Core Viewpoint - The company reported strong financial performance for 2024 and Q1 2025, with significant year-on-year growth in revenue and net profit, indicating robust business momentum and market positioning [1][2]. Financial Performance - In 2024, the company achieved revenue of 5.25 billion yuan, a year-on-year increase of 21.2%, and a net profit of 630 million yuan, up 45.7% [1]. - For Q1 2025, revenue reached 1.48 billion yuan, reflecting a 34.8% increase year-on-year, with net profit at 200 million yuan, a growth of 37.7% [1]. - Earnings per share (EPS) for 2024 and Q1 2025 were 1.56 yuan and 0.51 yuan, respectively [1]. Product and Business Segmentation - The staple food product segment saw a revenue increase of 28.9%, accounting for 51.3% of total revenue, surpassing the zero-food category for the first time [2]. - The company's proprietary brand business revenue grew by 29.1%, making up 67.6% of total revenue [2]. - Direct sales mode revenue surged by 59.3%, representing 37.6% of total revenue [2]. Profitability and Cost Management - The overall gross margin improved by 5.5 percentage points to 42.3% in 2024, driven by high-margin product categories and effective cost control [2]. - The gross margin for the direct sales model reached 53.1%, benefiting from significant sales through platforms like Alibaba and Douyin [2]. Brand Development and Market Position - The company continues to lead the industry with its proprietary brand, 麦富迪, consistently ranking at the top of consumption lists across various platforms [2]. - The brand 弗列加特 has rapidly developed in the high-end cat product segment, while the newly launched 汪臻醇 targets the premium dog food market, enhancing the multi-brand strategy [2]. Marketing and Expense Management - In Q1 2025, the company increased its sales expenses to enhance brand visibility, with sales, management, financial, and R&D expense ratios at 17.8%, 5.1%, -0.5%, and 1.5%, respectively [3]. - The increase in promotional and sales service expenses aligns with the growth of proprietary brands and direct sales channels [3]. Future Projections - The company forecasts revenues of 6.34 billion yuan, 7.56 billion yuan, and 9.28 billion yuan for 2025, 2026, and 2027, respectively, with net profits of 746 million yuan, 1.005 billion yuan, and 1.190 billion yuan [3]. - Corresponding price-to-earnings (PE) ratios are projected at 55.71, 41.36, and 34.94 times for the same years [3].

Group 1: Trade Impact and Response - The company faces challenges in U.S. export trade due to the U.S.-China trade war, leading to uncertainties. Future strategies include strengthening overseas market presence and supply chain adjustments to mitigate impacts [3] - The "reciprocal tariff" policy affects the company's export business, with approximately 30% of consolidated revenue from overseas OEM operations. The U.S. market holds a significant share, and the policy impacts orders from Chinese factories, while Thai factories remain unaffected [3] - Domestic market trends show a shift towards local brand replacement, accelerated by the trade war, with the company aiming to fill market gaps and enhance brand strength [3] Group 2: Growth Strategies - The company's growth is primarily driven by its proprietary brand business, with OEM operations decreasing in proportion. Revenue and profit margins from domestic brands are on the rise [4] - Key factors for growth include product structure optimization, increasing direct sales, multi-brand strategy, and supply chain enhancements through new and smart factory investments [4] Group 3: Research and Development - The company has invested over 200 million CNY in R&D over the past three years, with 329 domestic patents granted by 2024, focusing on core areas like fresh meat additives and nutrient release technologies [4] - A collaborative innovation model across multiple R&D centers strengthens technological barriers, creating a complete cycle from basic research to market application [4] Group 4: Shareholder Returns - In 2024, the company plans to distribute over 200 million CNY in cash dividends, representing 32.02% of the annual net profit attributable to shareholders, aiming to enhance investor returns and ensure stable profit distribution policies [4]

