RINGPU(300119) 国信证券·2024-11-24 05:15Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][4][18] Core Views - The company has announced an increase in its stake in Ruipai Pet Hospital, strengthening its position in the pet health sector [2][3] - Following the acquisition, the company's shareholding in Ruipai Pet Hospital is expected to rise from 8.93% to 11.56% [3][5] - Ruipai Pet Hospital operates over 600 pet chain hospitals across 27 provinces and municipalities in China, with a supply chain platform covering 7,000 pet hospitals and 3,400 pet stores [4][6] - The pet health industry is characterized by significant growth potential, with the market size reaching 121.6 billion yuan in 2022 and a CAGR of 36% over the past three years [12][13] - The company has established a strategic partnership with Ruipai Pet Hospital, aiming to enhance sales channel cooperation and brand building [8][12] Summary by Sections Company Overview - Ruipai Pet Hospital, founded in December 2012, is a large chain specializing in pet hospital operations and management [6] - The company has developed a comprehensive service system, including regular outpatient services, specialty clinics, and pet health management [6] Financial Projections - The company forecasts net profits for 2024-2026 to be 530 million, 630 million, and 650 million yuan, respectively, with corresponding EPS of 1.1, 1.3, and 1.4 yuan [4][18] - The current price-to-earnings ratio (PE) is projected to be 18, 15, and 14 times for the years 2024, 2025, and 2026 [18] Market Position - The company is positioned as a core asset in the A-share pet health sector, with a comprehensive presence in upstream and midstream segments [12][13] - The introduction of a new cat vaccine is expected to create a billion-yuan product, while Ruipai Pet Hospital's revenue for 2023 is projected to approach 2 billion yuan [12][13]