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].

Investment Rating - The report assigns a "Buy" rating to the company [1][2]. Core Insights - The company is positioned as a leading one-stop multi-category platform for home care, personal care, and pet products in China, with a solid foundation in home care and promising growth in the pet segment, supported by a dividend yield of approximately 7%-8% [1][10]. - The company achieved a revenue of 1.249 billion RMB in H1 2024, representing a year-on-year growth of 10.3%, and a net profit of 179 million RMB, reflecting a year-on-year increase of 31.5% [1][15]. - The company has established a strong market presence in various segments, including pest control, home cleaning, and air care, and is actively expanding its pet business through offline store services [1][10][11]. Summary by Sections Overview - The company offers a comprehensive range of home care, personal care, and pet products, covering various categories such as insect repellent, home cleaning, air care, hand sanitizers, and pet food [1][10]. - It has maintained the leading market share in the insect repellent sector for nine consecutive years and ranks second in home cleaning and air care markets [1][10]. Pet Business - The company has significantly invested in the pet segment, launching brands like "Stubborn Tail" for pet care products and "Stubborn Mouth" for high-end pet food, establishing a dual-track strategy in pet supplies and food [1][11]. - The pet business has shown remarkable growth, with revenue increasing from 0.02 billion RMB in 2019 to 0.77 billion RMB in 2023, achieving a CAGR of 158.1% [15][17]. Home Care Business - The home care segment remains the core revenue driver, contributing 93.1% of total revenue in H1 2024, with a year-on-year growth of 11.5% [15][17]. - The company has optimized its product structure and enhanced its online and offline sales channels to boost profitability [1][10]. Financial Forecast and Investment Recommendations - Revenue projections for 2024-2026 are estimated at 1.813 billion RMB, 2.002 billion RMB, and 2.194 billion RMB, with respective year-on-year growth rates of 12%, 10%, and 10% [1][2]. - Net profit forecasts for the same period are 213 million RMB, 237 million RMB, and 262 million RMB, with year-on-year growth rates of 22%, 11%, and 11% [2][15].

Financial Performance - For the six months ended June 30, 2024, Cheerwin Group reported revenue of RMB 1,249.1 million, a 10.3% increase from RMB 1,132.8 million in the same period of 2023[4] - Gross profit for the same period was RMB 579.0 million, reflecting a 23.8% increase compared to RMB 467.8 million in the prior year[4] - The company achieved a profit before tax of RMB 220.1 million, up 26.4% from RMB 174.1 million year-on-year[4] - Net profit for the period was RMB 175.9 million, representing a 29.6% increase from RMB 135.7 million in the previous year[4] - Basic earnings per share increased to RMB 13.46, compared to RMB 10.24 for the same period last year, reflecting a growth of 31.8%[68] - The company reported a total comprehensive income of RMB 184,113 thousand for the period, compared to RMB 174,976 thousand in the previous year, an increase of 5.0%[68] Revenue Breakdown - Revenue from home care products reached RMB 1,163.6 million, an 11.5% increase compared to the same period last year[5] - Revenue from pet and pet products was RMB 47.6 million, a 5.3% increase year-on-year[5] - Revenue from personal care products decreased by 18.4% to RMB 34.8 million compared to the same period in 2023[5] - Online sales revenue was RMB 405.9 million, marking an 18.9% increase from the previous year[5] - Offline sales revenue reached RMB 843.3 million, a 6.5% increase compared to the same period last year[5] Asset and Equity Position - The total assets of the company as of June 30, 2024, were RMB 3,670.2 million, down from RMB 3,836.1 million at the end of 2023[4] - The company’s equity attributable to owners increased to RMB 3,023,302 thousand from RMB 2,927,365 thousand, a rise of 3.3%[69] - The company’s total equity as of June 30, 2024, was RMB 3,027,292 thousand, an increase from RMB 2,969,594 thousand as of June 30, 2023, reflecting a growth of 1.9%[71] Cost and Expenses - Employee costs rose to RMB 112.1 million from RMB 95.3 million, driven by the expansion of the pet offline store business and increased performance bonuses[34] - Sales and distribution expenses totaled RMB 317,747,000, up 20% from RMB 264,799,000 in the previous year[85] - The company’s administrative expenses for the six