【券商聚焦】天风证券首予朝云集团(06601)买入评级 目标价13港元

[brokerage focus] Tianfeng Securities is the first to buy a rating target price of HK $13 for Chaoyun Group (06601).

鳳凰網港股 ·  Jul 26, 2021 10:53

Phoenix New Media Hong Kong stocks | Tianfeng Securities issued a research report that the bank was first given a buy rating by Chaoyun Group (06601) with a target price of HK $13. The reasons are as follows:

Chaoyun Group is a leading domestic home care enterprise, with 4 home care brands (Chaowei, Beibeijian, New Zealand, Weiwang), one personal care brand (Runzhisu) and two pet care brands (stubborn tail, Deshi). In terms of retail sales from 15 to 19, the company ranked fourth in China's home care industry (local enterprises ranked third), with a market share of 6.3% in 2019, of which the market share of insecticidal and mosquito repellent was the first for five consecutive years. The company, formerly known as Anfu Chaowei, founded by Libai Group founder Chen Kaixuan and Mr. Chen Kachen, is now 74.25% owned by the Chen family, providing strong shareholder support.

The management has multi-field professional background and resource integration ability, and the underlying genes of multi-category operation and continuous innovation lead the company forward steadily. The management team brings together elites from Jiaqing, cosmetics, mother and child, pets, e-commerce and other industries. CEO Chen Danxia has more than 14 years of experience in the consumer goods industry, and has served as a subsidiary of Chaoyun Group, Libai and Kaisheng. New Gaozi director position. The company has a mature brand incubation system and a thousand people thousand face marketing system, successfully incubated Beibeijian, Weiwang, Runzhisu, stubborn tail and other industry leading brands, in the local daily chemical enterprises have the largest number of sub-brands and sub-categories, 2021Q1-Q3 new product revenue contribution of up to 17%.

Deep sinking national sales network, online and offline full channel coverage. The company's sales channels go deep into 1-5 urban and rural areas, with more than 1200 offline exclusive distributors, covering about 620000 distributor outlets and about 11000 retail outlets. The online business has developed rapidly, covering 26 self-owned online stores, and the share of revenue contribution has increased to 17% in 2020. The products cover 24 overseas countries and regions, and the revenue contribution of Libai Group is stable at about 20%.

Future performance-driven: home-personal care is in the ascendant, mid-and high-end products drive unit price rise. According to the forecast data of Burning knowledge Consulting, the size of the home / personal care market in 2024 is expected to be 694 / 701.4 billion yuan respectively, and the household cleaning / air care category is growing rapidly. In 19-24, it is estimated that the CAGR will be 11.8% and 7.8% respectively, and the trend of electronic upgrading of insecticidal and mosquito repellent products is obvious. The company has insight into the forefront of the industry, the speed of new product incubation is accelerated, and under the iteration of product upgrade, the increase of multi-product portfolio-unit price is expected to increase profits.

Enter the pet track, multi-brand and multi-category development imagination space is considerable. The pet care market will grow to 15.6 billion in 2024, with CAGR of 17.8 per cent in 19-24, according to projections from cautionary consultancy. At present, the company has launched "stubborn tail" and "Deshi" two major pet care brands, Taobao shows that "stubborn mouth" cat food 21Q2 has been launched, is expected to use e-commerce channels to quickly occupy the market. With the continuous improvement of pet penetration in China and the gradual high-end of the cat food market, the growth space of stubborn series products is worth looking forward to.

The strong underlying infrastructure and the proven strength of the excellent management team support the accelerated development of new business. The company has internal and external innovation R & D system and comprehensive digital capability, internal multi-brand operation ability and continuous innovation of the underlying genes, external has strong shareholder support, R & D / production / sales multi-dimensional synergy is obvious, the company has a high success rate of re-incubating new categories and new brands.

The bank expects the 21-23 net profit to be 2.88 yuan 3.57 / 464 million yuan respectively, an increase of 28.5%, 24.3% and 29.9% over the same period last year. Taking into account the company's mature brand incubation system and efficient linkage of innovative R & D system, as well as omni-channel coverage of the deep sinking national sales network advantages.

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