CHINA PET FOODS(SZ:002891) Haitong Securities·2024-08-29 07:51Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company reported a revenue of 1.956 billion yuan for the first half of 2024, representing a year-on-year increase of 14.08%, and a net profit attributable to shareholders of 142 million yuan, up 48.11% year-on-year [6] - The pet food business showed strong performance with revenue of 422 million yuan, a year-on-year increase of 83.96%, while pet snacks generated 1.136 billion yuan, growing 4.19% year-on-year [6] - The company is actively expanding both domestic and international markets, achieving domestic revenue of 617 million yuan (up 23.45% year-on-year) and international revenue of 1.339 billion yuan (up 15.99% year-on-year) in the first half of 2024 [6] Financial Performance - In Q2 2024, the company achieved revenue of 1.078 billion yuan, a year-on-year increase of 6.84%, and a net profit of 86.21 million yuan, up 7.09% year-on-year [6] - The gross profit margin for Q2 2024 was 28.08%, an increase of 2.62 percentage points year-on-year, while the net profit margin was 7.98% [9] - The company forecasts net profits of 308 million yuan, 367 million yuan, and 408 million yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 32.2%, 19.0%, and 11.4% [9][12] Business Strategy - The company has launched an employee stock ownership plan, aiming to enhance performance and retain talent, with a plan size of up to 4.4639 million shares, approximately 1.52% of the total share capital [7] - The plan includes performance targets for domestic and international business growth, with specific revenue and net profit growth targets set for 2024-2026 [7] Valuation - The current closing price corresponds to a PE ratio of 19.74 for 2024 and 16.59 for 2025, with a reasonable valuation range of 27.24 to 28.29 yuan based on a PE of 26-27 times for 2024 [9][12] - The company’s revenue is projected to reach 4.217 billion yuan in 2024, with a year-on-year growth rate of 12.5% [12]