CHINA PET FOODS(SZ:002891) Huachuang Securities·2024-08-23 07:07Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 28.5 CNY per share, compared to the current price of 20.04 CNY [1][2]. Core Insights - The company reported a revenue of 1.956 billion CNY for the first half of 2024, representing a year-on-year growth of 14.08%, and a net profit attributable to shareholders of 142 million CNY, up 48.11% year-on-year [1]. - The overseas business showed steady growth, achieving revenue of 1.339 billion CNY in H1 2024, a 10.22% increase year-on-year, with a gross margin of 25.10%, up 2.80 percentage points [2]. - Domestic revenue also grew significantly, with a 23.45% increase to 617 million CNY in H1 2024, and the staple food category saw an impressive growth of 83.96% [2]. - The company has set ambitious revenue growth targets for the coming years, aiming for a 30% increase in domestic revenue in 2024, and a combined revenue growth of 8% in overseas markets for 2024 [2]. - The report adjusts the EPS forecast for 2024-2026 to 1.02, 1.34, and 1.73 CNY per share, respectively, reflecting a positive outlook on profitability [2]. Financial Summary - Total revenue for 2023 is projected at 3.747 billion CNY, with a year-on-year growth rate of 15.4%. For 2024, revenue is expected to reach 4.286 billion CNY, a growth of 14.4% [3]. - The net profit attributable to shareholders is forecasted to increase from 233 million CNY in 2023 to 300 million CNY in 2024, representing a growth of 28.6% [3]. - The company’s earnings per share (EPS) is expected to rise from 0.79 CNY in 2023 to 1.02 CNY in 2024, with a corresponding price-to-earnings (P/E) ratio of 20 [3].