Haoyue Care(SH:605009) Tianfeng Securities·2024-04-13 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price set at 35.76 CNY [7][8]. Core Insights - The company's revenue for Q4 2023 was 680 million CNY, a year-on-year decrease of 16.5%, while the net profit attributable to shareholders was 130 million CNY, down 20.0% year-on-year but up 16.3% quarter-on-quarter [1]. - The company plans to distribute a cash dividend of 132 million CNY for 2023, representing a 30% payout ratio [2]. - The company has successfully expanded its OEM client base, including notable brands like Babycare and Unicharm, and is preparing to launch new products in the market [3]. - The company intends to purchase the Kao factory in Hefei in 2024, leveraging its existing facilities and advantageous location for future business expansion [4]. - The revenue from other products reached 150 million CNY, showing a significant year-on-year increase of 69.7%, with key products becoming KA-level brands on major e-commerce platforms [5]. - The company's Sunny Baby brand has entered major supermarkets in Thailand and is collaborating with local distributors, enhancing its brand influence in the region [6]. - The company has adjusted its profit forecast, expecting net profits of 520 million CNY, 620 million CNY, and 730 million CNY for 2024, 2025, and 2026 respectively [27]. Financial Performance - In 2023, the company's total revenue was 2.76 billion CNY, a slight decrease of 1.6% year-on-year, while the net profit attributable to shareholders was 440 million CNY, an increase of 3.7% year-on-year [10]. - The gross margin for Q4 2023 was 29.0%, up 4.3 percentage points year-on-year, while the net margin was 18.8%, down 0.8 percentage points year-on-year [13]. - The company reported a total market capitalization of approximately 5.55 billion CNY and a debt-to-asset ratio of 30.76% [8]. Market Expansion - The company is focusing on expanding its self-owned brands and enhancing marketing channels to increase product sales and market share [25]. - The company plans to establish a production base in Mexico with a total investment of 30 million USD, aimed at strengthening partnerships with multinational companies in North and South America [22].