Zheng Quan Zhi Xing·2025-08-07 10:17Core Viewpoint - The report highlights that Zhongchong Co., Ltd. (002891) is experiencing strong domestic growth and has promising prospects for brand expansion overseas, leading to an "Accumulate" rating from Shanxi Securities [1]. Financial Performance - In the first half of 2025, the company achieved revenue of 2.432 billion yuan, a year-on-year increase of 24.32%, and a net profit attributable to shareholders of 203 million yuan, up 42.56% year-on-year [2]. - For Q2 2025, the company reported revenue of 1.331 billion yuan, a 23.44% increase year-on-year, and a net profit of 112 million yuan, reflecting a 29.79% year-on-year growth [2]. Product Performance - The company's staple food products continue to grow rapidly, while snack products maintain steady performance. In H1 2025, snack and staple food revenues were 1.529 billion yuan and 783 million yuan, respectively, with year-on-year growth of 6.37% and 85.79% [3]. - The gross margins for snacks and staple foods were 30.63% and 36.63%, respectively, indicating an ongoing optimization of the product structure with an increasing share of staple food products [3]. Domestic Business Growth - Domestic business revenue reached 857 million yuan in H1 2025, a 38.89% increase year-on-year, with a gross margin of 37.68%, up 0.89 percentage points year-on-year [3]. - The company's self-owned brand "WANPY" has launched successful new products, and the "TOPTREES" brand has become the first in the pet food industry to establish a strategic partnership with CCTV [3]. Global Expansion - The company's overseas business generated revenue of 1.575 billion yuan in H1 2025, a year-on-year increase of 17.61%, with a gross margin of 27.95%, up 4.04 percentage points year-on-year [4]. - The establishment of a factory in Mexico has strengthened the supply chain in North America, while the company's global capacity layout supports its brand expansion efforts [4]. Investment Outlook - The company is expected to enhance its brand operation capabilities, with projected net profits of 464 million yuan, 555 million yuan, and 681 million yuan for 2025, 2026, and 2027, respectively [5]. - The current stock price corresponds to a PE ratio of 38.5 times for 2025 and 32.2 times for 2026, maintaining an "Accumulate-A" rating [5].