Petpal Tech.(SZ:300673) Haitong Securities·2024-11-07 00:43Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Insights - The company achieved a revenue of 1.323 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 44.34%. The net profit attributable to shareholders reached 155 million yuan, a significant increase of 630.85% [5] - In Q3 2024, the company reported a revenue of 477 million yuan, up 12.61% year-on-year, and a net profit of 57 million yuan, which is a 319.98% increase year-on-year. The growth was driven by the recovery of overseas markets, increased production capacity in Southeast Asia, and a focus on developing proprietary brands [5] - The company has established a pet industry fund with a fundraising target of 300 million yuan to deepen its investment in the pet industry, focusing on areas such as pet food, medical services, and products [6] - The company revised its employee stock ownership plan to enhance employee motivation, setting ambitious performance targets for revenue and net profit growth [7] - Profit forecasts indicate that net profits for 2024, 2025, and 2026 are expected to be 193 million yuan, 236 million yuan, and 278 million yuan, respectively, with a projected PE ratio of 20.32 for 2024 [8] Financial Summary - For 2024, the company is expected to generate a total revenue of 1.977 billion yuan, with a year-on-year growth of 40.1%. The net profit is projected to be 193 million yuan, marking a return to profitability [9][12] - The gross profit margin is expected to improve from 19.3% in 2023 to 27.8% in 2024, indicating enhanced profitability [9][12] - The company’s total assets are projected to grow from 2.936 billion yuan in 2023 to 3.816 billion yuan in 2026 [13]