个护品类逐步放量，盈利能力逐步改善

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [15]. Core Views - The company reported stable growth in its 2023 annual report and Q1 2024 results, with a revenue of 9,801 million yuan in 2023, representing a year-on-year increase of 14.4%. However, the net profit decreased by 4.9% to 333 million yuan [3][4]. - The company is expected to benefit from capacity expansion and a focus on high-end products, which will drive steady growth in performance and market share in the long term [9]. Financial Performance Summary - Revenue and Profitability: - 2023 revenue was 9,801 million yuan, with a growth rate of 14.4%. The projected revenues for 2024, 2025, and 2026 are 11,000 million yuan, 12,100 million yuan, and 13,274 million yuan, respectively [3][12]. - The net profit for 2023 was 333 million yuan, with projections of 550 million yuan, 618 million yuan, and 687 million yuan for the following years [3][12]. - The gross margin for 2023 was 33.15%, with a slight increase expected in the coming years [4][12]. - Cash Flow and Efficiency: - The operating cash flow for 2023 was 12,420 million yuan, showing a significant increase of 217.08% year-on-year. However, Q1 2024 saw a negative cash flow of 1,450 million yuan due to increased inventory [5][11]. - Inventory turnover days improved to 89.02 days in 2023, indicating enhanced operational efficiency [5]. - Cost Structure: - The company's selling, general, and administrative expenses increased, with the selling expense ratio rising to 22.51% in 2023, primarily due to increased promotional activities [5][12]. - Product Segmentation: - The personal care segment showed significant growth, with a revenue increase of 172.55% year-on-year, while the household paper segment grew by 15.71% [9]. - Valuation Metrics: - The projected P/E ratios for 2024, 2025, and 2026 are 20.8, 18.5, and 16.7, respectively, indicating a favorable valuation outlook [3][12].