Investment Rating - The report maintains a "Buy" rating for Hengan International (1044) with a target price of 31.08 RMB [5] Core Views - Hengan International's 2024H1 performance met expectations, with revenue of 11.836 billion RMB (-3.0% YoY) and net profit of 1.409 billion RMB (+14.9% YoY) [5] - The company's gross margin improved to 33.3% (+2.3pct YoY) due to lower raw material costs and reduced exchange losses [5] - Product structure continued to improve, with high-end product sales growing over 10% in 2024H1 [5] - E-commerce channels performed well, contributing 36.4% to tissue, 25.6% to sanitary napkins, and 53.5% to diaper sales [5] Business Segment Analysis Tissue - Revenue of 6.951 billion RMB (-3.1% YoY) in 2024H1 [5] - Wet wipes revenue grew 20.4% to 592 million RMB, accounting for 8.5% of tissue sales (+1.6pct YoY) [5] - Gross margin improved to 19.6% (+1.9pct YoY) driven by product upgrades [5] Sanitary Napkins - Revenue of 3.147 billion RMB (-2.2% YoY) in 2024H1 [5] - High-end products helped offset industry competition pressure [5] - Gross margin reached 62.7% (+0.9pct YoY) [5] Diapers - Revenue of 711 million RMB (+7.0% YoY) in 2024H1 [5] - New retail and maternal-infant channels contributed 53.3% and 20.0% respectively [5] - Gross margin improved significantly to 45.3% (+9.3pct YoY) due to strong growth of high-end Q•MO diapers [5] Cost and Expense Management - Sales and administrative expenses decreased to 2.472 billion RMB (-3.6% YoY), accounting for 20.9% of revenue (-0.1pct YoY) [5] - Exchange losses reduced by 80.3% [5] Future Outlook - The company is expected to maintain profit improvement through enhanced cost control and product upgrades [5] - Continued focus on high-end product development and new retail channels like Douyin [5] - Maintained net profit forecasts for 2024-2026 at 2.923/3.012/3.203 billion RMB [5]
恒安国际2024年中报点评：业绩符合预期，产品升级叠加控费提振盈利