Globe: Garden tools exporter

6/21/2025

Globe (格力博) [301260.SZ] is engaged in production of OPE (outdoor power equipment) products with a strong exposure to US.

Typical story of the ODM/OEM supplier which founded its brand (Greenworks in 2009) and benefitted from Internet distribution to sell its products at low price.
It is a pure exporter company with geographical sales mix at US 78%/ Europe 18% in 2024 (limited market in China as very few people have its own garden). Many consumers with a garden have now seen this brand on Amazon or other online social network.

Domestic competitors:
- Ningbo Daye Garden (大叶股份) [300879.SZ],
- Chervon (泉峰) [02285.HK],
International competitors:
- Toro [TTC.N]
- TTI Techtronic Industries (创科实业) [0669.HK] with the brand Ryobi ...
- Husqvarna, Stiga, ...

Customers structure:
- Costco believed to become its largest customer in 2023 (12.3% of its sales).
- Lowe's and Amazon are company's largest customer among OPE retailers in US
- ODM business in declining trend but rebounded in 2024 to 31% from 21%.
- Toro and Stihl as a significant ODM customer.
Top 5 customers > 40% + mix own brand/ODM => volatility in their quarterly gross margin

Possible turnaround in 2025 after a disappointing IPO as sales and gross been hit on inventory management and freight/raw materials costs inflation in 2023/24 in a crowded market.
Main infrastructure advantages in post-Trump world:
- Distrbuted production base: China + Vietnam (supplying products to US) + US (for high margin products)
- Integration + automatisation of its plants,
- 50+ people in Swedish R&D center

2026 is expected to be a key breakthrough year for the lawn mowing robot business.
To be launched first in Europe in 2025 and by 2030, the company is looking to become the global leader.
=> To challenge local brands such as Ninebot (九号公司) [689009.SH] or overseas brands such as Husqvarna, Stiga ...

Cooperation with robot maker AgiBot (智元机器人) announced on 2025-05-26 for manufacturing and marekting in US robot dogs (机器狗), semi-humanoids (半人形) and humanoids. Source: IR + 投资者关系记录表. Question if it could also open the door to robotic products for garden care.