CHINA PET FOODS(SZ:002891) Guoxin Securities·2024-10-28 12:44Investment Rating - The investment rating for the company is "Outperform the Market" [3][4][6] Core Views - The company's main business continues to grow, with investment income increasing, leading to a 73% year-on-year growth in net profit attributable to shareholders in Q3 2024 [4][6] - For the first three quarters of 2024, the company achieved an operating income of 3.189 billion yuan, a year-on-year increase of 17.56%, primarily due to high overseas business activity and the expansion of domestic brand operations [4][6] - The Q3 2024 net profit attributable to shareholders reached 140 million yuan, reflecting a quarter-on-quarter increase of 62.79% and a year-on-year increase of 73.18% [4][6] Summary by Sections Financial Performance - In Q3 2024, the company reported an operating income of 1.232 billion yuan, a quarter-on-quarter increase of 14.29% and a year-on-year increase of 23.55% [4][6] - The net profit attributable to shareholders for Q3 2024 was 140 million yuan, with a significant contribution from investment income, which increased by nearly 40 million yuan compared to the same period last year [4][6] - The gross profit margin for the first three quarters of 2024 was 27.55%, with a slight year-on-year increase of 1.70 percentage points [4][6] Expense Management - Sales expenses for the first three quarters of 2024 amounted to 333 million yuan, a year-on-year increase of 32.42%, with a sales expense ratio of 10.45% [5][6] - Management expenses were 133 million yuan, reflecting a year-on-year increase of 26.57% [5][6] - Financial expenses remained stable at 17 million yuan, with a financial expense ratio of 0.53% [5][6] Cash Flow and Working Capital - The net operating cash flow for the first three quarters of 2024 was 198 million yuan, a year-on-year decrease of 31.42% [6] - The inventory turnover days were 66 days, a year-on-year decrease of 16.68%, while accounts receivable turnover days increased to 51 days, a year-on-year increase of 15.18% [6] Profit Forecast - The net profit forecast for 2024 has been adjusted to 300 million yuan, up from the previous estimate of 270 million yuan, with projections for 2025 and 2026 remaining at 310 million yuan and 350 million yuan, respectively [6][8]