CHINA PET FOODS(SZ:002891) Huafu Securities·2024-10-24 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [16]. Core Views - The company has shown accelerated operational performance in Q3 2024, achieving a total revenue of 3.89 billion yuan, a year-on-year increase of 17.56%, and a net profit attributable to shareholders of 282 million yuan, up 59.54% year-on-year [1][2]. - The company is focusing on enhancing its core self-owned brands and expanding its market presence both domestically and internationally, with specific revenue growth targets set for the next three years [2]. - The report projects significant revenue and profit growth for the company in the coming years, with expected revenues of 4.38 billion yuan, 5.10 billion yuan, and 5.98 billion yuan for 2024, 2025, and 2026 respectively, reflecting growth rates of 16.8%, 16.5%, and 17.2% [2][3][12]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 1.23 billion yuan, a year-on-year increase of 23.55%, and a net profit of 140 million yuan, up 73.18% year-on-year [1]. - The gross margin for Q3 2024 was 26.9%, with a net profit margin of 11.3%, reflecting a year-on-year increase of 3.2 percentage points [1]. Revenue and Profit Forecast - The company expects to achieve revenue targets of 4.38 billion yuan in 2024, 5.10 billion yuan in 2025, and 5.98 billion yuan in 2026, with corresponding net profits of 366 million yuan, 406 million yuan, and 487 million yuan [2][3][12]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.25 yuan, 1.38 yuan, and 1.66 yuan respectively [3][12]. Strategic Initiatives - The company has launched an employee stock ownership plan aimed at aligning employee interests with long-term company growth, with specific revenue and profit targets set for the next three years [2]. - The focus remains on brand development and market expansion, particularly in the overseas markets, while maintaining a strong domestic presence [2].