Summary of Baia Co., Ltd. Conference Call Company Overview - **Company**: Baia Co., Ltd. - **Industry**: Sanitary products, specifically focusing on women's hygiene products Key Points and Arguments Recovery from Pandemic Impact - Baia Co., Ltd. has restored platform data to pre-pandemic levels through increased expenditure and adjusted marketing strategies, with Douyin leading, followed by Tmall and Pinduoduo [2][3] - The company plans to leverage the 618 shopping festival to eliminate the impact of two rounds of the pandemic and normalize e-commerce operations [3][27] Offline Business Performance - The offline business has been less affected by the pandemic, maintaining stable operations and expanding nationally as planned [5][7] - Seasonal sales fluctuations were noted, with strong performance during the Women's Day and Double Eleven events, while the second and third quarters are expected to be relatively flat [5][6] Inventory Management - The overlap of Women's Day and the 315 public opinion incident affected distributor inventory levels, but overall inventory has gradually returned to normal [5][6] - The company maintains low inventory in new regions to control risks, while the Sichuan-Chongqing region has higher inventory due to faster sales [6][7] Market Competition - The sanitary napkin market is highly competitive, with some brands exiting and new entrants emerging, leading to a revised expectation for overall e-commerce growth [10][11] - Consumer loyalty is strong, making it difficult for new brands to gain traction quickly [10] Product Differentiation - Baia Co., Ltd. emphasizes product differentiation through technical specifications and added value, such as probiotic products and organic cotton lines [11][12] - The company plans to continue iterating existing products and launching new ones annually to meet consumer demand [12][13] Channel Strategy - The company is focusing on offline channel expansion, particularly in new regions, while maintaining a strong online presence [4][8] - The profitability of various channels varies, with Douyin currently being the only loss-making channel, while offline channels are expected to achieve a net profit margin of around 20% [15][22] Regional Performance - The Sichuan-Chongqing region saw a 30% year-on-year growth in Q1, with expectations for high single-digit growth for the year [18] - The company anticipates that the Guangdong region will achieve breakeven in the second half of the year, with continued high growth [17] Future Outlook - The company aims for a 30% annual growth rate, with a revenue target exceeding 4 billion yuan for the year [27] - The 618 shopping festival is seen as a critical period for recovery, with plans to reassess annual targets post-event [27] Challenges and Risks - The ongoing U.S.-China tariff situation may impact raw material costs, but the company has made preparations to mitigate these effects [20] - The competitive landscape is expected to remain challenging, particularly with the entry of new brands and the need for effective marketing strategies [10][25] Conclusion - Baia Co., Ltd. is strategically positioned to recover from pandemic impacts and capitalize on market opportunities through a combination of online and offline strategies, product innovation, and careful inventory management. The company remains optimistic about achieving its growth targets despite competitive pressures and market challenges.

24&25Q1 消费板块综述：新消费方向崛起 [Table_Industry] 轻工制造 [Table_ReportDate] 2025 年 05 月 16 日 证券研究报告 行业研究 [Table_ReportType] 行业专题研究（普通） | [Table_StockAndRank] 轻工制造 | | | --- | --- | | 投资评级 | 看好 | | 上次评级 | 看好 | [Table_Author] 姜文镪 新消费行业首席分析师 执业编号：S1500524120004 邮 箱： jiangwenqiang@cindasc.com 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦 B座 邮编：100031 [Table_Title] 24&25Q1 消费板块综述：新消费方向崛起 [Table_ReportDate] 2025 年 05 月 16 日 本期内容提要: 康耐特光学、明月镜片、博士眼镜等主业表现稳健、产品结构持续优化， 明月、博士 24Q4/25Q1 收入同比+1%/+3%、+6%/+10%，归母净利润 +13%/+ ...

