Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 1.659 billion yuan for 2024, representing a year-on-year increase of 17.56%, and a net profit of 182.21 million yuan, marking a turnaround from losses [2] - In Q1 2025, the company achieved a revenue of 329 million yuan, a decrease of 14.4% year-on-year, with a net profit of 22.23 million yuan, down 46.71% year-on-year [2] - The company expects continued growth in its self-owned brand revenue, particularly in the overseas market, which saw a revenue increase of 29.1% year-on-year in 2024 [5] Summary by Sections Financial Performance - 2024 revenue: 1,659.04 million yuan, with a year-on-year growth of 17.56% [3] - 2024 net profit: 182.21 million yuan, with a year-on-year growth of 1742.81% [3] - Q1 2025 revenue: 329 million yuan, down 14.4% year-on-year [2] - Q1 2025 net profit: 22.23 million yuan, down 46.71% year-on-year [2] Profit Forecast and Valuation - Forecasted revenues for 2025, 2026, and 2027 are 2,012.76 million yuan, 2,370.97 million yuan, and 2,680.31 million yuan respectively, with year-on-year growth rates of 21.32%, 17.80%, and 13.05% [3] - Forecasted net profits for the same years are 193.92 million yuan, 231.48 million yuan, and 266.29 million yuan, with year-on-year growth rates of 6.43%, 19.36%, and 15.04% [3] - Corresponding EPS for 2025, 2026, and 2027 are projected to be 0.78 yuan, 0.93 yuan, and 1.07 yuan [3] Market and Product Insights - The company has seen strong growth in its self-owned brands, with a 33% increase in revenue from these brands in the domestic market [5] - The overseas market's gross margin improved to 28.94%, up 11.04 percentage points year-on-year, driven by increased demand and production capacity utilization [5] - The company plans to expand its product offerings, including high-end pet food, and enhance its distribution channels both online and offline [5]

Summary of Petty Co. Conference Call Company Overview - **Company**: Petty Co. - **Industry**: Pet Food Industry Key Points and Arguments Domestic Brand Performance - In Q1 2025, domestic brands maintained over 30% growth, with the Jueyan brand exceeding 50% growth, indicating strong domestic market momentum [2][4][3] - The company aims to sustain over 30% growth for domestic brands in 2025, with Jueyan being a major revenue contributor [3][18] Impact of U.S. Tariffs - Due to U.S. tariff barriers, Petty Co. has shifted some U.S. orders to production in Vietnam and Cambodia to avoid high tariffs, with expected production capacity utilization reaching 8,000 tons [2][4][5] - In 2024, revenue from exports to the U.S. was approximately 1.37 billion yuan, with Vietnam and Cambodia projected to generate 700-800 million yuan and 500-600 million yuan in revenue, respectively [2][9] Strategic Adjustments - The company is actively responding to changes in trade dynamics by expanding domestic product categories and introducing New Zealand brands, which are expected to significantly contribute to revenue and profit in the second half of the year [2][6][7] - The New Zealand grain project is anticipated to transition from losses to stable profits as production capacity increases, with a projected utilization rate of 20%-30% in 2025, potentially reaching 80%-90% in 2-3 years [2][7][19] Market Diversification - Petty Co. is expanding into non-U.S. markets such as Canada, the EU, Japan, and South Korea to mitigate operational risks and stabilize existing overseas ODM clients [2][12][24] - The company is focusing on enhancing its market competitiveness through a diversified product matrix and online-offline channel strategies [8][9] Financial Performance - The company reported a consolidated revenue of 1.66 billion yuan in 2024, with domestic brand revenue nearing 290 million yuan [4] - Despite a slight decline in overseas export data in Q1 2025 due to tariff impacts, revenue is expected to rise as overseas production capacity increases [5][12] Production Capacity and Profitability - The Cambodian factory is expected to reach full production capacity, generating revenue of 400-500 million yuan with a profit margin of around 10% [21] - The Vietnamese factory's expansion is limited, with a projected increase of 2,000 tons expected to conclude by the end of the year [22] Customer Relations and Market Trends - The company is observing stable customer order situations, with a slight increase in orders for Q2 2025 compared to the previous year [11][12] - The U.S. pet food market is experiencing stable demand despite high inflation, with a focus on cost-effective and innovative products [10] Pricing Strategy - The company may consider price adjustments in response to high tariffs, but any changes will depend on actual market conditions [14][15] Future Outlook - Petty Co. anticipates positive growth in 2025, primarily driven by the main grain category, with a focus on expanding product offerings and channel strategies [18][26] - The New Zealand factory is expected to ramp up production significantly in 2025, contributing to overall revenue growth [19][20] Conclusion - Petty Co. is strategically navigating the challenges posed by U.S. tariffs and global trade dynamics while focusing on domestic growth and international market expansion, positioning itself for sustainable long-term profitability and market competitiveness [2][12][13]