Investment Rating - The investment rating for the company is "Buy" based on its strong performance and growth potential [1]. Core Views - The company has demonstrated impressive growth in its proprietary brands, with a significant increase in revenue and profit margins. The brand's high-end positioning continues to exceed expectations [2][3]. - In 2024, the company achieved a revenue of 5.245 billion yuan, representing a year-on-year growth of 21.2%, and a net profit of 625 million yuan, up 45.7% [1]. - The first quarter of 2025 saw a revenue of 1.48 billion yuan, marking a 34.8% increase, with a net profit of 204 million yuan, up 37.7% [1]. Summary by Sections Revenue and Profit Growth - In 2024, the company's proprietary brands generated revenue of 3.545 billion yuan, a year-on-year increase of 29.1%. The brand "弗列加特" is expected to see revenue more than double, while "麦富迪" maintains steady growth [2]. - The revenue from snacks and staple foods reached 2.484 billion yuan and 2.690 billion yuan respectively, with year-on-year growth of 14.7% and 28.9% [2]. Direct Sales and E-commerce Performance - Direct sales revenue in 2024 was 1.969 billion yuan, a 59.3% increase, accounting for 37.6% of total revenue, up 9.0 percentage points year-on-year. The combined revenue from 淘系 and 抖音 reached 1.415 billion yuan, a 52.7% increase [2]. Margin and Cost Management - The gross margin for the first quarter of 2025 was 41.6%, reflecting a 0.4 percentage point increase year-on-year. The net profit margin also showed steady improvement [3]. - The company has optimized its operational efficiency, with inventory turnover days at 82, accounts receivable at 25, and accounts payable at 28 days [3]. Future Profit Forecast - The projected net profits for 2025, 2026, and 2027 are 789 million yuan, 1.049 billion yuan, and 1.344 billion yuan respectively, with corresponding price-to-earnings ratios of 60, 46, and 36 times [3].

Investment Rating - The investment rating for the company is "Buy" based on its strong performance and growth potential [1]. Core Views - The company has demonstrated impressive growth in its proprietary brands, with a significant increase in revenue and profit margins, particularly driven by the Fligat brand [2][3]. - The company's revenue for 2024 reached 5.245 billion yuan, reflecting a year-on-year growth of 21.2%, while the net profit attributable to the parent company was 625 million yuan, up 45.7% [1][2]. - In Q1 2025, the company achieved a revenue of 1.48 billion yuan, marking a 34.8% increase, and a net profit of 204 million yuan, which is a 37.7% rise [1][2]. Summary by Sections Revenue and Profit Growth - In 2024, the company's proprietary brands generated revenue of 3.545 billion yuan, a year-on-year increase of 29.1%, with Fligat expected to more than double its revenue [2]. - The company’s direct sales revenue reached 1.969 billion yuan in 2024, a 59.3% increase, with a significant contribution from e-commerce platforms [2]. Product and Market Development - The company has focused on high-end product offerings, with the Fligat brand's revenue significantly increasing and the product structure of Maifudi improving [2]. - The launch of upgraded products in March 2025, such as Fligat's baked grain, aims to enhance nutritional precision [2]. Financial Performance and Forecast - The company’s gross margin improved to 41.6% in Q1 2025, with net profit margins also showing steady improvement [3]. - Forecasts for net profit attributable to the parent company are 789 million yuan for 2025, 1.049 billion yuan for 2026, and 1.344 billion yuan for 2027, with corresponding P/E ratios of 60, 46, and 36 times [3][5].

Core Viewpoint - The research team conducted a field study at Guobao Pet Group in Shandong to understand the current state of the pet industry and analyze the company's development, aiming to provide practical recommendations for policy formulation to support high-quality growth in the pet industry [1]. Group 1: Industry Overview - The pet market is experiencing continuous growth in demand, but it faces challenges such as the need for improved industry standards, unregulated pet-keeping environments, and increasing market competition [5]. - The importance of brand building is emphasized, particularly in the context of intensified global competition, with a focus on enhancing the global influence of domestic pet food products [7]. Group 2: Company Insights - Guobao Pet's leadership provided a comprehensive overview of the entire production chain of pet food, from research and development to logistics, allowing the research team to gain a direct understanding of the company's production capabilities and the current state of the pet food industry [2]. - Guobao Pet aims to strengthen its technology, quality, and brand development to enhance the competitiveness of domestic brands on the international stage [5]. Group 3: Policy and Support - The research activity combined on-site visits and in-depth discussions, uncovering both the development experiences of leading enterprises and the bottlenecks they face, which will inform future policy-making and industry guidance [17]. - The role of private enterprises in economic development is highlighted, with associations pledging to leverage their platform advantages to support Guobao Pet in reaching households across the country and expanding globally [9].

