讀後心得

Zhihui (5263) recently commented on the impact of the U.S. adjusting import tariffs on global export companies. The company stated that due to its diversified market layout and high-margin products, Zhihui has a stronger market competitiveness during the era of high tariffs. Its products have been sold to over 20 countries, and its market share in the U.S. is relatively low, accounting for only 4% in 2023 and dropping to 1% in 2024. Zhihui believes that market consumption may downgrade, but their strategy for economical products has already shown results, such as o-Ride and the newly launched 4D immersive theater. The company not only sells amusement equipment but also provides comprehensive solutions to further expand its market. Zhihui believes that although high tariffs will test the amusement equipment industry, it is still expected to grow steadily, and they will continue to advance their diversification strategy to consolidate their market leadership position.

The United States recently announced adjustments to import tariffs for certain countries, which will have an impact on businesses globally that rely on exports. The leading manufacturer of motion-sensing amusement equipment, 智崴, pointed out that the company has been committed to diversifying its global market layout for many years, coupled with a variety of products and services and the development of high gross margins, which has given it strong market competitiveness in an era of high tariffs.

智崴 stated that its motion-sensing amusement equipment products are sold in over 20 countries and regions worldwide, including Canada, Japan, Germany, Mexico, and Saudi Arabia. This diversified market layout effectively reduces dependence on a single market, thereby diminishing the risks associated with policy changes in any one country. Additionally, 智崴's market share in the United States is relatively low, accounting for only 4% of total revenue in 2023 and projected to drop to 1% in 2024. According to current market trends, the Middle East and non-U.S. Asian markets actually provide more opportunities, and overall, the impact of this new tariff policy on 智崴 is negligible.

However, the general high tariffs worldwide will still affect the entire amusement industry, as the consumption costs for people in various countries will increase, exacerbating the trend of consumption downgrade in the global market. Customers may also shift towards purchasing cost-effective products. To address this change, 智崴 has been actively promoting product diversification strategies over the past two years; the newly launched economic flying theater o-Ride has successfully been sold to Brazil, Japan, and Canada, and the new 4D motion theater product has also been successfully sold to South Korea. This July, 智崴 will also launch a new series of flying theaters that have high capacity and high cost performance, aiming to cover all product price ranges, further consolidating the market's high penetration rate.

In addition to selling amusement equipment, 智崴 also provides customers with comprehensive solutions, including video shooting, animation production, digital content licensing, and thematic design. Through diversified digital content, 智崴 not only increases sales of its equipment but also promotes growth in the content licensing market. The thematic design team provides customers with exclusive site-specific thematic design solutions, aiming to expand the growth of single sales amounts.

智崴 emphasizes that its market advantage of high gross margins gives it stronger resilience against the current wave of tariff challenges compared to competitors that primarily focus on the U.S. market. With its core technologies in research and development and system integration, key patented hardware is manufactured in Taiwan, while other hardware is flexibly sourced based on the conditions of the export market, and it has achieved effective cost efficiency management, providing it with a stronger pricing advantage than competitors during the trade war.

The new tariff policy will test the operational resilience and diversity of all amusement equipment manufacturers. 智崴 believes that although high tariffs may impact the leisure and amusement industry, based on historical signs from the past, aside from the effects of the COVID-19 pandemic in 2020, the global leisure travel market has typically seen negative impacts not exceeding 10% during events such as financial crises. Currently, international theme parks are also actively expanding, with Disney planning to invest $60 billion in theme parks and cruise projects over the next ten years. Shanghai and Hong Kong Disneyland have also announced expansion plans with new facilities; additionally, NBC Universal is building Europe's first Universal Studios in the UK, while the Middle East is advancing "Vision 2030" and actively investing in recreational and entertainment construction.

In light of the reduced number of suppliers and market demand exceeding supply after the pandemic, even when facing challenges of high tariffs, 智崴 remains confident about maintaining robust growth through 2025 and emphasizes that it will continue to solidify its market leadership through diversified strategies and high-margin products while further expanding its global footprint.