Summary of the Conference Call for 豪悦护理 Company Overview - 豪悦护理 officially consolidated 思宝护理 in January 2025, which owns brands such as 洁婷, 美月健, and 全因爱. This move aims to expand the company's proprietary brand product matrix, creating a dual-driven growth model of OEM and proprietary brands [2][4]. Core Insights and Arguments - 豪悦护理 has significant advantages in OEM business, particularly in baby hygiene products and diapers. The company has stabilized its production share through collaborations with multiple brands and benefits from domestic brands focusing on brand operations and foreign brands' increasing demand for composite core products [2][5]. - The company is one of the earliest in China to produce and develop composite core diapers and women's sanitary napkins, with R&D investment exceeding that of peers, showcasing a notable technological advantage [2][5]. - Through technological empowerment, 豪悦护理 has launched high-priced new products under the 洁婷 brand, such as the 双优磁悬浮立体护围 and 吸引力 products, and is accelerating new product promotion with financial support [2][6]. - For the year 2025, the consolidation of 思宝护理 is expected to significantly enhance 豪悦护理's apparent growth rate, with market consensus estimating a valuation of approximately 20 times PE, corresponding to a profit growth rate of about 25%, indicating strong valuation digestion capability [2][7]. - Post-2026, as team integration deepens, the headquarters will further empower 洁婷 in product technology and production efficiency, gradually revealing its growth potential and improving profitability [2][7]. Additional Important Points - 洁婷 currently has a low profit base but ample room for cost improvement. The introduction of high-end products is expected to enhance profit elasticity. Despite a potential short-term decline in new consumer valuations, the recommendation rating for 豪悦 remains positive [3][7]. - Recent acquisitions include the purchase of 花王's Hefei factory and an intention to acquire 大王's Nantong factory, although the latter has not yet been completed. These acquisitions have expanded the company's proprietary brand product matrix and reinforced the dual-driven growth structure of OEM and proprietary brands [4].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 61.06 CNY, maintaining the rating [5][12]. Core Views - The company reported a revenue of 2.929 billion CNY for 2024, a year-on-year increase of 6.25%, while the net profit attributable to shareholders was 388 million CNY, a decrease of 11.65% [1]. - The acquisition of Hubei Sibao is expected to enhance the brand value and market share of the company's products, particularly the "Jieting" brand [3]. - The company is focusing on expanding its overseas market presence, particularly in Thailand, through a multi-channel strategy [3]. Financial Performance - In 2024, the company achieved revenues of 2.060 billion CNY from baby hygiene products, 0.552 billion CNY from adult hygiene products, and 0.232 billion CNY from other products, with respective year-on-year growth rates of 4.3%, -0.5%, and 57.6% [2]. - The gross margin for 2024 was 27.91%, an increase of 0.97 percentage points year-on-year, while the net margin was 13.23%, a decrease of 2.68 percentage points [11]. - The company expects revenues to grow to 3.921 billion CNY in 2025, representing a year-on-year growth of 33.84% [12]. Market Strategy - The company plans to leverage its production bases across China to enhance production efficiency and reduce logistics costs [3]. - The strategy includes deepening the local market presence in Thailand and expanding into surrounding countries [3]. Future Projections - The projected net profit for 2025 is 496 million CNY, with a year-on-year growth of 27.95% [12]. - The company anticipates a steady increase in revenue and profit over the next few years, with expected revenues of 4.392 billion CNY in 2026 and 4.969 billion CNY in 2027 [12].