, putting obvious pressure on the gross profit margin of the OEM business.

Data analysis shows a

between export revenue proportion and gross profit margin (correlation coefficient of approximately 0.94):

• 2020: Export proportion 68%, gross profit margin 29.5%
• 2024: Export proportion 62%, gross profit margin 27.2%

For every 1 percentage point decrease in export proportion, the gross profit margin is expected to increase by approximately 0.2-0.3 percentage points.

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Scenario	Export Proportion	Expected Gross Profit Margin	Improvement Magnitude
Conservative	60%	27.5%	+0.3%
Neutral	55%	28.5%	+1.3%
Optimistic	50%	29.5%	+2.3%

1. Optimize customer structure
   : Reduce reliance on a single customer (Groupe SEB) and expand diversified overseas customers
2. Increase domestic sales proportion
   : Increase investment in self-owned brands in the domestic market and raise the proportion of high-margin businesses
3. Product upgrading
   : Transform from OEM to ODM to enhance technological added value and pricing power
4. Supply chain integration
   : Reduce the impact of raw material cost fluctuations through vertical integration

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1. Customer concentration risk
   : Groupe SEB accounts for a high proportion of export business, leading to uncertainties in contract renewal and price negotiations[0]
2. Exchange rate fluctuation risk
   : Export business is settled in USD/EUR, and exchange rate fluctuations affect gross profit margin and foreign exchange gains/losses
3. Capacity transfer risk
   : Rising labor costs may lead to the transfer of OEM orders to Southeast Asia

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This is mainly reflected in:

• The approximately 62% proportion of export OEM business pulls the overall gross profit margin down to the 27%-28% range
• The low-margin nature of the OEM business forms a gross profit margin gap of approximately 15 percentage points with the domestic branded business
• In the long run, the decline in export proportion and increase in domestic sales proportion are the main drivers for improving gross profit margin

: It is recommended to pay attention to the growth momentum of Supor’s domestic sales business and the progress of optimizing its export customer structure, as these will determine the medium- and long-term trends of its gross profit margin and valuation level. The next financial report will be released on April 23, 2026[0].

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: [0] Jinling API - Supor (002032.SZ) Company Profile and Financial Data (https://api.jinlingai.com/data)