Haoyue Care(605009) ZHESHANG SECURITIES·2025-04-15 13:09Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's main business in baby pants has stabilized and is showing signs of recovery, while the acquisition of the Jieting brand is expected to drive growth [5] - The company reported a revenue of 2.93 billion yuan for 2024, a year-on-year increase of 6.3%, but a net profit of 390 million yuan, a decrease of 11.7% year-on-year [1][11] - The company continues to provide high dividend returns to shareholders, proposing a cash dividend of 8.5 yuan per 10 shares and a capital reserve transfer of 4 shares for every 10 shares [1] Revenue Breakdown - Baby hygiene products generated 2.06 billion yuan in revenue for 2024, up 4.3% year-on-year, with a sales volume of 3.04 billion pieces, an increase of 12.3% [2] - Adult hygiene products saw revenue of 550 million yuan, a slight decrease of 0.6% year-on-year, while other products experienced significant growth with a revenue of 230 million yuan, up 57.6% [2] - Domestic revenue in the second half of 2024 was 1.27 billion yuan, up 6.3% year-on-year, while overseas revenue reached 260 million yuan, a substantial increase of 67.2% [2] Profitability Analysis - The company's gross margin for 2024 was 27.91%, an increase of 0.97% year-on-year, primarily due to reduced material costs from increased in-house production [3] - The net profit margin for 2024 was 13.2%, down 2.7 percentage points year-on-year, with a significant decline in the fourth quarter [3] - Sales expenses increased significantly due to enhanced marketing for the company's own brands, with online promotion costs rising by 88.5% year-on-year [4] Future Outlook - The acquisition of Hubei Sibao Care is expected to significantly enhance the company's performance, with Sibao achieving a revenue of 680 million yuan in 2024, up 26% year-on-year [5] - The company is expanding production capacity and has acquired production lines from major brands to improve its market share [5] - Revenue projections for 2025-2027 are 3.74 billion, 4.20 billion, and 4.66 billion yuan, respectively, with corresponding net profits of 486 million, 547 million, and 617 million yuan [11]