Dencare, China’s Oral Care products Manufacturer, listed on SZSE Today
- Chaileedo Press
- Apr 10, 2023
- 2 min read
Dencare Oral, the first stock of anti-sensitivity toothpaste listed on the main board of Shenzhen Stock Exchange on 10th April. The company’s core brand " Lesening " has a market share of around 60% in the anti-sensitive toothpaste market.
On 10th April, Dencare (Chongqing) Oral Care Co., Ltd. (hereinafter referred to as Dencare Oral), the parent company of toothpaste brand Lesening, was listed on the main board of Shenzhen Stock Exchange.
Public information shows that Dencare Oral mainly engages in the research and development, production, and sales of oral care products, and owns oral care brands such as "Dencare", " Lesening ", and "Yiyan". The main products include oral hygiene products such as toothpaste, toothbrushes, and mouthwash, electric oral care products such as electric toothbrushes and water flossers, oral antibacterial ointments, oral antibacterial care liquids, as well as oral medical devices such as desensitizing agents for teeth. The core brand " Lesening " has a market share of around 60% in the anti-sensitive toothpaste narket, making it the leading brand in the Chinese anti-sensitive toothpaste market.
From a financial perspective, Dencare Oral has maintained a steady upward trend in revenue and profit. The revenue of Dencare Oral in 2022 reached 1.313 billion ($190.94 million), with an increase of 14.95% compared to 2021, while its net profit in 2022 was RMB 119 million ($17.31 million), a year-on-year increase of 13.25%.
From the perspective of revenue distribution, adult basic oral care products are the main source of revenue for the company. According to the prospectus, from 2019 to the first half of 2022, the revenue of the company's adult basic oral care products was RMB 886 million ($128.74 million), RMB 947 million ($137.72 million), RMB 1.026 billion ($149.2 million), and RMB 552 million ($80.27 million), accounting for 94.12%, 92.17%, 90.00%, and 90.38% of the main business income, respectively.
Compared with other companies in the same industry such as Yunnan Baiyao Group Co., Ltd, Liuzhou Liangmianzhen Co., Ltd, Perfect Group Corp., Ltd, and Lafang China Co., Ltd, Dencare Oral's operating income is also in the leading position. According to the prospectus, its toothpaste market share ranks fourth in the industry and second among domestic brands. Its core brand " Lesening " has maintained a stable offline retail sales market share of around 60% in the sub-segment of anti-sensitive toothpaste.
In addition, for the company's future development, it is expected that with further increases in sales volume and unit price of its main products, the company's operating income in the first quarter of 2023 will reach approximately RMB 326 million ($47.41 million) to RMB 343 million ($49.88 million), a year-on-year increase of 5.27% to 10.76%, the net profit attributable to the parent company is expected to be between RMB 31 million ($4.51 million) and RMB 33.5 million ($4.872 million), a year-on-year increase of 9.04% to 17.83%, and the profitability level will continue to steadily grow.
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