Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for its stock performance [2]. Core Insights - The company is a leading player in China's pet food market, focusing on the research, production, and sales of pet food. It has transitioned from OEM/ODM operations to developing its own brands, achieving significant revenue growth and market share [8][12]. - The company's self-owned brand revenue reached 2.745 billion yuan in 2023, a 34% increase year-on-year, accounting for 63.44% of total revenue. This growth is attributed to the successful development of high-end brands [8][12]. - The company has implemented an equity incentive plan to boost employee motivation and align their interests with company performance, reflecting strong confidence in future growth [25][26]. Summary by Sections 1. Company Overview and Historical Performance - The company has shown rapid growth in revenue and profitability since 2018, with revenue increasing from 1.221 billion yuan to 4.327 billion yuan from 2018 to 2023, representing a CAGR of 28.8%. Net profit grew from 45 million yuan to 429 million yuan during the same period, with a CAGR of 57.3% [12][34]. - The company has a market share of 5.5% in China's pet food market, ranking second after Mars Group [8][11]. 2. Equity Incentive Plan and Performance Assessment - In July 2024, the company announced its first equity incentive plan, granting 2.177 million shares at a price of 25.93 yuan per share to nine key employees, with performance targets set for revenue and net profit growth from 2024 to 2026 [25][26]. - The performance assessment includes a target of at least 19% revenue growth in 2024 and 2025, and 18% in 2026, with net profit growth targets of 21%, 15%, and 14% respectively [27][32]. 3. Profit Forecast and Investment Recommendations - The company is expected to achieve revenues of 5.241 billion yuan, 6.245 billion yuan, and 7.393 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 21%, 19%, and 18% [32][34]. - The forecasted net profits for the same years are 611 million yuan, 724 million yuan, and 853 million yuan, with growth rates of 43%, 18%, and 18% [32][34]. - The company enjoys a valuation premium due to its leading market position and superior profitability compared to peers, justifying the "Accumulate" rating [35].
乖宝宠物：我国宠物食品品牌龙头，股权激励彰显发展信心