Investment Rating - The industry investment rating is maintained as "Outperform the Market" [2][51]. Core Insights - The pet industry is experiencing a significant shift from "basic subsistence" consumption to "quality upgrade" consumption, with a notable 73% year-on-year increase in sales of pet products in live streaming sessions [4][11]. - The 618 shopping festival saw total sales in the pet food sector reach 7.5 billion yuan, indicating resilience in demand and structural upgrades within the industry [5][19]. - The rise of domestic brands is evident, with a substantial increase in the number of new products launched during the 618 festival, reflecting a strong response to consumer demand for quality and innovation [16][19]. Summary by Sections Live Streaming Sales - Sales of pet products in Li Jiaqi's live streaming room increased by 73% year-on-year, with essential items like staple food, snacks, and cat litter making up 92% of total sales [10][11]. - The new generation of pet owners (67% being post-90s and post-00s) is shifting their purchasing criteria from "having food" to "prioritizing ingredient lists," emphasizing the importance of quality and health in pet food [4][10]. 618 Shopping Festival Insights - The 2025 618 shopping festival saw pet food sales reach 7.5 billion yuan, showcasing the industry's robust demand and structural upgrades [5][19]. - The competition landscape is evolving, with platforms like Taobao and Tmall shifting focus from price wars to long-term value, promoting a healthier growth model based on brand loyalty and consumer engagement [5][19]. Offline Marketing Strategies - Brands are increasingly adopting experiential marketing strategies to enhance consumer engagement and drive premiumization, with examples including themed pop-up stores and integrated service models [6][32][41]. - The "4S model" by Chaoyun Group integrates various pet services, creating a comprehensive service ecosystem that enhances customer experience and brand loyalty [41]. Investment Recommendations - The report suggests focusing on domestic brands that are rapidly emerging in the pet economy, particularly those aligned with the dual themes of "domestic substitution" and "consumption upgrade." Recommended stocks include: Guibao Pet, Petty Co., Zhongchong Co., and Lusi Co., with a watch on Chaoyun Group [6].

Core Viewpoint - Chao Yun Group has shown strong performance in the stock market, with a year-to-date increase of over 63%, reaching a new high since 2022, indicating a recovery from previous fluctuations [4]. Company Performance - In 2024, Chao Yun Group achieved a revenue of 1.82 billion RMB, representing a year-on-year growth of 12.7%. The gross profit was 894.34 million RMB, with a gross margin of 49.1%, an increase of 4.6 percentage points from the previous year [4][5]. - The pet product segment experienced significant growth, generating revenue of 127 million RMB, a substantial increase of 64.5% year-on-year, with a gross margin of 54.7%, up by 11.5 percentage points [4][5]. Market Position and Trends - Chao Yun Group is recognized as a leading player in the home care industry in China, with well-known brands under its umbrella, including "Chao Wei," "Bei Bei Jian," and "Wei Wang" [4]. - The pet consumption market in urban China has shown a compound annual growth rate of 11.9% from 2015 to 2024, surpassing growth rates in the US and Japan, highlighting the robust potential of the pet economy [5]. - The recent e-commerce promotions have demonstrated strong sales in the pet sector, with significant increases in transactions for various pet brands [6]. Dividend and Investment Appeal - Chao Yun Group announced a final dividend of 0.0682 RMB per share, maintaining a high dividend payout ratio of approximately 80% for the previous year, which attracts institutional investors [6]. - The company has a solid cash position and a projected dividend rate of 81.5% for 2024, indicating strong shareholder returns [6].

