Cold acid Ling parent company wants to go public!What is the taste of "hot and hot and sour" for marketing?

At present, Dengkang's dental revenue still depends on the core product "cold sour spirit". The revenue of new tracks such as electric toothbrushes and tooth flushers is relatively low, but now the anti -sensitive selling point is not the mainstream of the market.

"Investment Times" researcher Zhuo Yi

"Cold and hot, sweet and sour, eat if you want to eat."

When it comes to Dengkang's shares, everyone may not be familiar with, but if you mention cold acid and the aforementioned slogan, it is a household name. In fact, Chongqing Dengkang Oral Care Products Co., Ltd. (hereinafter referred to as Dengkang's mouth) is the "cold acid" brand parent company. Recently, the company has also opened the capital market.

Following the successful listing of Yunnan Baiyao and two -sided needles, the parent company of Shick brand Wei Meizi submitted the prospectus to the Hong Kong Stock Exchange earlier this year. On June 6 this year, Dengkang's mouth officially submitted the prospectus and planned to be listed on the main board of the Shenzhen Stock Exchange. To achieve a comprehensive upgrade with the help of the capital market diversified financing channels.

In this IPO, Dengkang's mouth is intended to issue RMB ordinary shares not more than 43.0435 million shares, and 673 million yuan of funds to be raised. After deducting the issuance costs, it will invest in "smart manufacturing upgrades", "omni -channel marketing network upgrade and brand promotion after deducting issuance fees. "Oral Health Research Center" and "Digital Management Platform" and other construction projects.

As a time -honored company in Chongqing, in 2021, Deng Kang's mouth has achieved good results. In offline sales channels, the retail market share of toothpaste products accounts for 6.83%, and the sales market share accounts for 9.95%. The industry ranking ranks fourth fourth. , Local brand second. At the same time, the "cold acid" brand in the field of anti -sensitive toothpaste segments has continued to stabilize about 60%.

However, the researcher of "Investment Times" noticed that at present, Dengkang's dental revenue still depends on the core product "cold sour spirit" and has a low revenue in new track such as electric toothbrushes, tooth flusher, but now the anti -sensitive selling point is no longer the market. Mainstream, the market growth space ceiling is hidden. At the same time, the company also has the tendency to "heavy marketing and light development".

Revenue dependence on adult toothpaste

The prospectus shows that Dengkang Oral Department Chongqing Toothpaste Factory and Chongqing Department Store, Mechanical and Electrical Group, Chemical Medicine Group and New Century Department Store jointly launched a joint -stock company in 2001.

The company's main products cover oral cleaning care products such as toothpaste, toothbrush, mouthwash. At the same time, it also involves electric oral care supplies such as electric toothbrushes, tooth flushers, as well as dental medical device supplies such as dental dehydration agent. In addition to the "cold acid spirit" brand, Dengkang's mouth also has "Dengkang", as well as "medical research" of high -end oral care brands, "Beilele" for children's mouth care brands, and "budding" of high -end infant and children's mouth care brands.

In terms of business performance, in 2019, 2020, 2021 (hereinafter referred to as the reporting period), Dengkang's oral operating income was 944 million yuan, 1.03 billion yuan, and 1.143 billion yuan, respectively, with net profit of 63.16 million yuan, 95.24 million yuan, and 95.24 million yuan, and 95.24 million yuan and 95.24 million yuan and 95.24 million yuan and 95.24 million yuan and 95.24 million yuan and 95.24 million yuan. At 119 million yuan, revenue and net profit basically achieved stable growth.

From the perspective of the company's various types of products, adult toothpaste accounted for 82.14%, 81.92%, and 78.90%, respectively. It can be seen that nearly 80%of the company's revenue comes from adult toothpaste. Among the types of other products, the proportion of adult toothbrush revenue is about 10%, and children's toothpaste revenue accounts for more than 6%. Children's toothbrushes and dental medicine and cosmetic care share shall be less than 2%, and their overall revenue Depending on adult toothpaste.

From the perspective of further focus, Dengkang's oral adult toothpaste revenue contribution mainly comes from the "cold acid spirit" brand, but anti -sensitive toothpaste 2021 offline market share accounted for only 10.65%, and the industry ceiling was lower. For Dengkang's oral cavity, it may gradually get rid of the dependence on star products and obtain the market share of new oral nursing areas, and may be more favored by the market.

In 2021, the top ten manufacturers of toothpaste sales and sales market share (%)

Data source: Nielsen Research Data, Company Prospectus

Reinstate marketing lightly research and development

From the perspective of expenses, financial data shows that Dengkang's mouth has a tendency to "heavy marketing lightly".

During the reporting period, the sales expenses of Dengkang's mouth were 276 million yuan, 266 million yuan, and 279 million yuan, respectively, accounting for 29.24%, 25.80%, and 24.45%of operating income. The overall changes were not great.

However, its promotional expenses have risen from 38.76 million yuan in 2019 to 115 million yuan in 2021, which has increased year by year. This fee includes e -commerce expenses, promotional labor costs, displays for dumping fees, promotion materials, and promotional gift costs, etc., for product promotion and promotion.

Such a large -scale brand promotion has deepened the brand image of Dengkang's oral cavity to a certain extent, and also drives the growth of sales revenue of e -commerce channels. Data show that the proportion of its e -commerce model operating income has increased from 6.10%in 2019 to 13.17%of 2021, of course, there is still a small gap with the distribution model occupying 80%of the revenue.

From the perspective of the long period of time, the advertising fee for Dengkang's mouth has been close to 200 million yuan for nearly three years.

In comparison, the funds invested in R & D in Dengkang's mouth are far from the cost of sales. During the reporting period, the company's R & D expenses were 30.3 million yuan, 31.7 million yuan, and 35.53 million yuan, respectively, less than the zero investment of annual sales costs.

In addition, it is worth noting that in order to strengthen online channel construction and brand promotion, Dengkang's mouth intends to use the raised 370 million yuan of funds for omni -channel marketing network upgrades and brand promotion and construction projects. It is only 35 million yuan, and it is planned to invest in the construction project of the Oral Health Research Center. The proportion of expenses during Dengkang's dental period and its occupying operating income (10,000 yuan)

Data source: company prospectus

The debt repayment ability is not as good as the same

At the end of each period of the reporting period, Dengkang's dental asset -liability ratio was 49.92%, 47.75%, and 47.21%, respectively. The same period of the same industry was around 20%at the same time.

In this regard, Dengkang's mouth explained that the company mainly adopted the pre -payment and settlement settlement method, and gave dealers' commercial discounts and promotional support policies, resulting in the large -term payment, contract liabilities and other liabilities of each period, which were large, and receivables were received. The balance of accounts is small.

On other debt repayment indicators, Dengkang's mouth also has insufficient advantages.

During the reporting period, Dengkang's oral flow ratio ratio was 2.09 times, 1.83 times, and 1.68 times, respectively, and the average industry in the same industry during the same period was 4.13 times, 3.95 times, and 4.55 times. By and 1.22 times, the average industry in the same industry during the same period was 3.41 times, 3.40 times, and 3.88 times. The ratio of the oral flow rate and speed ratio of Dengkang showed a downward trend, and it was significantly lower than the level of the same industry during the same period, and the short -term debt repayment capacity was weak.

Dengkang oral debt repayment indicator situation

Data source: company prospectus

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