Core Viewpoint - The company, Hengan International, reported a significant decline in net profit by approximately 18% for the year ending December 31, 2024, primarily due to a decrease in overall gross profit and a competitive market environment [1][3]. Financial Performance - Revenue for 2024 was RMB 22.67 billion, a decrease of 4.62% compared to RMB 23.77 billion in 2023 [2][3]. - Operating profit fell by 15.7% to RMB 3.35 billion, attributed to the decline in overall gross profit [2][3]. - Net profit was approximately RMB 2.30 billion, down 17.93% from RMB 2.80 billion in the previous year [2][3]. - The proposed final dividend is RMB 0.70 per share, unchanged from the previous year [2]. Gross Margin and Profitability - Overall gross profit decreased by about 8.6% to approximately RMB 7.33 billion, with the gross margin dropping to 32.3% from 33.7% in 2023 [3][4]. - The company anticipates a cautious approach to promotional spending in 2025, with expectations for high-end products to continue showing significant growth [3]. Business Segment Performance Sanitary Napkin Business - Revenue from the sanitary napkin segment was RMB 5.68 billion, down 8.09% year-on-year [4][6]. - The market for sanitary products is highly competitive, with price promotions affecting sales [6]. - Despite the decline, the gross margin for sanitary napkins remained stable at approximately 63.7% [6]. Diaper Business - The diaper segment saw a slight increase in revenue to RMB 12.6 billion, up 0.5% from the previous year [11][12]. - The high-end product "Q MO" experienced significant growth, with sales reaching approximately RMB 5.48 billion, a year-on-year increase of 20.1% [11][12]. - The gross margin for the diaper business improved significantly to approximately 45.4% [12]. Tissue Paper Business - Revenue from the tissue paper segment was approximately RMB 134.22 billion, a decrease of about 2.4% [9]. - The gross margin for tissue paper products fell to approximately 18.9% from 21.7% in 2023, impacted by increased promotional expenses and raw material price fluctuations [9]. Wet Wipes Business - The wet wipes segment achieved a significant revenue increase of 30.7%, surpassing RMB 1.2 billion [10]. - The gross margin for wet wipes was the highest among tissue products at 50.7% [10]. Market Trends and Strategies - The domestic consumer market remains stable, but there is a need for improved consumer spending capacity and willingness [3]. - The company is focusing on high-quality personal care products and adapting to fragmented sales channels, with e-commerce and new retail sales accounting for 34.1% of total sales [3]. - The company plans to continue promoting high-end products and enhancing its market position in the face of intense competition [6][11].
生活用品竞争激烈，恒安国际去年净利降近18%，整体毛利跌约8.6%，卫生巾业务下滑8%