To The Moon

Zhitong Finance APP learned that,China Merchants SecuritiesReleased a research report saying that the firstChaoyun Group(06601) "Highly Recommended" rating, it is expected to achieve revenue of 1.86/2.32/2.92 billion yuan and net profit attributable to the parent of 1.2/1.5/190 million yuan in 2022-24. In 2021, it achieved revenue of 1.77 billion yuan, corresponding to a CAGR of 5.62% in 2017-21. At present, the capital reserves are abundant, and the high dividend policy reflects business confidence. In terms of channels, the Company established a national multi-channel sales network system, with outstanding advantages in offline channels and high growth rate in online channels for a long time. In terms of products, we improved our product research and development capabilities through digitalization, and continued to improve our product matrix. With the continuous consolidation of the leading position in the home care industry and the active layout of the two major tracks of personal care and pet care, it is expected to usher in a period of rapid growth.

According to the report, the sunrise industry of flexible employment has a broad prospect, and the three major demands drive the rapid growth of the industry. The daily chemical industry is prosperous, and the three sub-tracks have broad development space. China's home care industry is showing a trend of large market + 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 at a CAGR of 8.7% in 2024. With the continuous improvement of the penetration rate of low-tier cities, it has broad growth potential. In addition, in recent years, consumers' demand for beauty and health has continued to increase. In 2019, China's personal care market reached 458.7 billion yuan, and the corresponding CAGR is expected to be 8.9% in 2020-24. In addition, the development of pet economy has also helped the pet care industry to enter a period of rapid growth. Under the highly dispersed pattern, domestic leading enterprises have great room for development in the future.

The bank mentioned that the company adheres to the multi-brand and multi-category strategy, builds an omni-channel sales network, and continues to improve the product matrix. Strategically focusing on the three categories of home care, personal care and pet care, we will build eight core brands with excellent brand incubation capabilities. In the home care and personal care industry for many years, the first-mover advantage is significant; In recent years, new brands have been continuously incubated in the pet care segment, and the business has developed rapidly. At the same time, the Company has also built a strong national 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.