months ended June 30, 2024, were RMB 41,629,000, slightly up from RMB 40,779,000 in the previous year, indicating a marginal increase of about 2.1%[90] Dividend and Shareholder Information - The interim dividend declared is RMB 0.0538 per share, equivalent to HKD 0.0588, maintaining a stable payout ratio of 40.0%[35] - The company will suspend share transfer registration from September 13 to September 17, 2024, to determine eligibility for the interim dividend[36] - Major shareholders, including Ma Huizhen and Li Ruohong, each hold 990,000,000 shares, accounting for 74.25% of the company's equity[40] Strategic Initiatives - The company aims to enhance brand strength and product capabilities while expanding distribution channels in the second half of 2024[8] - The focus will be on increasing the sales proportion of high-margin products and optimizing supply costs to achieve cost reduction and efficiency goals[8] - The company plans to actively pursue acquisition opportunities in the domestic and international pet and fast-moving consumer goods sectors[8] Stock Options and Restricted Shares - The total number of stock options available for grant under the stock option plan as of January 1, 2024, and June 30, 2024, is 128,533,350 options each, representing approximately 9.64% of the issued share capital of 1,333,333,500 shares[44] - The maximum number of restricted shares that can be granted under the Restricted Share Award Scheme is capped at 25,000,000 shares, equivalent to 1.87% of the total issued shares as of the report date[48] - A total of 9,600,000 restricted shares have been granted under the scheme, with various executives and employees as participants[50] Financial Health and Cash Flow - Operating cash outflow for the six months ended June 30, 2024, was RMB 159.7 million, compared to RMB 74.0 million in the same period of 2023[24] - Cash and cash equivalents at the end of the period on June 30, 2024, amounted to RMB 842,328 thousand, compared to RMB 769,326 thousand at the end of June 30, 2023, showing an increase of 9.5%[72] - The company’s financing activities resulted in a net cash outflow of RMB 18,465 thousand for the six months ended June 30, 2024, compared to RMB 5,150 thousand for the same period in 2023[72] Market Position and Competitive Advantage - The company has maintained its leading market share in insect repellent products in China for ten consecutive years, according to NielsenIQ data[6] - The company continues to innovate in product development, focusing on differentiated and effective products to enhance overall profitability[6] Compliance and Governance - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period[58] - The board of directors consists of eight members, including three independent non-executive directors, ensuring sufficient independent opinions to protect the interests of the company and its shareholders[58]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has shown steady growth with a revenue increase of 10.3% and a net profit increase of 31.5% in the first half of 2024, achieving revenues of 1.25 billion and net profits of 180 million [1]. - The company continues to focus on high dividend payouts, with a dividend per share of 0.0538 RMB, corresponding to a payout ratio of 40% [1]. - The home care segment has solidified its market position, while the pet business is developing with a focus on high-quality products [2]. - The company is actively expanding its online and offline channels, with online revenue growing by 18.9% to 410 million, accounting for 32.5% of total revenue [1]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 1.25 billion, up 10.3%, and a net profit of 180 million, up 31.5% [1]. - The gross margin improved by 5.1 percentage points to 46.4%, and the net profit margin increased by 2.1 percentage points to 14.07% [1]. - The company expects revenues of 1.805 billion, 1.990 billion, and 2.181 billion for 2024, 2025, and 2026, respectively, with growth rates of 11.7%, 10.3%, and 9.6% [2]. Business Segments - Home care products generated 1.16 billion in revenue, up 11.5%, with significant growth in mosquito repellent products [1]. - The pet segment generated 48 million, up 5.3%, with a focus on developing functional pet snacks and fresh food [1]. - Personal care products saw a decline in revenue, down 18.4% to 35 million [1]. Channel Strategy - Online sales increased by 18.9% to 410 million, with a strong performance on platforms like Douyin [1]. - Offline sales reached 840 million, up 6.5%, with efforts to expand into new retail channels [1].

Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company reported a revenue of 1.249 billion RMB for the first half of 2024, representing a year-on-year growth of 10.3%, and a net profit of 179 million RMB, which is a 31.5% increase year-on-year [4] - Multiple business segments are showing steady growth, with home care products, pet products, and personal care products achieving revenues of 1.164 billion RMB, 47.63 million RMB, and 34.75 million RMB respectively, with year-on-year growth rates of +11.5%, +5.3%, and -18.4% [4] - The company's product innovation strategy has proven effective, enhancing brand strength and market share in pest control and home cleaning products [4] - Online sales channels are rapidly developing, with online revenue reaching 406 million RMB, a year-on-year increase of 18.9% [4] - The company's profitability has significantly improved, with a net profit margin of 14.37%, up by 2.32 percentage points year-on-year, and a gross profit margin of 46.35%, up by 5.05 percentage points year-on-year [4] Financial Summary - The company expects net profits for 2024, 2025, and 2026 to be 190 million RMB, 208 million RMB, and 227 million RMB, reflecting year-on-year growth rates of 8.8%, 9.1%, and 9.1% respectively [4] - The current closing price corresponds to a PE ratio of 13 and 12 times for 2024 and 2025, respectively [4] - The estimated reasonable value range for the company is between 2.14 to 2.29 RMB, or 2.36 to 2.51 HKD, based on a PE valuation of 15 to 16 times for 2024 [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.94 [3][7]. Core Insights - The company achieved a total revenue of RMB 1.25 billion in the first half of 2024, representing a year-on-year growth of 10.3% [1]. - The overall gross margin improved by 5.1 percentage points to 46.4%, exceeding expectations due to the successful launch of popular products and a decrease in raw material costs [1]. - Net profit for the first half of 2024 reached RMB 180 million, a year-on-year increase of 31.5%, with a net profit margin rising by 2.3 percentage points to 14.4% [1]. - The company aims to expand its pet product line, targeting 65 stores by the end of the year, with a gross margin increase from 45.4% to 49.5% in the pet category [1][2]. Financial Performance - The company’s revenue is projected to grow from RMB 1.79 billion in 2024 to RMB 2.23 billion in 2026, with a compound annual growth rate (CAGR) of approximately 12% [2][5]. - The net profit is expected to increase from RMB 194 million in 2024 to RMB 241 million in 2026, reflecting a growth rate of 13.9% [2][5]. - The company maintains a high dividend payout ratio, with a projected dividend yield of approximately 7% [2][3]. Market Position - The home care segment remains strong, with significant market share in insect repellent and home cleaning products, indicating high brand loyalty and customer retention [1][2]. - Online sales grew by 18.9%, while offline sales increased by 6.5%, demonstrating effective multi-channel strategies [2].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a robust revenue growth of 10.27% year-on-year, achieving a total revenue of 1.249 billion yuan for the first half of 2024, with a net profit increase of 29.60% to 176 million yuan [3]. - The company has a strong cash position with 2.665 billion yuan in cash and equivalents as of June 30, 2024, and maintains a high dividend payout ratio of 40% [3]. - The home care segment shows steady growth, with online sales channels increasing their contribution to 32.49%, up 2.36 percentage points year-on-year [3]. - Profitability improved with gross and net profit margins rising to 46.35% and 14.08%, respectively, benefiting from product mix optimization and supply chain reforms [3]. - The company is expanding its pet product offerings and has successfully transformed its pet stores, increasing the number of locations to 46 in major cities [3]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved revenues of 1.164 billion yuan in home care, 35 million yuan in personal care, and 48 million yuan in pet products, with respective year-on-year changes of +11.47%, -18.41%, and +5.28% [3]. - Online sales generated 406 million yuan, growing by 18.92%, while offline sales reached 843 million yuan, up 6.55% [3]. Profitability - The gross profit margin for home care, personal care, and pet products stood at 46.42%, 42.35%, and 49.55%, with year-on-year changes of +5.23, -0.29, and +4.12 percentage points, respectively [3]. - Selling and distribution expenses accounted for 25.44% of revenue, while administrative expenses were 6.95%, reflecting a year-on-year increase of 2.06 and a decrease of 0.52 percentage points, respectively [3]. Growth Strategy - The company is focusing on creating blockbuster products in the home care segment while expanding its pet business through investments in technology and store renovations [3]. - The revenue projections for 2024-2026 are estimated at 1.788 billion, 1.980 billion, and 2.196 billion yuan, with net profits of 186 million, 206 million, and 229 million yuan, respectively [3].