CHINA PET FOODS(SZ:002891) KAIYUAN SECURITIES·2024-10-23 06:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for the first three quarters of 2024 reached 3.189 billion yuan, a year-on-year increase of 17.56%, with a net profit attributable to shareholders of 282 million yuan, up 59.54% year-on-year. The third quarter of 2024 saw revenue of 1.232 billion yuan, a 23.55% increase year-on-year, and a net profit of 140 million yuan, up 73.18% year-on-year, marking a historical high for both metrics [2] - Due to better-than-expected growth in domestic and international sales, the profit forecast for 2024-2026 has been raised, with expected net profits of 358 million, 414 million, and 511 million yuan respectively, and corresponding EPS of 1.22, 1.41, and 1.74 yuan [2] - The company reported a gross margin of 26.89% and a net margin of 11.97% in Q3 2024, with the net margin improving mainly due to investment income of 33.3 million yuan from a subsidiary [2] Summary by Sections Financial Performance - For 2024, the company expects revenue to reach 4.246 billion yuan, a 13.3% year-on-year increase, and net profit to be 358 million yuan, a 53.6% increase year-on-year. The gross margin is projected to be 27.9% and the net margin at 8.4% [3] - The company’s total assets are expected to grow from 4.39 billion yuan in 2023 to 4.88 billion yuan in 2024, with total liabilities increasing from 1.971 billion yuan to 2.036 billion yuan [4] Domestic and International Sales - The export business grew nearly 20% year-on-year in Q3 2024, driven by rapid growth in overseas and European markets [2] - The Canadian factory maintained over 50% growth, while the U.S. factory is expected to contribute over 600 million yuan in revenue in 2024 [2] Product and Brand Development - The company has adjusted its product strategy for its "Wanpi" brand, resulting in over 20% revenue growth and a nearly 10 percentage point increase in gross margin in Q3 2024 [2] - Collaborative marketing efforts, such as a partnership with a popular TV series, have further enhanced brand visibility and sales performance [2]