CHINA PET FOODS(SZ:002891) Xin Lang Cai Jing·2025-10-20 02:32Core Viewpoint - The company has been deeply engaged in the pet food industry for nearly 30 years, utilizing both OEM and self-owned brands to drive growth, with significant international and domestic sales achievements [1] Group 1: Export Business - The company has established a global supply chain with production capacities in six countries, achieving an export revenue of 1.57 billion yuan, accounting for 65% of total revenue as of H1 2025 [1] - North America is the largest sales market, and the company has proactively built overseas production capacities to mitigate trade risks, with net profit margins for various overseas factories ranging from 13% to 21% [2] - The company’s export performance has significantly outperformed the industry during trade tensions and tariff increases [2] Group 2: Domestic Sales - The company has developed three core self-owned brands, "WANPY," "TOPTREES," and "ZEAL," capturing the mid-to-high-end domestic market, with domestic sales revenue reaching 860 million yuan, accounting for 35% of total revenue as of H1 2025 [1] - The pet food industry still has considerable growth potential, with a fragmented competitive landscape allowing leading domestic brands to increase market share [3] - The company’s product matrix is improving under its explosive product strategy, with significant online ranking improvements during promotional periods [3] Group 3: Profitability - The company has benefited from favorable raw material costs and exchange rates, leading to continuous improvement in gross margins, with expectations for further increases in gross and net profit margins due to a higher proportion of self-owned products [4] - Revenue projections for 2025-2027 are 5.42 billion, 6.54 billion, and 7.87 billion yuan, with year-on-year growth rates of 21.3%, 20.8%, and 20.3% respectively, and net profits of 470 million, 580 million, and 740 million yuan, with growth rates of 18.3%, 24.8%, and 27.2% respectively [4]