Haoyue Care(SH:605009) Guotai Junan Securities·2024-04-25 08:32Investment Rating - The investment rating for the company is "Buy" with a target price of 47.46, down from the previous target of 48.46 [10][16]. Core Insights - The company has shown significant growth in overseas channels and has exceeded expectations in dividend increases, with a payout ratio rising to nearly 60% [10][16]. - The company is actively expanding its own brand and gradually releasing new product categories such as wet toilet paper, leveraging its R&D and manufacturing advantages to strengthen ties with leading clients and further increase market share [10][16]. - The company reported a revenue of 27.57 billion yuan in 2023, a slight decrease of 1.62%, while the net profit attributable to shareholders was 4.39 billion yuan, an increase of 3.72% [10][16]. Financial Summary - The company achieved a revenue of 6.82 billion yuan in Q4 2023, down 16.51% year-on-year, with a net profit of 1.28 billion yuan, a decrease of 19.97% [10][16]. - The company plans to adjust its EPS forecasts for 2024 and 2025 to 3.39 and 4.00 yuan respectively, with a new EPS for 2026 projected at 4.46 yuan [10][16]. - The company’s operating profit margin is expected to improve to 17.7% in 2024, with a net profit margin of 15.9% [10][16]. Market Position - The company is a leading manufacturer in the personal hygiene care products sector in China, focusing on the R&D, manufacturing, and sales of various hygiene products [10][16]. - The company has established partnerships with numerous leading brands, including Procter & Gamble, Kimberly-Clark, and Unicharm, as well as domestic brands [10][16]. - The company’s overseas business has seen substantial growth, contributing to a steady improvement in profitability, particularly driven by increased sales in Thailand and business volume from major clients [10][16].