Freedom Point Probiotic PRO+ Series Officially Launched
On May 20, the company officially announced the launch of the Free Point Probiotic PRO+ series. At the same time, WeChat Video and other platforms simultaneously launched the 520 special “Freedom More Love” promotional video to create brand momentum with the theme of “Love”. We are optimistic about the release performance of subsequent new products.
This product has been upgraded from the following aspects, and the product functionality and experience are better:
1) 5 times probiotics, improving intimate microbiota for 3 months. Patented female probiotics LA88+N13+ prebiotics are added to the surface layer to promote beneficial bacteria and inhibit harmful bacteria; 2) Luxurious silk cares for sensitive skin in the V zone, adding natural silk to the surface layer, zero sensitivity and luxurious experience; 3) Ergonomic design, dynamic fit and extremely thin absorption, 3D superconducting skin-friendly surface curve fit design, 0.07cm ultra-thin absorbent core.
Optimistic about the company's long-term product structure optimization to improve profitability
The company continues to focus on the sanitary napkin series products and continuously optimizes the product structure. Among them, the health series such as probiotics are the core products launched by the company in recent years. The company focuses on resource investment. Since its launch in the middle of last year, the sales share has continued to grow. We expect this product iteration to further open up room for single product growth; in addition, the successful promotion of probiotics has good reference significance for other product lines.
The comprehensive gross margin of 24Q1 Company and the gross margin of Liberty Point products were 54.4% and 57.7%, respectively, up 7.5 pct and 5.8 pct from the previous year, respectively. Product structure optimization continued to drive improvement in profitability.
Optimistic about new products to enable e-commerce and peripheral regions to grow
In 23 years, the company's free point sanitary napkin sales ranked first among the sanitary napkin brands on the Douyin platform for many months, with good results. The 24Q1 e-commerce channel revenue was +150.5% year-on-year. We expect Q2 to continue to increase. Among them, rapid iterative product upgrades have laid a good foundation for e-commerce.
On the one hand, the company's investment in resources on the brand side and the scale potential of Douyin have a certain spillover effect on other e-commerce platforms. The organizational style of each e-commerce platform continues to be iteratively upgraded, boosting the increase in sales share.
On the other hand, the company uses e-commerce brand investment potential and data resources to analyze the characteristics and habits of consumers in various regions, formulate more targeted marketing strategies, and achieve wider market coverage. At the same time, it also focuses on changes in channel structure between regions to further effectively expand marketing channels.
Maintain profit forecasts and maintain “buy” ratings
The company's health products are strong, and new products are expected to contribute to growth and continue to empower peripheral provinces and e-commerce. We expect revenue to continue to grow at a high rate. We maintain profit forecasts. We expect net profit to mother of 3.2/4.0/50 billion for 24-26, respectively, and PE 32/26/20X respectively, maintaining a “buy” rating.
Risk warning: New product development falls short of expectations, peripheral expansion progress falls short of expectations, online competition intensifies, etc.