国投证券股份有限公司关于 佩蒂动物营养科技股份有限公司 向不特定对象发行可转换公司债券 持续督导之保荐总结报告书 国投证券股份有限公司（以下简称"国投证券"或"保荐人"）作为佩蒂动 物营养科技股份有限公司（以下简称"佩蒂股份"、"公司"或"发行人"）向不 特定对象发行可转换公司债券的保荐人，持续督导期至 2024 年 12 月 31 日。目 前，持续督导期已满。根据《证券发行上市保荐业务管理办法》《深圳证券交易 所上市公司自律监管指引第 13 号——保荐业务》等法律法规、规范性文件的有 关规定，出具本保荐总结报告书。 一、保荐人及保荐代表人承诺 （一）保荐总结报告书和证明文件及其相关资料的内容不存在虚假记载、误 导性陈述或重大遗漏，保荐人及保荐代表人对其真实性、准确性、完整性承担法 律责任。 （二）本机构及本人自愿接受中国证监会对保荐总结报告书相关事项进行的 任何质询和调查。 （三）本机构及本人自愿接受中国证监会按照《证券发行上市保荐业务管理 办法》等有关规定采取的监管措施。 | 公司名称 | 佩蒂动物营养科技股份有限公司 | | | | --- | --- | --- | --- | | 注册资本 | 元人 ...

Core Viewpoint - The company reported strong financial performance for 2024, with significant growth in revenue and profit driven by its focus on self-owned brands, despite a decline in domestic sales due to strategic adjustments [1][2]. Financial Performance - For 2024, the company achieved revenue of 1.66 billion and a net profit of 180 million, representing year-on-year growth of 17.6% and 1742.8% respectively [1]. - In Q1 2025, revenue decreased to 330 million, with a net profit of 20 million, showing a decline of 14.4% and 46.7% year-on-year [1]. - The earnings per share (EPS) for 2024 and Q1 2025 were 0.75 and 0.09 yuan per share respectively [1]. Market Dynamics - The company’s overseas market sales accounted for 82.6% of total revenue, with a 33% increase in self-owned brand revenue, particularly a 52% increase for the brand "Jueyan" [2]. - The company’s overall gross margin improved by 10.2 percentage points to 29.4% in 2024, with overseas markets contributing an 11.0 percentage point increase to 28.9% [2]. Cost and Margin Analysis - In Q1 2025, the company faced short-term pressure on performance due to increased sales and management expenses, with expense ratios rising by 3.8 and 3.0 percentage points to 8.5% and 9.3% respectively [2]. - The gross margin for Q1 2025 increased by 4.3 percentage points to 28.6% year-on-year [2]. Strategic Initiatives - The company plans to launch new high-end products under the "Jueyan" brand, including freeze-dried snacks and premium cat food, to enhance brand visibility and growth [3]. - The company anticipates that the impact of tariffs will be manageable, with a shift of U.S. customer orders to Southeast Asian factories [3]. Future Projections - Revenue forecasts for 2025-2027 are projected at 1.88 billion, 2.10 billion, and 2.35 billion respectively, with net profits expected to be 180 million, 217 million, and 259 million [3]. - The projected price-to-earnings (PE) ratios for 2025-2027 are 19.89, 16.47, and 13.80 times [3].

Investment Rating - The report maintains a "Strong Buy" rating for Petty Co., Ltd. [5] Core Views - The company achieved significant growth in 2024, with operating revenue reaching 1.659 billion yuan, a year-on-year increase of 17.56%, and a net profit attributable to shareholders of 182.21 million yuan, a year-on-year increase of 1742.81% [1][3] - In Q1 2025, the company experienced revenue fluctuations due to tariff disturbances and increased expenses, with operating revenue of 329 million yuan, a year-on-year decrease of 14.40%, and a net profit of 22 million yuan, a year-on-year decrease of 46.71% [1][2] - The company is focusing on expanding its overseas market, particularly in the U.S., and has successfully transferred all U.S. customer orders to Southeast Asian factories [2][3] Summary by Sections Financial Performance - In 2024, the company reported overseas sales of 1.371 billion yuan, a year-on-year increase of 29.12%, with an overseas business gross margin of 28.94%, up 11.04 percentage points from 2023 [1] - The company’s expense ratio decreased to 15.45% in 2024, down 1.99 percentage points from 2023, contributing to the overall performance improvement [1] Domestic Market and Brand Development - In 2024, domestic sales revenue was 288 million yuan, with a focus on self-owned brands leading to a 33% increase in self-owned brand revenue, particularly the "Jueyan" brand, which grew by 52% [2] - The company plans to expand its self-owned brands into more platforms and enhance its offline presence in mid-to-high-end supermarkets [2] Profit Forecast - The company’s projected net profits for 2025, 2026, and 2027 are 199.07 million yuan, 232.75 million yuan, and 285.67 million yuan, respectively, with corresponding EPS of 0.79, 0.92, and 1.13 yuan [3][4]

