Investment Rating - The report upgrades the investment rating to "Buy" from "Hold" [3] Core Views - The company achieved revenue of 703 million yuan in H1 2024, a year-on-year increase of 5.5%, and a net profit attributable to shareholders of 72 million yuan, up 9.8% year-on-year [1] - The growth in core categories remains stable, with significant growth in electric toothbrushes, which saw a year-on-year increase of 62.1% [1] - The brand's market share is increasing due to effective offline strategies and e-commerce reforms, with the brand's offline market share rising to 8.6% in H1 2024 [1] Financial Performance Summary - Revenue for H1 2024: 703 million yuan (up 5.5% YoY) [1] - Net profit for H1 2024: 72 million yuan (up 9.8% YoY) [1] - Q2 2024 revenue: 343 million yuan (up 5.7% YoY) [1] - Q2 2024 net profit: 35 million yuan (up 4.2% YoY) [1] - Q2 2024 gross margin: 45.4% (up 0.9 percentage points YoY) [1] Product Category Performance - H1 2024 revenue breakdown: Adult toothpaste 550 million yuan (up 7.1%), Adult toothbrush 80 million yuan (up 0.6%), Children's toothpaste 38 million yuan (up 0.5%), Children's toothbrush 16 million yuan (down 3.5%) [1] - Electric toothbrush revenue in H1 2024: 5 million yuan (up 62.1% YoY) [1] Market Share and Growth - The company’s brand, Cold Acid Spirit, increased its offline market share to 8.6%, becoming the third-largest player in the market [1] - Revenue growth across all regions: Eastern 121 million yuan (up 1.5%), Southern 140 million yuan (up 1.8%), Western 146 million yuan (up 3.0%), Northern 115 million yuan (up 1.9%) [1] Profitability and Operational Efficiency - H1 2024 gross margin for adult toothpaste: 48.1% (up 4.5 percentage points YoY) [1] - H1 2024 e-commerce revenue: 179 million yuan (up 16.9% YoY) with a gross margin of 49.1% (up 8.3 percentage points YoY) [1] - Inventory turnover days as of Q2 2024: 103 days (up 12 days YoY) [1] Earnings Forecast - Expected net profit for 2024-2026: 160 million yuan in 2024, 180 million yuan in 2025, and 210 million yuan in 2026 [2] - Corresponding P/E ratios: 26X for 2024, 23X for 2025, and 20X for 2026 [2]
登康口腔：线下深耕&电商改革驱动份额提升，盈利能力稳步优化