Investment Rating - The report upgrades the company's rating to "Buy" based on its strong performance and growth prospects [6] Core Views - The company's 2024 performance exceeded expectations, driven by both existing and new customers, leading to significant revenue growth and improved profitability [1][6] - Revenue growth is supported by the recovery of core customers and the addition of new clients such as Costco, contributing to a 33.3% year-over-year increase in 2024E revenue [6] - Profitability improved due to lower raw material costs, enhanced cost control, and increased capacity utilization, with 2024E net profit expected to grow by 104.3% year-over-year [6] - The company's global market position in pet hygiene care products remains strong, with exports accounting for over 30% of China's total exports in this category [6] - Employee stock ownership and insider buying demonstrate confidence in the company's future growth [6] Financial Data and Forecasts - Revenue is projected to grow from 1,337 million RMB in 2023 to 2,566 million RMB in 2026, with a CAGR of 19.6% [2][8] - Net profit attributable to shareholders is expected to increase from 103 million RMB in 2023 to 303 million RMB in 2026, with a CAGR of 19.6% [2][8] - Gross margin is forecasted to improve from 17.0% in 2023 to 21.5% in 2026, reflecting better cost management and operational efficiency [2][8] - ROE is expected to rise from 5.8% in 2023 to 14.0% in 2026, indicating stronger profitability and capital efficiency [2][8] Market Data - The company's stock price closed at 20.56 RMB on January 16, 2025, with a P/E ratio of 18 for 2024E [3] - The dividend yield is 4.38%, based on the most recent annual dividend [3] - The company's market capitalization is 2,186 million RMB, with a P/B ratio of 2.1 [3] Industry Outlook - The global pet industry is experiencing robust growth, with the pet hygiene care segment in a penetration growth phase [6] - The company benefits from its strong production, R&D, and supply chain capabilities, as well as its partnerships with major global clients such as PetSmart, Amazon, and Walmart [6]
依依股份：2024年业绩预告点评：新老客户发力拉动收入高增，盈利持续改善，业绩表现超预期