Chongqing Baiya Sanitary Products Co.Ltd(003006) (003006)
Key investment points:
Company profile: a leading enterprise of disposable sanitary products in Sichuan and Chongqing, with its own brand as the core. Founded in November 2010, the company is mainly engaged in the R & D, production and sales of disposable sanitary products, including sanitary napkins, baby diapers, adult incontinence products and other categories. With its own brand business as the core, the company has “free point”, “Ni Shuang”, “Haozhi”, “tannin” and other brands with unique style and distinct personality. Based in Chongqing, the company is a leading enterprise of disposable sanitary products in Sichuan and Chongqing. In recent years, benefiting from the revenue growth of independent brands and medium and high-end products, the company’s revenue and net profit have achieved rapid growth, and the growth rate of net profit continues to be higher than that of revenue.
Industry analysis: increased penetration and consumption upgrading drive both volume and price increases, and the rise of domestic products is accelerating. In recent years, the scale of China’s sanitary napkin Market has grown steadily, the demand for baby diapers and adult incontinence products has increased, and the market penetration has gradually increased. With the continuous strengthening of personal health care awareness, under the background of consumption upgrading, health care products are developing towards differentiation and high-end. From the perspective of competition pattern, among the top 10 enterprises in sanitary napkin Market, Chinese enterprises account for half of the country, foreign brands in the field of baby diapers still occupy a dominant position, and domestic brands catch up quickly.
Optimize the product structure and continue to make efforts in private brand construction, R & D and innovation. In recent years, the company has taken the initiative to optimize and adjust the product structure, strengthen the R & D and marketing expansion of medium and high-end products, and expand the scale of medium and high-end products with high added value. The average sales price of main products shows an increasing trend year by year. For the free point sanitary napkin positioned as a medium and high-end brand, the company focuses on the promotion of convenient and close fitting pants structure products, sleeping pants series and natural, healthy and organic organic pure cotton series. The company’s independent brand product revenue has increased steadily, and its contribution to the growth of total revenue has increased year by year.
Intensive cultivation of Sichuan and Chongqing and accelerating the expansion of the national market; Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels make concerted efforts and multi-channel coordinated development. According to the development degree and characteristics of different regional markets, the company adopts differentiated marketing mode, adapts measures to local conditions and coordinated development, and expands orderly in the national market; Continue to strengthen channel construction, improve product penetration and coverage, maintain steady growth in offline channel revenue, and achieve rapid improvement in e-commerce channel revenue.
Profit forecast, valuation analysis and investment suggestions: the company is the only A-share enterprise with its own brand sanitary napkins and baby diapers as its core business. The future growth point lies in the optimization of product matrix to medium and high-end, the continuous improvement of independent R & D strength, the popularity and influence of independent brands, which is expected to drive the further improvement of overall profitability; Accelerate the nationwide coverage of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels, break through the ceiling of the existing market share, and move from the southwest to the whole country, which is expected to drive the sales scale to a new level. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 237 million, RMB 304 million and RMB 372 million respectively, with a year-on-year increase of 29.64%, 28.68% and 22.29% respectively. EPS will be RMB 0.55/share, RMB 0.71/share and RMB 0.86/share respectively, corresponding to the closing price of RMB 16.98/share on November 30, 2021. PE from 2021 to 2023 will be 30.97, 24.07 and 19.68 times, The first coverage is given a “buy” rating.
Risk tip: macroeconomic growth is less than expected; Increasing market competition; The market expansion outside the advantageous region is less than expected; The promotion and sales of new products do not meet expectations; Rising prices of raw materials; Sales channel management and development risk, etc.
