Investment Rating - The report assigns an "Outperform" rating to the company for the first time, with a target price range of 47.40 to 51.90 CNY per share [4][6]. Core Insights - The company is a leader in the sensitive teeth oral care segment, holding approximately 60% market share in the sensitive toothpaste category. It has achieved a revenue of 1.376 billion CNY in 2023, with a four-year compound annual growth rate (CAGR) of 9.9% and a net profit of 141 million CNY, with a CAGR of 22.3% over the same period [1][4]. - The oral care industry is expected to grow at a CAGR of around 3% from 2023 to 2028, with significant room for product category upgrades. The average price of toothpaste in China is 8.8 CNY, compared to 15.4 CNY globally and 32.3 CNY in the U.S., indicating potential for price increases [2][40]. - The company has diversified its product offerings and is leveraging new channels for rapid growth, including a focus on e-commerce, which has seen a CAGR of 53.1% from 2019 to 2023, with e-commerce sales accounting for 22.9% of revenue in the first half of 2024 [3][28]. Summary by Sections Company Overview - The company has over 30 years of experience in the oral care industry, primarily known for its "Cold Acid Spirit" brand, which is a leading product in the sensitive toothpaste market [12][21]. - The company has established a diverse product matrix, including adult toothpaste, children's oral care products, and electric toothbrushes, with adult toothpaste accounting for about 80% of revenue [12][21]. Industry Analysis - The oral care industry is currently experiencing stable growth, with a market size of 49.15 billion CNY in 2023, projected to grow to 56.94 billion CNY by 2028 [40]. - The industry is characterized by a high concentration of market share among top players, with the top five brands holding 47.8% of the market [60]. Financial Performance - The company's revenue has increased from 944 million CNY in 2019 to 1.376 billion CNY in 2023, with a CAGR of 9.9%. The net profit has also shown a strong growth trajectory, with a CAGR of 22.3% during the same period [21][24]. - The company is expected to achieve net profits of 165 million CNY, 224 million CNY, and 286 million CNY in 2024, 2025, and 2026, respectively [4][5]. Product and Channel Strategy - The company is focusing on product upgrades and innovations, particularly in the sensitive teeth segment, which is seeing increased consumer demand [3][12]. - The company is enhancing its online presence through e-commerce platforms, which have become a significant growth driver, while maintaining a strong offline distribution network [3][28].
登康口腔（001328）：品升级创新叠加渠道变革扩张，口腔护理龙头有望领跑行业