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].
朝云集团：产品推陈出新，宠物业态高质量成长