上市捷报丨沙利文助力杭州巨星科技股份有限公司成功发行GDR并在瑞交所上市(GSI.SW)

Hangzhou Giant Technology Co., Ltd. (Stock Code: GSI.SW) successfully issued Global Depositary Receipts (GDRs) and were officially listed on the Swiss Stock Exchange on November 15, 2022. The company is a global leader in hand tools, having been deeply involved in the industry for decades and consolidating its leading market position through continuous and efficient product research and development and innovation. Frost & Sullivan (hereinafter referred to as "Frost & Sullivan") provided exclusive industry advisory services for Giant Technology's listing on the Swiss Stock Exchange, and we hereby warmly congratulate them on their successful listing.

Hangzhou Giant Technology Co., Ltd. (hereinafter referred to as "Giant Technology") was officially listed on the Swiss Stock Exchange at 15 November 2022, Swiss time, with the final issue price of GDRs being $13.08 per share. The number of GDRs issued this time was 11,812,700 shares, representing 59,063,500 underlying A-share stocks, raising approximately $155 million.

During the process of listing on the Swiss Stock Exchange, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, global coordinators, and other professional intermediary institutions in completing the writing of relevant parts of the prospectus (such as overview, key competitive advantages and strategies, industry and market overview, business, and other important sections), assisting the issuer in communicating with the Swiss Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the company in completing various feedback requests from the Swiss Stock Exchange regarding industry issues.

Investment Highlights

The company is a global leader in tool enterprises;
The company's product portfolio mainly covers hand tools, storage cabinets, power tools, and laser measuring tools, among others, owning multiple world-class century-old tool brands such as ARROW, PONY & JORGENSEN, Goldblatt, BeA, Shop-Vac, and SK;
The company has established a strong global sales network, including various sales and distribution channels tailored to each market and product segment;
The company has strong manufacturing and R&D capabilities: as of June 30, 2022, the company operates 21 production bases globally, including 10 production bases in China, as well as 11 overseas production bases in the United States, Germany, Switzerland, Italy, Czech Republic, Thailand, Vietnam, and Cambodia.

According to a Frost & Sullivan report:

In terms of revenue from the hand tool and tool storage sector in 2021, the company is the world's second-largest supplier of hand tools and tool storage, with a market share of 4.9%;
In terms of revenue from the hand tool sector in 2021, the company is the world's second-largest hand tool supplier, occupying a market share of 5.1% in the global hand tool market.

Global Tool Market Analysis

The global tool market can be divided into the following segments: hand tools, tool storage, power tools, and OPE. From 2017 to 2021, the global tool market grew steadily, with the market size increasing from $778 billion in 2017 to $998 billion in 2021, a compound annual growth rate of 6.4%. Driven by consumption upgrading, the rise of DIY culture, and the expansion of online sales channels, the global hand tool market and the global tool storage market have recently achieved stable growth and are expected to reach $244 billion and $95 billion respectively by 2026, with compound annual growth rates of 3.9% and 3.1% from 2022 to 2026.

The global power tool market can be divided into two main sectors based on power source: electric tools and other power tools. From 2017 to 2021, the global power tool market grew steadily, with the market size increasing from $337 billion to $441 billion, a compound annual growth rate of 7.0%. With continuous progress in technology and product design, such as the rapid development of lithium-ion battery system technology, it is estimated that the global power tool market size will increase from $477 billion in 2022 to $607 billion in 2026, a compound annual growth rate of 6.2%.

Source: Frost & Sullivan Report

Analysis of the Competitive Landscape of the Global Hand Tool and Tool Storage Market

The Chinese hand tool and tool storage market is relatively fragmented. In 2021, the top five companies accounted for approximately 24.4% of the market share in terms of revenue from the hand tool and tool storage sector. Leveraging competitive advantages such as global supply chain layout, full-channel distribution, and strong R&D capabilities, the company was the second-largest tool supplier in the global hand tool and tool storage market in 2021, with a market share of about 4.9%. In terms of revenue from the hand tool sector, the company was the second-largest hand tool supplier in the world in 2021, with a market share of about 5.1%. Through organic growth and carefully planned mergers and acquisitions strategies, the company continuously enhances its competitiveness in the global hand tool and tool storage market.