Group 1 - As of May 26, a total of 88 stocks reached their 52-week highs, with Tianbao Energy (01671), China Nuclear International (02302), and Honghui Group (00183) leading the high rate at 141.60%, 93.92%, and 21.34% respectively [1] - Tianbao Energy closed at 0.700 and reached a peak of 1.510, marking a significant increase of 141.60% [1] - China Nuclear International closed at 4.090 with a highest price of 5.100, reflecting a rise of 93.92% [1] Group 2 - Other notable stocks that reached their 52-week highs include Century International (00959) with an increase of 18.64%, and Junjie Group Holdings (08188) with a rise of 17.95% [1] - The list also includes Haotian Financial Group (01260) with a 13.70% increase and Dechang Electric Holdings (00179) with a 10.96% rise [1] - The overall trend indicates a strong performance in the market, with multiple stocks achieving significant gains [1] Group 3 - The report also highlights stocks that reached their 52-week lows, with Sipai Health (00314) showing the largest decline at -11.65% [3] - Other stocks experiencing declines include Feitian Yundong (06610) at -9.05% and Hengrui Medicine (01276) at -4.81% [3] - The presence of stocks reaching both highs and lows suggests a volatile market environment [3]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue reached RMB 1,820.1 million, representing a 12.7% increase from RMB 1,615.6 million in 2023[10]. - Gross profit for the same period was RMB 894.3 million, up 24.5% from RMB 718.3 million in 2023[10]. - The company reported a net profit of RMB 195.2 million for the fiscal year 2024, an increase of 12.9% compared to RMB 172.8 million in 2023[10]. - Revenue from home care products was RMB 1,633.8 million, an increase of 11.0% from the previous year[13]. - Revenue from pet stores and pet products surged to RMB 127.2 million, marking a 64.5% increase year-over-year[13]. - Online sales generated RMB 670.9 million, reflecting a 22.1% growth compared to the previous year[13]. - The company's total assets as of December 31, 2024, amounted to RMB 3,801.7 million, a slight decrease from RMB 3,836.1 million in 2023[11]. - The equity attributable to owners of the company increased to RMB 2,990.9 million in 2024, up from RMB 2,927.4 million in 2023[11]. - The company's revenue increased by 12.7% from RMB 1,615.6 million in 2023 to RMB 1,820.1 million in 2024, driven by successful market opportunities and rapid sales channel development[20]. - Profit before tax increased by 11.6% from RMB 217.3 million in 2023 to RMB 242.5 million in 2024[37]. - Net profit increased by 13.0% from RMB 172.8 million in 2023 to RMB 195.2 million in 2024, maintaining a net profit margin of 10.7%[39]. Revenue Breakdown - Home care products generated RMB 1,633.8 million in revenue, an increase of 11.0% from RMB 1,471.9 million in 2023, accounting for 89.8% of total revenue[21][22]. - Pet store and pet product revenue surged by 64.5% to RMB 127.2 million in 2024, up from RMB 77.3 million in 2023, representing 7.0% of total revenue[22]. - Online sales revenue rose by 22.1% to RMB 670.9 million, making up 36.9% of total revenue, while offline sales increased by 7.8% to RMB 1,149.2 million, accounting for 63.1%[23][24]. Gross Profit and Margins - Gross profit increased by 24.5% from RMB 718.3 million in 2023 to RMB 894.3 million in 2024, with an overall gross margin improvement from 44.5% to 49.1%[25]. - For the year ended December 31, 2024, the gross profit for home care products was RMB 804.3 million, with a gross margin increase from 45.0% in 2023 to 49.2% in 2024[29]. - The gross profit for pet stores and pet products was RMB 69.5 million, with a gross margin increase from 43.2% in 2023 to 54.7% in 2024[29]. - The gross profit for personal care products was RMB 22.5 million, with a gross margin increase from 40.3% in 2023 to 42.2% in 2024[29]. - Online channel gross profit reached RMB 374.6 million, with a gross margin increase from 47.8% in 2023 to 55.8% in 2024[31]. - Offline channel gross profit was RMB 519.7 million, with a gross margin increase from 42.7% in 2023 to 45.2% in 2024[31]. Strategic Plans and Investments - The company plans to continue focusing on product innovation and market expansion to meet consumer demands[6]. - The company plans to expand its high-end natural home care product line and enhance distribution coverage for home cleaning products in 2025[16]. - The company aims to accelerate mergers and acquisitions in personal care, cosmetics, and pet industries to identify quality projects with stable cash flow and clear profit models[19]. - Continuous investment in technology research and development is planned to maintain industry-leading capabilities and introduce differentiated products[16]. - The company is investing $30 million in R&D for new technologies aimed at enhancing product efficiency[5]. - Market expansion plans include entering three new international markets by Q4 2024[6]. Cost Management and Expenses - The management emphasized effective cost management measures to ensure stable growth in revenue and profits[12]. - Selling and distribution expenses increased by 26.8% from RMB 425.0 million in 2023 to RMB 538.8 million in 2024[33]. - Other income decreased by 6.9% from RMB 123.5 million in 2023 to RMB 115.0 million in 2024, accounting for 6.3% of total revenue[32]. Shareholder Returns and Dividends - The company is committed to a stable high dividend policy to maximize shareholder returns[19]. - The company reported a final dividend of RMB 0.0682 per share, equivalent to HKD 0.0739, for the fiscal year ending December 31, 2024, compared to RMB 0.0640 per share for the previous year[83]. - The total dividend for the year amounts to RMB 0.1220 per share, with a payout ratio of approximately 80.0%[83]. Governance and Compliance - The company has established a strong governance structure with independent directors providing oversight and strategic guidance[66]. - The company has established an ESG committee to oversee its environmental, social, and governance management[80]. - The company has complied with the environmental, social, and governance reporting guidelines as per the stock exchange requirements[165]. - The company is committed to high standards of corporate governance and has adopted the corporate governance code as its own[168]. - The board consists of three independent non-executive directors, accounting for one-third of the total board members[176]. Risk Management - The company identified key risks including reliance on brand reputation, intense industry competition, and changing consumer preferences[78]. Human Resources and Management - The company is committed to improving its human resources management to support its growth strategy[71]. - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[10]. - The company encourages continuous professional development for directors to update their knowledge and skills[178]. Related Party Transactions - Independent non-executive directors confirm that the ongoing related party transactions are conducted on normal commercial terms and are in the overall interest of the company's shareholders[146]. - The company has entered into a new property service framework agreement with major shareholders, with annual transaction caps of approximately RMB 11.4 million, RMB 11.7 million, and RMB 12.1 million for the years ending December 31, 2024, 2025, and 2026, respectively[136].

