Photo/Stanley Website

A thermal cup brand from North America, Stanley, has become a sensation on social media platforms abroad  and hot sales of this cup have also driven the growth of the Chinese listed company that makes it for Stanley.

On January 17, Jiayi Shares (SZ301004, stock price 53.77 yuan, market value 5.6 billion yuan), which manufactures cups for Stanley, released its 2023 earnings forecast. It expects its net profit attributable to shareholders of the listed company to be 450 million to 475 million yuan, an increase of 65.5% to 74.7% over the same period last year. 

China is the world’s largest exporter of stainless steel vacuum thermal cups. Tianfeng Securities pointed out that the export of thermal cups was booming in 2023, and the products were characterized by customized IP. In terms of production capacity deployment, Jiayi Shares’ production capacity will further expand in the future. However, how long will the boom of explosive product manufacturing last?

Stanley is a household name today. Founded over 100 years ago, Stanley initially catered to a niche market of outdoor enthusiasts and blue-collar workers with its line of sturdy, functional vacuum flasks.

In 2016, Stanley launched the Quencher, a water bottle designed for on-the-go convenience and style. However, the product failed to make a splash initially, and Stanley was forced to discontinue it in 2019 due to poor sales.

But then, something unexpected happened. In 2020, a popular online shopping platform that caters to female consumers began promoting the Quencher. The product quickly caught on, becoming one of the website's top sellers.

The Quencher's popularity continued to snowball in 2023, when a viral video on social media showed the water bottle surviving a car fire with its contents still intact. The video garnered over 80 million views in just four days, and Stanley's CEO quickly responded by offering the woman a new water bottle and a car.

In January 2024, Stanley collaborated with Starbucks to launch a limited-edition Valentine's Day Quencher in pink. The product was so popular that it triggered a frenzy at Target stores across the US, with people lining up as early as 2 am to get their hands on one.

Stanley's remarkable rise from humble beginnings to global phenomenon is a testament to the power of social media, influencer marketing, and the ever-evolving consumer landscape. The brand's success also highlights the importance of staying true to its core values while adapting to changing market trends.

Stanley’s cups are in high demand, and they also boost the performance of their contract manufacturer. It is understood that Stanley is the main customer of Jia Yi, a domestic listed company that produces water cups for them. On January 25, on an investor interaction platform, in response to investor questions, Jia Yi said that the company has had a long-term cooperation with Stanley and maintained a good and stable relationship.

On January 17, Jia Yi disclosed its 2023 performance forecast, expecting a net profit attributable to shareholders of the listed company of 450 million to 475 million yuan, an increase of 65.5% to 74.7% over the same period last year. Jia Yi said that the reasons for the performance growth include the continuous improvement of the terminal market, the saturation of the company’s orders, and the significant scale efficiency.

On January 22, during an investor survey, Chen Diansheng, assistant to the chairman of Jiayi Shares, revealed that he was optimistic about the orders for 2024. In the first half of 2023, the US dollar interest rate hike caused the US thermal cup companies to be cautious about sales and in the stage of destocking. In the second half of 2023, the interest rate hike slowed down and there was an expectation of a rate cut in 2024, and downstream customers became more optimistic about 2024 and entered a restocking state. In the first half of 2023, China’s exports of thermal cups to the United States fell year-on-year, and began to grow in the second half of 2023. US downstream customers maintained a relatively optimistic attitude towards the development of 2024 and beyond.

It is understood that Jiayi Shares is currently laying out capacity expansion, including a project to produce 13.5 million stainless steel vacuum thermal cups per year in Vietnam. In the investor survey on January 22, Jiayi Shares revealed: “Vietnam is our first time going overseas. At present, the main body of the factory building has been capped, and other constructions are still in progress. The specific time of shipment is not certain.”

It is leanred that Jia Yi is currently laying out capacity expansion, including a project to produce 13.5 million stainless steel vacuum thermos cups per year in Vietnam. At the investor research on January 22, Jia Yi revealed: “Vietnam is our first time going overseas. The main body of the factory has been capped, and the others are still under construction. The specific time of shipment is not certain.