Core Insights - The company reported a significant increase in revenue and net profit for 2024, with operating income reaching 1.659 billion and a year-over-year growth of 17.56%, while net profit attributable to shareholders soared to 182 million, reflecting a staggering year-over-year increase of 1742.81% [1] - In Q1 2025, the company experienced a decline in revenue and net profit, with operating income at 329 million, down 14.40% year-over-year, and net profit at 22 million, down 46.71% year-over-year [1][2] Financial Performance - For 2024, the company achieved overseas sales of 1.371 billion, marking a year-over-year increase of 29.12%, with an overseas business gross margin of 28.94%, up 11.04 percentage points from 2023 [1] - The company’s expense ratio for 2024 was 15.45%, a decrease of 1.99 percentage points compared to 2023, contributing to the overall high growth in performance [1] Market Expansion and Strategy - The company is actively expanding its market presence, particularly in overseas markets such as the United States, leading to a notable increase in customer orders and enhancing its risk resilience [1][2] - The domestic market saw a revenue decline to 288 million in 2024, as the company focused on its own brands and reduced agency business, although self-owned brand revenue grew by 33%, with the "Jueyan" brand increasing by 52% [2] Product Development and Brand Strategy - The company plans to extend the "Jueyan" brand from high-end dog food to high-end cat food, continuously launching new specialty products [2] - The company is also preparing to launch its New Zealand staple food "SmartBalance" and is expanding its distribution channels to include more platforms and high-end supermarkets [2] Profit Forecast and Investment Rating - The company is expected to maintain stable overseas order volumes despite tariff disruptions, with domestic self-owned brands projected to sustain high growth through new product launches [3] - Forecasted net profits for 2025-2027 are 199 million, 233 million, and 286 million respectively, with EPS of 0.79, 0.92, and 1.13, and PE ratios of 18, 15, and 13 times, maintaining a "strong buy" rating [3]

Core Viewpoint - The company reported strong financial performance for 2024, with significant revenue growth and a return to profitability, driven by overseas market demand recovery and rapid growth of its own brand products [1][2]. Financial Performance - In 2024, the company achieved revenue of 1.659 billion yuan, a year-on-year increase of 17.56%, and a net profit attributable to shareholders of 182 million yuan, with a basic EPS of 0.75 yuan [1]. - The fourth quarter of 2024 saw a revenue of 336 million yuan, a decline of 32.06% year-on-year, while net profit was 27 million yuan, an increase of 51.71% year-on-year [1]. - For the first quarter of 2025, revenue was 329 million yuan, down 14.40% year-on-year, with a net profit of 22 million yuan, a decrease of 46.71% year-on-year [1]. Segment Performance - Revenue from various product categories in 2024 included: - Animal skin chew toys: 504 million yuan (+19.14%) - Plant-based chew toys: 607 million yuan (+43.68%) - Meat snacks: 402 million yuan (+26.62%) - Staple food: 118 million yuan (-43.64%) - Gross margins for these categories were 25.28%, 31.86%, 33.2%, and 24.81%, respectively, with overall gross margin at 29.36%, up 10.2 percentage points from the previous year [1]. Overseas Market Growth - The overseas market generated revenue of 1.37 billion yuan in 2024, a year-on-year increase of 29.12%, with a gross margin of 28.94%, up 11.04 percentage points [2]. - Growth in overseas orders and increased capacity utilization in factories in Vietnam and Cambodia were key drivers of revenue and profit growth [2]. - The company plans to expand its non-U.S. customer base and enhance service capabilities to mitigate risks from tariffs and international trade policies in 2025 [2]. Domestic Market Performance - Domestic market revenue was 288 million yuan in 2024, a decline of 17.56%, with a gross margin of 31.72%, up 8.04 percentage points [2]. - The decline in domestic revenue was attributed to strategic adjustments, with self-owned brands contributing significantly, showing a 33% growth in 2024, particularly the "Jueyan" brand, which grew by 52% [2]. Profit Forecast - The company is projected to achieve net profits of 206 million yuan, 256 million yuan, and 278 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.83, 1.03, and 1.12 yuan [3].