Summary of Conference Call Company Overview - The conference call was held for 招云集团 (Zhaoyun Group) to discuss its 2024 performance and future outlook [1] Key Financial Performance - In 2024, Zhaoyun Group achieved a revenue of 1.82 billion RMB, representing a year-on-year growth of 13% [2] - The net profit reached 195 million RMB, also a 13% increase, with operating net profit at 120 million RMB, showing a significant growth of 50% [2] - The overall gross margin improved to 49.1%, up by 4.6 percentage points from the previous year [2] - The company maintained a cash reserve of over 2.7 billion RMB as of December 31, 2024 [2] - The dividend payout ratio for 2024 was 80%, with a mid-term payout ratio of 40% already completed [2][8] Business Segments Pet Business - The pet segment generated 127 million RMB in revenue, a substantial increase of 64.5% year-on-year [3] - The revenue from self-owned pet brands was 61.17 million RMB, growing by 7.4% [3] - The number of pet stores reached 60, contributing 65.98 million RMB, a remarkable growth of 224% [3] - The company has several flagship products with annual sales exceeding 100 million RMB [3] Home Care Products - The home care segment is undergoing upgrades, with a focus on enhancing product lines and market share [16] - The company aims to maintain its leading position in the mosquito repellent market, which has been the top seller for ten consecutive years [16] Growth Strategies - For 2025, the company plans to focus on several growth drivers: - Continuous upgrades and distribution of home care products [6] - Expansion in e-commerce channels, particularly on platforms like JD.com and Pinduoduo [6] - Development of new pet store formats and enhancing profitability per store [6][10] - The company anticipates maintaining a payout ratio of at least 80% in the coming years [8] Cost Management - The cost of raw materials and packaging decreased by 4.4% in 2024, with expectations for stable costs in 2025 [8] - The gross margin is projected to continue improving in 2025 [8] Market Position and Future Outlook - The company is committed to sustainable growth through product innovation and supply chain reforms [22] - The pet business is expected to contribute significantly to revenue, with projections of 1.8 to 1.9 billion RMB in 2025, reflecting a growth of 40% to 50% [15] - The company is also exploring acquisition opportunities to enhance its market position [20] Additional Insights - The company is focusing on optimizing the cost structure and improving the efficiency of various channels [7] - There is a strong emphasis on digital strategies and enhancing brand presence across multiple platforms [22] This summary encapsulates the key points discussed during the conference call, highlighting the financial performance, business segments, growth strategies, and future outlook of Zhaoyun Group.

