Investment Rating - The report assigns a "Buy" rating to the company with a target price of 28.68 CNY per share based on a 30x PE for 2024 [3]. Core Insights - The company is a leader in the sensitive toothpaste segment, with revenue growth from 944 million CNY in 2019 to 1.376 billion CNY in 2023, and net profit increasing from 63 million CNY to 141 million CNY during the same period [1][13]. - The oral care market in China is expected to undergo transformation, driven by demand upgrades and the rise of new product categories such as mouthwash and electric toothbrushes [1][23]. - The company is expanding its product matrix and optimizing its pricing strategy to capture market share, particularly in lower-tier markets and through online channels [1][17]. Summary by Sections Company Overview - Chongqing Dengkang Oral Care Products Co., Ltd. was established in 2001 and has become a significant player in the oral care industry, focusing on sensitive toothpaste and maintaining a comprehensive product matrix [10][12]. Market Analysis - The Chinese oral care market was valued at 52.173 billion CNY in 2021, with a year-on-year growth of 4.56%. The market is expected to continue expanding due to increased consumer awareness of oral health [23][24]. - The share of basic oral care products is declining, while specialized and electric products are gaining traction, indicating a shift in consumer preferences [24][26]. Financial Performance - The company has shown steady revenue growth, with a CAGR of 9.88% from 2019 to 2023. The first quarter of 2024 reported revenue of 361 million CNY and net profit of 37 million CNY [13][14]. - The revenue breakdown indicates that adult oral care products account for 89.36% of total sales, with significant growth in electric toothbrushes and oral medical products [13][21]. Channel Strategy - The company has a diversified channel strategy, with 72.32% of revenue coming from distribution channels, 3.94% from direct supply, and 22.98% from e-commerce, reflecting a shift towards online sales [17][18]. - The gross margin has improved, with a reported 48.43% in Q1 2024, driven by an increase in the sales of mid-to-high-end products [17][21].
登康口腔：抗敏牙膏龙头，拓品迭代+多元渠道，变革可期