Performance Overview - In 2024, the company achieved revenue of 5.25 billion, a year-on-year increase of 21%, and recorded a net profit attributable to shareholders of 630 million, a year-on-year increase of 45.7% [1] - In Q4 2024, revenue reached 1.57 billion, a year-on-year increase of 29.6%, with a net profit of 150 million, a year-on-year increase of 34.8% [1] - In Q1 2025, revenue was 1.48 billion, a year-on-year increase of 34.8%, and net profit was 200 million, a year-on-year increase of 37.7% [1] Dividend Plan - The company proposed a cash dividend of 2.5 yuan for every 10 shares [2] Business Segmentation - Pet snacks generated revenue of 2.48 billion, a year-on-year increase of 14.7% [2] - Main food products achieved revenue of 2.69 billion, a year-on-year increase of 28.9%, benefiting from the increasing influence of proprietary brands [2] - Health products and other revenues were 50 million, a year-on-year decrease of 19% [2] - Domestic revenue was 3.55 billion, a year-on-year increase of 24%, while overseas revenue was 1.7 billion, a year-on-year increase of 16% [2] Brand Performance - The proprietary brand "Mafudi" ranked first in Tmall's comprehensive ranking during the Double 11 shopping festival [2] - High-end brand "Fuleijiate" saw a year-on-year sales increase of 190%, while "Bafu" experienced a 150% increase in sales [2] - Total revenue from proprietary brands reached 3.54 billion, a year-on-year increase of 29% [2] OEM/ODM Performance - OEM/ODM revenue was 1.68 billion, a year-on-year increase of 19% [3] Profitability Metrics - The overall gross margin increased by 5.43 percentage points to 42.3% for the year [3] - In Q4 2024, the gross margin rose by 3.3 percentage points to 42.9% [3] - The increase in gross margin was attributed to the high-end positioning of proprietary brands and stable raw material costs [3] Expense Analysis - The expense ratio for 2024 increased by 3.09 percentage points to 26.91%, mainly due to increased brand promotion and service fees [3] - Sales expense ratio increased by 3.45 percentage points, while management expense ratio rose by 0.07 percentage points [3] - Financial and R&D expense ratios decreased by 0.36 and 0.06 percentage points, respectively [3] Future Projections - The company expects to achieve net profits of 800 million, 960 million, and 1.15 billion in 2025, 2026, and 2027, representing year-on-year growth of 27%, 21.3%, and 19% respectively [4] - Earnings per share (EPS) are projected to be 1.99 yuan, 2.41 yuan, and 2.87 yuan for the same years, with corresponding price-to-earnings (PE) ratios of 50, 41, and 34 [4]

Investment Rating - The report assigns an "Accumulate" rating to the company, with an expected price target of 108.28 CNY over the next six months [5]. Core Insights - The company reported a revenue of 5.245 billion CNY for 2024, representing a year-on-year growth of 21.22%. The net profit attributable to the parent company reached 625 million CNY, up 45.68% year-on-year [1]. - The growth in the staple food business, particularly the self-owned brand segment, has been a significant driver, with self-owned brands accounting for 67.59% of total revenue in 2024, an increase of 4.15 percentage points [2]. - The overall gross margin improved by 5.43 percentage points to 42.27% in 2024, driven by a decline in chicken prices and the growth of high-margin self-owned brand products [3]. Financial Summary - For 2024, the company achieved a revenue of 5.245 billion CNY, with a projected revenue growth of 20.17% for 2025 [12]. - The net profit attributable to the parent company is expected to grow to 810 million CNY in 2025, reflecting a 29.72% increase [12]. - The earnings per share (EPS) for 2025 is projected to be 2.03 CNY, with a corresponding price-to-earnings (P/E) ratio of 51x [4][12]. Business Performance - The pet food and staple food segments generated revenues of 2.484 billion CNY and 2.690 billion CNY respectively in 2024, with year-on-year growth rates of 14.66% and 28.88% [2]. - The company’s direct sales channel saw a significant increase in revenue, growing by 59.33% year-on-year, indicating a shift towards higher-margin sales strategies [3]. Market Outlook - The domestic business is expected to serve as a stabilizing factor for the company's performance amid uncertainties in overseas operations due to changing tariff policies [4]. - The report anticipates steady growth in overseas OEM demand, with revenue from international operations reaching 1.693 billion CNY in 2024, a 15.70% increase year-on-year [4].

