Investment Rating - The investment rating for the company is "Accumulate" (maintained) with a target price not specified [2]. Core Views - The company reported a revenue of 350 million yuan in Q3 2024, a 2% year-on-year increase, and a net profit attributable to the parent company of 50 million yuan, up 9% year-on-year [2]. - The gross margin for the first three quarters of 2024 was 49.3%, an increase of 5.1 percentage points year-on-year, while the net profit margin was 11.2%, up approximately 0.6 percentage points [2]. - The company is focusing on cost reduction and efficiency improvement through lean production processes and optimizing procurement costs, while also enhancing brand building, product upgrades, and market expansion [2]. Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 1.1 billion yuan, a 4% increase year-on-year, with a net profit of 120 million yuan, up 10% year-on-year [2]. - The company’s revenue for 2022 was 1.31 billion yuan, with a growth rate of 14.95%, while the projected revenue for 2024 is 1.53 billion yuan, reflecting an 11.51% growth rate [7]. - The earnings per share (EPS) for 2024 is projected to be 0.94 yuan, with a price-to-earnings (P/E) ratio of 29.87 [7]. Market Trends - The oral care industry is entering a recovery phase, driven by increased consumer awareness of oral health and the rising demand for differentiated products [3]. - The company has launched several successful products, including the Cold Acid Spirit anti-sensitivity toothpaste and the "Cat Paw Brush," which have gained significant popularity in the market [4]. - The online market for oral care products is expanding, with new retail formats emerging, and traditional categories like toothpaste and toothbrushes remain dominant [3]. Strategic Focus - The company is committed to a multi-brand and multi-category development strategy, enhancing its core brands while also investing in new brands and product categories [5]. - The company aims to strengthen its comprehensive service capabilities in the oral health and beauty sectors, focusing on oral care, medical, cosmetic, and capital management [5].
登康口腔：毛利率高增亮眼