Yunnan Baiyao Group Co Ltd

DBS Vickers Securities issued a research note taking a positive view of Osotspa Public Company Limited, or OSP, after it announced a strategic partnership with Yunnan Baiyao to distribute premium toothpaste in Thailand. OSP will take on both the role of distributing the products in Thailand and serving as a production base through its Greensville factory to export to a total of six overseas markets. The research team said the partnership will help raise the utilization rate of the Greensville factory and increase revenue from distribution. Based on information in the osotspa delivery, the toothpaste is priced at 249 baht per tube. The Thai toothpaste market is worth 12 billion baht, growing an average of 6.3% per year, split into 75% through modern trade, 20% through traditional trade and 5% online. Competitors in the premium toothpaste market include Dentiste, Oral-B, Sensodyne, Fluocaril and Sparkle. The research team maintained its 2026E normalized profit forecast at 3.68 billion baht, up 5% year on year, and if the 2025 base year is adjusted under TAS 21, 2026E normalized profit would grow 53% year on year, while for 2027E it estimates normalized profit at 3.954 billion baht, up 8% year on year. It maintained its Buy recommendation and its target price of 20.00 baht, based on a 2026E core PER of 16x.

Osotspa Public Company Limited, or OSP, has announced a strategic partnership with Yunnan Baiyao, or YNBY, a leading health care and oral care brand from China, and the launch of Yunnan Baiyao toothpaste in Thailand. Osotspa will take on both the domestic distribution of the toothpaste and manufacturing through Greensville for export to overseas markets. The partnership is part of Osotspa's Premiumization strategy in its Health Care product group. Yunnan Baiyao selected Greensville as its manufacturing base after evaluating more than 10 factories in Thailand, Malaysia and Singapore. Greensville has already produced more than 600,000 tubes of Yunnan Baiyao toothpaste for export, covering six markets: Vietnam, Singapore, Malaysia, Hong Kong, the United States and Canada. For the Thai market, three premium fluoride toothpaste formulas will be launched: Gum Care, Enamel Repair and Shining White, in 105-gram sizes at a recommended price of 215 baht, going on sale through Osotspa e-commerce from September 20 and through Lotus's, Big C, Tops and Watsons. Ms. Sutipa Panyamahathap, Chief Executive Officer of the Home and Personal Care and Health Care business group at Osotspa Public Company Limited, said the partnership reflects Osotspa's capabilities that go beyond being a distributor. Mr. Ming Tang, Chief Executive Officer of YNBY International Limited, said Thailand is a key market for YNBY International and still offers clear growth opportunities, especially in the premium toothpaste market.

Yunnan Baiyao released its 2026 interim report, with total operating revenue of 21.884 billion yuan, up 2.95% year-on-year, and net profit attributable to the parent company of 3.701 billion yuan, up 1.88% year-on-year. Net cash inflow from operating activities was 4.106 billion yuan, up 3.66% year-on-year. The company's asset-liability ratio was 25.56%, gross margin was 30.06%, return on equity was 9.03%, and diluted earnings per share was 2.07 yuan. The number of shareholders was 189,400, and the top ten shareholders held 67.39% of the total share capital.

Yunnan Baiyao released its 2026 interim report. First-half net profit attributable to the parent was 3.7 billion yuan, up 1.9% year on year. Operating revenue was 21.88 billion yuan, up 2.9% year on year. Net profit attributable to the parent after deducting non-recurring items was 3.52 billion yuan, up 1.7% year on year. Net operating cash flow was 4.106 billion yuan, up 3.7% year on year. Earnings per share were 2.0743 yuan. In the second quarter, operating revenue was 10.28 billion yuan, down 1.3% year on year, and net profit attributable to the parent was 1.66 billion yuan, down 2.0% year on year. As of the end of the second quarter, total assets were 55.145 billion yuan, up 1.6% from the end of the previous year, and net assets attributable to the parent were 40.973 billion yuan, up 2.3% from the end of the previous year. The company said that as health demand rises and the traditional Chinese medicine industry develops with higher quality, its business has maintained growth momentum, and core products such as Yunnan Baiyao aerosol and adhesive bandages hold the top position in their relevant markets.