Petpal Tech.(SZ:300673) KAIYUAN SECURITIES·2024-10-23 09:38Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced a significant recovery in profits driven by full order volumes, leading to the realization of scale effects. The earnings forecast for 2024-2026 has been slightly adjusted upwards, with expected net profits of 211 million, 229 million, and 273 million yuan respectively [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company's revenue reached 1.323 billion yuan, a year-on-year increase of 44.34%, with a net profit attributable to the parent company of 155 million yuan, marking a return to profitability. In Q3 2024, revenue was 477 million yuan, up 12.61% year-on-year, and net profit was 57 million yuan, a staggering increase of 319.98% year-on-year [3][4]. - The gross profit margin and net profit margin for Q3 2024 were 30.95% and 12.07%, respectively, reflecting increases of 12.54 percentage points and 8.97 percentage points year-on-year [4]. Operational Efficiency - The company has achieved significant cost reduction and efficiency improvements, with sales, management, and R&D expense ratios showing slight decreases. The financial expense ratio increased by 4.07 percentage points to 3.66% due to reduced foreign exchange gains from RMB appreciation [4]. Market Dynamics - The recovery of overseas orders has contributed to the realization of scale effects, with the Cambodian factory generating approximately 270 million yuan in revenue and a net profit exceeding 30 million yuan, achieving over 90% capacity utilization. The domestic self-owned brand sales have also improved, with the domestic factory's utilization rate exceeding 80% [5]. - The introduction of high-margin new products for Canadian and European clients has positively impacted the company's product profitability structure [5]. Financial Projections - The company's revenue is projected to grow from 1.906 billion yuan in 2024 to 3.224 billion yuan in 2026, with a year-on-year growth rate of 35.1% in 2024, 32.2% in 2025, and 28.0% in 2026 [6][8]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 0.85 yuan, 0.92 yuan, and 1.10 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 18.2, 16.8, and 14.0 [6][8].