Petpal Tech.(SZ:300673) Huafu Securities·2024-08-27 14:05Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 20% relative to the market benchmark index within the next six months [10]. Core Insights - The company reported a significant recovery in overseas business, with a total revenue of 846 million yuan in H1 2024, representing a year-on-year increase of 71.64%. The net profit attributable to the parent company reached 98 million yuan, compared to a loss of 43 million yuan in the same period last year [2][3]. - The overseas revenue was 690 million yuan, up 88% year-on-year, while domestic revenue was 160 million yuan, reflecting a 25% increase [2]. - The gross profit margin improved to 26.4%, a rise of 10.9 percentage points year-on-year, primarily due to enhanced operational efficiency in overseas factories [2]. Financial Performance Summary - For 2024, the company is projected to achieve total revenues of 2.009 billion yuan, a growth rate of 42.3%. The net profit is expected to be 177 million yuan, marking a significant turnaround from previous losses [3][6]. - The earnings per share (EPS) is forecasted to be 0.71 yuan in 2024, with a price-to-earnings (P/E) ratio of 16.5 [3][6]. - The company’s total assets are estimated to reach 3.053 billion yuan by 2024, with a debt-to-asset ratio of 35% [6]. Market Position and Strategy - The company is focusing on a multi-brand strategy in the domestic market, with key brands like "Jueyan" and "Haoshijia" driving growth. During the 618 shopping festival, the high-end pet food brand "Jueyan" achieved over 25 million yuan in total sales [2]. - The operational efficiency of the Vietnam factory has become a major profit source, while the Cambodia base has turned profitable, achieving a net profit of 18.4 million yuan in H1 2024 [2].