Investment Rating - The report assigns a "Trading Buy" rating for the company, indicating a potential upside of 5% to 15% [4][6]. Core Views - The company, as a leading domestic pet food brand, has maintained rapid growth in performance during the first three quarters of the year, with revenue reaching 3.67 billion RMB, a year-on-year increase of 18%, and a net profit of 470 million RMB, up 50% year-on-year [4][5]. - The brand's strength was validated during the Double Eleven shopping festival, with total GMV exceeding 670 million RMB, a 65% increase year-on-year, indicating strong market presence and brand recognition [5][6]. - The company is expected to achieve its equity incentive targets for 2024, with projected revenue growth of 19% and profit growth of 21% compared to 2023 [5][6]. Summary by Sections Company Overview - The company operates in the food and beverage industry, with a current A-share price of 66.99 RMB as of December 3, 2024, and a target price of 72 RMB [1]. - The company has a market capitalization of approximately 11.993 billion RMB and a total share count of 400.04 million [1]. Financial Performance - For the first three quarters, the company reported a gross margin increase of 6.21 percentage points to 41.98%, driven by an improved product mix [4][5]. - The company’s sales expenses increased, with a comprehensive expense ratio of 25.9%, up 3.3 percentage points year-on-year, while the sales expense ratio rose to 18.9% [5][6]. - Earnings per share (EPS) are projected to be 1.51 RMB, 1.83 RMB, and 2.17 RMB for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 44, 37, and 31 [6][10]. Market Position - The company has a strong competitive position in the pet food industry, with a product mix heavily weighted towards staple grains (49.39%) and snacks (49.21%) [1][4]. - The report highlights the company's ability to leverage scale effects to enhance profitability, despite short-term shareholder dilution concerns due to planned share reductions by major stakeholders [4][6].
乖宝宠物：双十一验证品牌力，规模化提振盈利