Summary of Conference Call Company and Industry - The conference call pertains to a company in the hygiene products industry, specifically focusing on sanitary products. Key Points and Arguments 1. **Financial Performance Overview** The company reported that the annual financial data is consistent with the preliminary report, with total revenue for the year reaching 3.04 billion yuan, reflecting a growth of approximately 5% compared to the previous year [1][2][3]. 2. **Quarterly Revenue Insights** The company achieved around 50 million yuan in revenue for Q3 and 120 million yuan for Q4, with a significant contribution from new products, particularly in the sanitary product segment [2]. 3. **Gross Margin Improvement** The gross margin for the year improved by 2.9 percentage points compared to the previous year, attributed to product structure optimization and overall growth in product margins [3]. 4. **Net Profit Growth** The net profit for the year was reported at 288 million yuan, marking a year-on-year increase of 20.7%, which aligns with expectations [4]. 5. **Impact of 3.15 Incident** The company faced challenges due to a public relations incident around March 15, but it has implemented a structured response involving multiple teams to manage the situation effectively [5][8]. 6. **E-commerce Performance** E-commerce revenue for the year reached 1.52 billion yuan, showing significant growth, particularly in online sales channels [2]. 7. **Market Expansion Strategy** The company plans to continue expanding its offline channels across the country, expecting sustained growth in revenue from these regions [3]. 8. **Consumer Demand Trends** There is an increasing consumer demand for health and safety features in hygiene products, leading to a shift in product offerings and marketing strategies within the industry [9][10]. 9. **Competitive Landscape** The industry remains highly competitive, with adjustments in marketing strategies among competitors following the 3.15 incident. The company aims to maintain its market position through innovation and brand strength [10][11]. 10. **Supply Chain and Production Management** The company emphasizes its self-production capabilities, which enhance quality control and cost management, particularly during promotional periods [33]. 11. **Future Product Development** The company is focusing on expanding its probiotic product line and plans to launch new products in the upcoming quarters [22][32]. 12. **Long-term Industry Outlook** The company believes that while short-term fluctuations may occur, the long-term outlook for leading brands in the hygiene product sector remains positive due to increasing consumer standards [18][19]. Other Important but Possibly Overlooked Content - The company has established a proactive approach to managing public relations crises, learning from past experiences to improve response strategies [5][14]. - There is a focus on enhancing internal processes and quality management to prevent future incidents, indicating a commitment to higher operational standards [40]. - The company is also exploring ways to assist distributors in managing expired products to prevent them from re-entering the market [20].

Investment Rating - The report suggests that the sanitary napkin industry is in a product-driven era, with leading brands generally adopting a big product strategy [1]. Core Insights - The key to successful big products lies in differentiated positioning and continuous iteration. Differentiated positioning focuses on advanced skin feel, safety, and enhanced efficacy as critical competitive factors for future sanitary napkin brands. Continuous iteration is essential for extending the lifecycle of big products [2]. - The penetration rate of sanitary napkin products is nearing its peak, with limited growth potential in volume. According to Euromonitor, the CAGR for the Chinese sanitary napkin industry from 2024 to 2028 is projected to be 3.5%, driven entirely by price increases [1][2]. - Leading brands are adopting a big product strategy primarily due to intense industry competition, consumer demand for functional products, and the high-frequency consumption characteristics of sanitary napkins [1]. Summary by Sections - **Differentiated Positioning**: The differentiation in sanitary napkins is currently reflected in four dimensions: skin feel, shape, safety, and efficacy. Advanced skin feel, safety, and enhanced efficacy are identified as key selling points for future competition among brands [2]. - **Continuous Iteration**: Product iteration is crucial for the longevity of big products. Iteration typically involves upgrading existing innovations and expanding into new innovation dimensions. For instance, the "Free Point Probiotics" series represents an upgrade in efficacy, while "Sofy Super Sleep" expands its innovation to include antibacterial properties [2]. - **Revenue Potential**: It is estimated that the largest single product series from leading sanitary napkin brands accounts for at least 30% of their revenue, potentially reaching up to 4 billion yuan [2].