Petpal Tech.(SZ:300673) Xin Lang Cai Jing·2025-08-28 06:42Core Viewpoint - The company experienced a decline in revenue and net profit in the first half of 2025, but showed resilience in its domestic brand growth and improved profitability metrics [1][2][3] Financial Performance - In 1H2025, the company reported revenue of 728 million yuan, a decrease of 13.94% year-on-year, and a net profit of 79 million yuan, down 19.23% year-on-year [1] - The second quarter showed a slight improvement with revenue down 13.56% year-on-year and net profit up 1.15% year-on-year [1] Product Performance - Revenue from various product lines in 1H2025 included: - Livestock skin chew revenue of 232 million yuan (down 11.91%) with a gross margin of 28.08% (up 5.28 percentage points) - Plant-based chew revenue of 221 million yuan (down 25.72%) with a gross margin of 32.07% (up 3.12 percentage points) - Nutritional meat snacks revenue of 217 million yuan (up 14.35%) with a gross margin of 36.62% (up 6.75 percentage points) - Main and wet food revenue of 45 million yuan (down 44.74%) with a gross margin of 33.27% (up 11.04 percentage points) [2] International Business and Brand Strategy - The overseas business faced challenges with a 21% year-on-year decline in foreign sales due to order rhythm from overseas clients, but the company aims to enhance its resilience by expanding non-US customer outreach [2] - The domestic brand continued to grow rapidly, focusing on product innovation with new launches in the first half of the year and plans for further product introductions in the second half [2] Profitability Metrics - The company achieved a gross margin of 31.98% in 1H2025, an increase of 5.63 percentage points, with a second quarter gross margin of 34.76% [3] - The net profit margin for 1H2025 was 11.00%, a decrease of 0.65 percentage points, with a second quarter net profit margin of 14.25% [3] Expense Ratios - The sales expense ratio increased by 1.65 percentage points to 7.66% due to higher investments in the domestic brand [3] - The management expense ratio rose by 2.64 percentage points to 8.53%, primarily due to increased operational expenses from New Zealand's natural products [3] Investment Outlook - The company forecasts net profits of 197 million yuan, 236 million yuan, and 281 million yuan for 2025-2027, with corresponding price-to-earnings ratios of 22.5, 18.7, and 15.8 times based on the closing price on August 26 [3]