Haoyue Care(605009) Huachuang Securities·2025-04-21 04:04Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 59.9 yuan, based on expected performance exceeding the benchmark index by 10%-20% over the next six months [5][15]. Core Insights - The company reported a revenue of 2.93 billion yuan and a net profit attributable to shareholders of 388 million yuan for 2024, reflecting a year-on-year revenue growth of 6.3% but a decline in net profit by 11.6% [3][5]. - The company plans to distribute a cash dividend of 8.5 yuan per 10 shares, with a total dividend payout of 260 million yuan, corresponding to a dividend rate of 67.2% [3][5]. - The company is focusing on enhancing its own brand and expanding its overseas market presence, with significant growth in international sales, particularly driven by its subsidiary in Thailand [3][9]. Financial Performance Summary - Revenue and Profit Forecasts: - 2024A: Revenue of 2.93 billion yuan, net profit of 388 million yuan - 2025E: Revenue of 3.75 billion yuan, net profit of 492 million yuan - 2026E: Revenue of 4.25 billion yuan, net profit of 552 million yuan - 2027E: Revenue of 4.77 billion yuan, net profit of 632 million yuan [3][10]. - Profitability Metrics: - Gross margin for 2024 is reported at 27.9%, an increase of 1.0 percentage points year-on-year [3][9]. - The net profit margin for 2024 is 13.2%, a decrease of 2.7 percentage points year-on-year [3][9]. - Earnings Per Share (EPS): - EPS for 2024 is projected at 2.51 yuan, with estimates of 3.19 yuan for 2025, 3.58 yuan for 2026, and 4.10 yuan for 2027 [3][10]. Market and Product Insights - The company has seen a 4.3% increase in revenue from baby hygiene products, with sales driven by changing parenting attitudes [3][9]. - The adult hygiene product segment experienced a slight decline in revenue by 0.6%, while other products, including wet wipes, saw a significant increase of 57.6% [3][9]. - The company is increasing its self-produced raw materials, which has contributed to improved gross margins [3][9]. Strategic Initiatives - The company is enhancing its brand development and expanding its production capacity across various regions, including a recent acquisition aimed at boosting profitability [3][9]. - The focus on international markets is expected to continue driving growth, particularly in Southeast Asia [3][9].