Core Viewpoint - The report from CICC maintains the earnings forecast for Chaoyun Group (06601) unchanged, with the current stock price corresponding to 14/13 times P/E for 2025/26, and a target price of HKD 3.65, indicating a potential upside of 46% [1] Group 1: Financial Performance - In 1H25, the company reported revenue of RMB 1.34 billion, a year-on-year increase of 7.2%, and a net profit attributable to shareholders of RMB 170 million, a decrease of 3.3%, which aligns with CICC's expectations [1] - The interim dividend declared is RMB 0.0521 per share (equivalent to HKD 0.0571), with a payout ratio of 40%, indicating strong shareholder returns [1] Group 2: Revenue Breakdown - In 1H25, pet revenue doubled, while home care revenue grew steadily [2] - Home care product revenue increased by 4.3% to RMB 1.21 billion, driven by strong growth in mosquito repellent new products; pet and pet product revenue surged by 101.4% to RMB 96 million, with offline stores expanding to 77; personal care product revenue decreased by 25.8% to RMB 26 million [2] - Online revenue grew by 27.4% to RMB 520 million, accounting for 38.6% of total revenue, an increase of 6.1 percentage points; offline revenue decreased by 2.6% to RMB 820 million [2] Group 3: Margin Improvement - The company's gross margin improved by 2.9 percentage points to 49.3% in 1H25, with home care and pet product gross margins increasing by 2.7 and 8.6 percentage points to 49.1% and 58.1%, respectively [3] - Online gross margin increased by 5.5 percentage points to 59.9%, supported by enhanced supply chain efficiency [3] - The net profit margin attributable to shareholders was 13.0%, a decrease of 1.4 percentage points [3] Group 4: Growth Potential - The company is focusing on high-end product upgrades in home care and personal care, with new high-end natural home care products expected to support future growth [4] - The pet business is well-positioned to benefit from the expansion of the pet industry and the rise of domestic brands, with ongoing store expansion and improved service range expected to drive revenue growth [4] - As of June 30, the company had net cash of RMB 2.65 billion, with a consistently high dividend payout ratio, indicating strong shareholder returns [4]
中金：维持朝云集团(06601)跑赢行业评级 目标价3.65港元