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The report highlights that the company achieved a year-on-year revenue growth of 12.6% to 1.82 billion RMB and a net profit growth of 13% to 195 million RMB in 2024, with a gross margin of 49.14%, an increase of 4.68 percentage points year-on-year [6][10]. - The company is expected to continue its multi-brand and multi-category channel development strategy, enhancing its competitive advantages through product innovation and channel optimization [10]. Revenue and Profit Growth - The home care product segment showed stable growth, with revenue reaching 1.634 billion RMB, a year-on-year increase of 11%, and a gross margin improvement from 45.0% in 2023 to 49.2% in 2024 [7]. - The pet product segment experienced rapid growth, with revenue of 127 million RMB, a year-on-year increase of 64.49%, and a gross margin increase from 43.2% to 54.7% [7]. Channel Development - Online sales channels achieved revenue of 671 million RMB, a year-on-year increase of 22.1%, with gross margins rising from 47.8% to 55.8% [7]. - Offline sales channels generated 1.149 billion RMB in revenue, a year-on-year increase of 7.8%, with gross margins improving from 42.7% to 45.2% [7]. Research and Innovation - The company has a strong focus on research and development, with over 172 patents by the end of 2024, and notable product performance in various categories [7][10]. - Key products such as the "Super Mosquito Repellent Green Bottle" and "Pet Food Fresh Package" have seen significant sales growth, indicating strong market demand [7]. Financial Projections - The company is projected to achieve revenues of 2.006 billion RMB, 2.206 billion RMB, and 2.420 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 225 million RMB, 247 million RMB, and 271 million RMB [10][11]. - The expected price-to-earnings (P/E) ratios for the next three years are 12, 11, and 10 respectively, indicating a favorable valuation outlook [10].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,820.1 million, an increase of 12.7% compared to RMB 1,615.6 million for the year ended December 31, 2023[3]. - Gross profit for the year was RMB 894.3 million, reflecting a growth of 24.5% from RMB 718.3 million in the previous year[3]. - Net profit for the year increased by 13.0% to RMB 195.2 million, up from RMB 172.8 million in the prior year[5]. - The overall gross margin improved by 4.6 percentage points due to enhanced brand power and supply chain efficiency[5]. - The company reported a net profit of RMB 195,249 thousand for 2024, compared to RMB 172,817 thousand in 2023, reflecting a growth of approximately 12.9%[11]. - Profit before tax increased by 11.6% from RMB 217.3 million in 2023 to RMB 242.5 million in 2024[66]. - The total tax expense for the year was RMB 47,270,000 in 2024, compared to RMB 44,449,000 in 2023, reflecting an increase of approximately 6.3%[37]. - Employee costs rose from RMB 173,485,000 in 2023 to RMB 212,735,000 in 2024, an increase of about 22.6%[38]. - The company reported a basic earnings per share of RMB 0.1520 for the year ending December 31, 2024, based on a profit attributable to shareholders of RMB 203,379,000, compared to RMB 0.1315 and RMB 175,016,000 for the previous year[41]. Revenue Breakdown - Online sales revenue grew by 22.1% to RMB 670.9 million, while offline sales revenue increased by 7.8% to RMB 1,149.2 million[7]. - Revenue from home care products reached RMB 1,633.8 million, an increase of 11.0% year-over-year[7]. - Revenue from pet stores and pet products surged by 64.5% from RMB 77.3 million for the year ending December 31, 2023, to RMB 127.2 million for the year ending December 31, 2024[51]. - Revenue from home care products rose by 11.0% from RMB 1,471.9 million for the year ending December 31, 2023, to RMB 1,633.8 million for the year ending December 31, 2024[50]. Dividend and Shareholder Returns - The company declared a final dividend of RMB 0.0682 per share, with a total dividend payout for the year amounting to RMB 0.1220 per share, representing a payout ratio of approximately 80.0%[4]. - The company declared a final dividend of RMB 0.0682 per share for the year ending December 31, 2024, with a total dividend payout of RMB 0.1220 per share, resulting in a payout ratio of approximately 80.0%[82]. Strategic Initiatives - The company plans to enhance its marketing strategies through digitalization and personalization to further boost brand recognition and product sales[8]. - The company plans to expand its home care product line and enhance product gross margins, focusing on high-end natural home care products[10]. - The company aims to increase the number of pet stores and improve single-store profitability as part of its pet business expansion strategy[10]. - The company plans to enhance its online sales channels and strengthen its market position on platforms like Taobao and JD.com[10]. - The company is actively pursuing acquisition opportunities in personal care, cosmetics, and pet industries to enhance its market position[10]. Financial Position - Cash and cash equivalents totaled RMB 2,707.6 million as of December 31, 2024, indicating a strong liquidity position[5]. - Total assets as of December 31, 2024, were RMB 3,321,678 thousand, compared to RMB 3,142,059 thousand in 2023, showing an increase of approximately 5.7%[13]. - The company’s net asset value increased to RMB 2,989,234 thousand in 2024 from RMB 2,937,472 thousand in 2023[15]. - Trade receivables totaled RMB 97,460,000 as of December 31, 2024, compared to RMB 87,632,000 for the previous year[42]. - Trade payables increased to RMB 189,907,000 as of December 31, 2024, from RMB 170,201,000 for the previous year[45]. - The company reported a total of RMB 406,182,000 in trade and other payables as of December 31, 2024, down from RMB 435,921,000 for the previous year[45]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[86]. - The roles of Chairman and CEO are currently held by the same individual, which the board believes ensures cohesive leadership and effective strategic planning[87]. - An audit committee has been established, consisting of three independent non-executive directors and one non-executive director, to oversee the company's accounting principles and practices[92]. - The financial data for the fiscal year ending December 31, 2024, has been agreed upon by the auditors, ensuring consistency with the audited consolidated financial statements[93]. Market and Operational Insights - The company operates primarily in China, focusing on pest control, home cleaning, air care, personal care, and pet products[25]. - The company has not early adopted any new international financial reporting standards that have been issued but are not yet effective[21]. - The company's public float meets the listing rules, with at least 25% of the total issued shares held by the public[90]. - There are no significant post-reporting events following the reporting period[91].

