To The Moon

According to Zhitong Finance APP,China Merchants Securitiesresearch report was released stating that the firstChaoyun Group(06601) has a "Strong Buy" rating, and is expected to achieve revenue of RMB 1.86 billion, RMB 2.32 billion, and RMB 2.92 billion, respectively, and net profit attributable to the parent company of RMB 120 million, RMB 150 million, and RMB 190 million in 2022-24. In 2021, the company achieved revenue of RMB 1.77 billion, corresponding to a CAGR of 5.62% from 2017 to 2021. Currently, it has ample capital reserves, and the high dividend policy reflects business confidence. In terms of channels, a nationwide multi-channel sales network system has been established, with outstanding advantages in offline channels and a high growth rate in online channels for a long time; In terms of products, we have improved our product development capabilities through digitalization, and our product matrix has been continuously improved. As it continues to solidify its leading position in the home care industry and actively expands into two major tracks: personal care and pet care, it is expected to usher in a period of rapid growth.

The report states that the flexible employment industry has broad prospects, with three major demands driving the industry's rapid growth. The daily chemical industry is booming, and its three major sub-sectors have broad development potential. China's home care industry is showing a trend of large market and high growth rate. In 2019, the market size of China's home care market reached 45.8 billion yuan, and it is expected to grow to 69.4 billion yuan in 2024 at a CAGR of 8.7%. With the continuous increase in penetration rate in lower-tier cities, it has broad growth potential. In addition, consumers' demand for beauty and health has continued to increase in recent years. The size of China's personal care market reached 458.7 billion yuan in 2019, and the corresponding CAGR is expected to be 8.9% from 2020 to 2024. In addition, the development of the pet economy has helped the pet care industry enter a period of rapid growth, and under the highly fragmented pattern, leading domestic enterprises have great development potential in the future.

The bank mentioned that the company adheres to a multi-brand, multi-category strategy, builds an omnichannel sales network, and continuously improves its product matrix. We strategically focus on three major categories: home care, personal care, and pet care, and have created eight core brands with excellent brand incubation capabilities. Having cultivated the home care and personal care industry for many years, we have a significant first-mover advantage; In recent years, the company has continuously incubated new brands in the pet care sub-sector, resulting in rapid business development. At the same time, the company has also built a strong nationwide multi-channel sales network system, with outstanding advantages in offline distribution channels and high growth in online channels. By building an internal and external linkage R&D platform, the company has digitally improved its product R&D capabilities and continuously improved its product matrix.