Source: Frost & Sullivan Report

Key Market Drivers of the Global Tool Market

Continuous Expansion of Sales Channels

Thanks to the development of the mobile internet industry, global tool suppliers continue to invest in technology research and development to acquire and retain customers, while establishing online sales channels to meet the purchasing preferences of different end customers. In recent years, emerging sales channels including e-commerce channels and other online sales platforms have risen rapidly. In addition, the spread of the pandemic has also promoted the development of online sales channels because consumers tend to reduce their offline shopping frequency. With the increasing convenience and popularity of online tool procurement, more and more home and DIY end-users will accept and increase online purchases.

Home Consumption Upgrading

With the continuous improvement of income levels in people around the world, consumers' demand for products that help improve their quality of life and pursue a perfect quality of life is increasing. With the increase in household consumption capacity and demand for household tools, consumers are more willing to pay a premium for high-quality tool products. In addition, with the development of technology and manufacturing capabilities by tool manufacturers, more and more household consumers are inclined to purchase industrial-grade tools, which also helps promote the development of the tool market.

Frost & Sullivan has rich research experience in the industrial automation and mechatronics industries, assisting well-known enterprises to successfully list on the capital market. Successful listing cases include: Quanfeng Holdings (2285.HK), Sunward International (2155.HK), Wenling Zhejiang Tool & Die (1379.HK), Haojiang Electromechanical (1408.HK), China Shuta (8623.HK), Haina Intelligent (1645.HK), Aoda Holdings (9929.HK), Mika Pipe Industry (1553.HK), Yonglianfeng (8617.HK), China Pengfei (3348.HK), Hengxin Feng Holdings (1920.HK), Kangtelong (1912.HK), Weiliang Holdings (8612.HK), Kun Group (924.HK), Pipeline Engineering (1865.HK), Cangnan Instrument (1743.HK), Kangli International (6890.HK), Hengyi Holdings (1894.HK), Aoshi Global (1540.HK), Hengda Technology (1725.HK), China Tower (0788.HK), Junmao Technology (8490.HK), Quanda Electric (1750.HK), ZC Tech Gp (8511.HK), Guangli Technology (6036.HK), China Foton (8506.HK), Jingya Printing (8391.HK), Global Printing (8448.HK), Junqiu Holdings (8485.HK), Wanli Printing (8385.HK), Xinxing Printing (1975.HK), Jinshang Precision (1651.HK), Jingyang Group (8257.HK), Hongteng Technology (6088.HK), Xingming Holdings (8425.HK), Yisheng (1656.HK), Yurong Group (1536.HK), Yungeng Electromechanical (1608.HK), Yabigang Lease (1496.HK), China Telecom (3969.HK), Wuxi Shenglida (1289.HK), Jinbangda (3315.HK), Honglin Technology (1087.HK), Sijing Power Electronics (580.HK), Xiangyu Dredging (871.HK), Mingsheng Heavy Industry (1101.HK), China Automation (569.HK)

Recommended Reading

01. Frost & Sullivan helps Quanfeng Holdings successfully list in Hong Kong (2285.HK)

02. Frost & Sullivan helps Sunward International successfully list in Hong Kong (2155.HK)

03. Frost & Sullivan helps Wenling Tool & Die successfully list in Hong Kong (1379.HK)

04. Frost & Sullivan helps Haojiang Electromechanical successfully list in Hong Kong (1408.HK)

05. Frost & Sullivan helps Shuta International successfully list in Hong Kong (8623.HK)

06. Frost & Sullivan helps Haina Equipment successfully list in Hong Kong (1645.HK)

07. Frost & Sullivan helps Aoda Holdings successfully list in Hong Kong (9929.HK)

08. Frost & Sullivan helps Mika Pipe Industry successfully list in Hong Kong (1553.HK)

09. Frost & Sullivan helps Pengfei Group successfully list in Hong Kong (3348.HK)

10. Frost & Sullivan helps Yonglianfeng successfully list in Hong Kong (8617.HK)

11. Frost & Sullivan helps Hengxin Feng Holdings successfully list in Hong Kong (1920.HK)