Investment Rating - The report maintains an "Accumulate" investment rating for the company [7][10][18] Core Views - The company's performance continues to meet expectations with rapid growth, achieving total revenue of 5.245 billion yuan in 2024, a year-on-year increase of 21.22%, and a net profit of 625 million yuan, up 45.68% year-on-year [7] - The market size for pet food is expanding, with a notable increase in domestic brand market share, as evidenced by the top five brands in the Tmall pet food ranking being domestic brands [7] - The company's proprietary brands are performing exceptionally well, with significant revenue growth in both snack and staple food segments, and new product launches contributing to market leadership [7] Summary by Relevant Sections Financial Performance - In 2024, the company reported a total revenue of 5.245 billion yuan, a 21.22% increase year-on-year, and a net profit of 625 million yuan, reflecting a 45.68% growth [7] - The operating cash flow for 2024 was 720 million yuan, up 16.60% year-on-year [7] - For Q1 2025, revenue reached 1.48 billion yuan, a 34.82% increase year-on-year, with net profit at 204 million yuan, up 37.68% [7] Market Trends - The pet food market in China is projected to grow, with a reported market size of 300.2 billion yuan in 2024, a 7.5% increase year-on-year [7] - The penetration rates for professional dog and cat food have increased, indicating a shift towards higher-quality products [7] Brand Performance - The company's proprietary brand revenue reached 3.545 billion yuan, a 29.14% increase, with direct sales channel revenue growing by 59.33% [7] - The flagship brand, Maifudi, has maintained its leading position in the market, achieving a brand index of 92.53 in 2024 [7] - New high-end product lines have been launched, contributing to significant sales growth during promotional events [7]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 5.245 billion yuan in 2024, representing a year-on-year growth of 21.22%, and a net profit of 625 million yuan, up 45.68% year-on-year [1] - In Q1 2025, the company reported a revenue of 1.48 billion yuan, a year-on-year increase of 34.82%, with a net profit of 204 million yuan, growing 37.68% year-on-year [1] - The company continues to enhance its domestic self-owned brand strategy, with self-owned brand revenue increasing by 29% year-on-year, and direct sales revenue rising by 59% year-on-year [2] - The company's gross margin and net margin for 2024 were 42.3% and 11.96%, respectively, reflecting an increase of 5.4 percentage points and 2 percentage points year-on-year [2] - The company is focusing on high-end brand strategies, with significant growth in high-end product sales, including a 150% increase in sales for the brand during the Double 11 shopping festival [3] Financial Summary - The company’s revenue is projected to grow from 6.386 billion yuan in 2025 to 8.911 billion yuan in 2027, with corresponding net profits expected to rise from 761 million yuan to 1.280 billion yuan [5] - The projected P/E ratios for 2025, 2026, and 2027 are 54.7, 43.2, and 32.5, respectively [5] - The company’s return on equity (ROE) is expected to improve from 16.4% in 2025 to 20.7% in 2027 [5]

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [7][18]. Core Views - The company's performance continues to meet expectations with rapid growth, reporting a total revenue of 5.245 billion yuan in 2024, a year-on-year increase of 21.22%, and a net profit of 625 million yuan, up 45.68% year-on-year [7]. - The market size for pet food is expanding, with a notable increase in domestic brand penetration, as evidenced by the growth in the pet food market to 300.2 billion yuan, a 7.5% year-on-year increase [7]. - The company's proprietary brands are performing exceptionally well, with significant revenue contributions from both snacks and staple foods, and a strong presence in direct sales channels [7]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 5.245 billion yuan, with a net profit of 625 million yuan, reflecting a 45.68% increase year-on-year. The operating cash flow was 720 million yuan, up 16.60% [7]. - For Q1 2025, the company reported a revenue of 1.48 billion yuan, a 34.82% increase year-on-year, and a net profit of 204 million yuan, up 37.68% [7]. Market Trends - The pet food industry in China is experiencing a growth trend, with a reported production of 1.599 million tons in 2024, a 9.3% increase year-on-year, despite a general decline in the industry [7]. - The penetration rates for professional dog and cat food have increased, with 25% and 43% respectively, indicating a growing market for high-quality pet food [7]. Brand Performance - The company's own brands generated 3.545 billion yuan in revenue, a 29.14% increase, with direct sales channels seeing a 59.33% increase in revenue [7]. - The flagship brand, Maifudi, continues to lead the market, achieving the highest brand index in the "Top Ten Pet Food Brands in China" [7].