| 总股本（百万股） | 1333 | | --- | --- | | 流通股本（百万股） | 1333 | | 流通股比例（%） | 100 | | 总市值（亿港元） | 30 | | 流通市值（亿港元） | 30 | [公司价格与恒生指数走势比较 Table_Chart] [Table_Author] 分析师：徐偲 朝云集团 [Table_StockNameRptType] （6601.HK） 公司点评 产品战略持续推进，高质量稳利润发展 | 投资评级：买入（维持） [Table_Rank] | | --- | | 报告日期： 2025-03-21 | | [Table_BaseData] 收盘价（港元） 2.29 | | 近 12 个月最高/最低（港元） 2.35/1.45 | 执业证书号：S0010523120001 邮箱：xucai@hazq.com 分析师：余倩莹 执业证书号：S0010524040004 邮箱：yuqianying@hazq.com [Table_CompanyReport] 相关报告 1. 家居护理基石稳固，宠物线下实体 门店服务业态助力高增长，高股息率 保障股东权益 2024 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is focused on continuous product strategy advancement, achieving high-quality and stable profit growth. It offers a one-stop platform for home care, personal care, and pet products, covering various segments with seven core brands [3][4] - In the first half of 2024, the company reported revenue of 1.249 billion yuan, a year-on-year increase of 10.3%, and a net profit of 176 million yuan, up 29.6% year-on-year. The offline channel grew by 12.2%, while online revenue increased by 10.7%, with new e-commerce channels experiencing a remarkable growth rate of 300% [3][4] - The company signed a strategic cooperation agreement with Yangnong Chemical, marking the start of its fourth five-year strategic partnership, aimed at enhancing product quality and expanding its pet store network [3][4] Summary by Sections Financial Performance - The company achieved a revenue of 1.616 billion yuan in 2023, with projections of 1.813 billion yuan in 2024, 2.002 billion yuan in 2025, and 2.194 billion yuan in 2026, reflecting year-on-year growth rates of 12% for 2024 and 10% for 2025 and 2026 [9][10] - The net profit for 2023 was 175 million yuan, expected to rise to 213 million yuan in 2024, 237 million yuan in 2025, and 262 million yuan in 2026, with growth rates of 22% for 2024 and 11% for the following years [9][10] - The company maintains a strong cash flow with cash and cash equivalents totaling 2.665 billion yuan [3] Product Strategy - The company has successfully launched several products that have gained popularity, such as the Super We mosquito repellent spray and the Weiwang pine wood orange fragrance toilet cleaner, both achieving top rankings on platforms like Douyin [4][6] - The company is actively enhancing its product offerings across various segments, including high-end natural home cleaning products and innovative pet food solutions [4][6] Market Position - The company is recognized as a leading platform in China for multi-category home care, personal care, and pet products, with a significant focus on expanding its offline pet store presence [7][9] - The strategic initiatives and product innovations are expected to drive the company's growth trajectory, establishing a second growth curve through the pet business [7][9]

Investment Rating - The investment rating for the company is "Buy" [1][6]. Core Insights - The pet business has significant growth potential, which is expected to create a second growth curve for the company, while the home care business maintains a solid market position [3][6]. - The company has been actively expanding its pet business since 2019, launching the "Stubborn Tail" brand for pet care products and entering the pet food market with a mid-to-high-end brand called "Stubborn Mouth" [6]. - The pet economy in China is projected to reach a market size of 592.8 billion yuan in 2023, with a year-on-year growth of 20.1%, and is expected to grow to 1.15 trillion yuan by 2028 [6]. - The home care business has a strong market presence, leading in categories such as insect repellent and toilet cleaning products, with market shares of 17.5% and 20.7% respectively [6]. Financial Summary - The company's revenue for 2023 is projected to be 1,616 million yuan, with a year-on-year growth of 12% [5]. - The gross profit for 2023 is expected to be 718 million yuan, and the net profit is projected to be 175 million yuan, reflecting a significant recovery from previous years [5]. - The earnings per share (EPS) forecast for 2024-2026 has been adjusted to 0.15, 0.17, and 0.19 yuan respectively, with corresponding price-to-earnings (PE) ratios of 15, 14, and 12 [6].