关税背景下加快国内自主品牌进度。目前美国出口订单发货量减少，持续观察Q3-Q4 情况。公司对国 内自主品牌给予厚望，海外业务在关税背景下承压，国内市场会抓紧发力，爵宴5 月会继续推出新品配 合618 大促。 盈利预测与投资评级：考虑到海外业务存在不确定，我们略下调2025-2026 年盈利预测，预计2025-2027 年公司归母净利润分别为 1.5/2.5/3.1亿元（此前2025-2026 年分别为2.3/2.9 亿元），同 比-16%/+62%/+23%，对应PE 为23/14/12X。维持"买入"评级。 风险提示：食品安全风险，原材料价格波动，行业竞争加剧。 事件：2024 年公司实现营收16.59 亿，同比+18%，归母净利1.82 亿，同比扭亏。2024Q4 实现营收3.36 亿元，同比-32%，归母净利0.27 亿元，同比+52%。2025Q1 实现营收3.29 亿，同比-14%，归母净利0.22 亿，同比-47%。 国内自主品牌、国外市场均保持高增，规模效应带动净利率提升。2024年公司国内/国外分别实现营收 2.9/13.7 亿元，同比-18%/+29%。国内市场中，自主品牌增长33%，其中爵 ...

Group 1: Company Overview - YuJin Investment recently conducted research on Petty Co., focusing on its operational plans for 2024 and Q1 2025, emphasizing the expansion of offline channels such as Sam's Club and Walmart through a "shelf occupation plan" [1] - Petty Co. plans to deepen its high-end dog food market with its own brand "Jueyan" in 2025, particularly in staple food, and has high expectations for its air-dried food products, while also launching high-end cat food [1] - The company has shifted U.S. customer orders to Southeast Asian factories to mitigate the impact of U.S. tariff policy changes, although the specific effects are still uncertain [1] Group 2: Product Development and Market Strategy - In Q1 2025, Jueyan's growth in new snack products includes natural bone and meat chew snacks, staple canned food, freeze-dried snacks, and fresh grain, with rapid growth noted in freeze-dried products [1] - The company plans to introduce high-end cat food, starting with existing loyal customers, while the "Hao Shi Jia" brand targets cost-effective customers [1] - The New Zealand staple brand SmartBalance is set to launch domestically, with an expected 20% to 30% capacity release in 2025 to meet the diverse demands of high-end staple brands [1]

Group 1: Financial Performance - In 2024, the company achieved revenue of CNY 1.659 billion, a year-on-year increase of 17.56% [4] - The net profit attributable to shareholders reached CNY 182 million, a significant increase of 1742.81% [4] - The net cash flow from operating activities was CNY 366 million, up by 105.20% [4] - As of the end of 2024, the company's debt-to-asset ratio was 34.26%, a decrease of 1.65 percentage points from the previous year [4] - In Q1 2025, the company reported revenue of CNY 329 million and a net profit of CNY 22.23 million, showing some fluctuations compared to the same period last year [4] Group 2: Business Segments and Growth - The plant-based chewable business generated over CNY 600 million in revenue in 2024, with a year-on-year growth rate of 43.68%, accounting for 36.62% of total revenue [4] - Domestic sales revenue reached CNY 288 million, primarily driven by the company's own brands, which grew by 33% [4] - The "Jueyan" brand saw a 52% increase in revenue [4] - The company is focusing on expanding its main grain product business, expecting rapid growth in the next two years [4] Group 3: Brand Strategy and Market Positioning - In 2025, the company will continue to develop its brand matrix and segmentation strategy, focusing on high-end dog food and extending into high-end cat food [4] - The company plans to enhance sales efficiency through differentiated product offerings on e-commerce platforms like Tmall and JD.com [4] - The company aims to expand its offline presence in major retail chains such as Sam's Club and Walmart [4] Group 4: International Operations and Challenges - The company has shifted all U.S. customer orders to Southeast Asian factories due to U.S. tariff policies, which are currently difficult to assess for their impact on business [5] - The New Zealand main grain brand is expected to release 20% to 30% of its capacity in 2025, meeting diverse demands for high-end grain products [6] - The company maintains a strong position in the pet snack market, particularly in the chewable segment, with significant R&D and manufacturing capabilities [5]