Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5]. Core Views - The company is expected to achieve a significant increase in net profit, with forecasts for 2024 indicating a growth of 92-118% year-on-year, reaching a net profit of 2.0-2.3 billion [1]. - The growth is attributed to strong order growth from existing customers, contributions from new customers, stable raw material prices, and improved production capacity utilization [1][2]. - The company anticipates continued high growth in the North American market, with the European market following and stable growth in Japan and South Korea [1]. Summary by Sections Performance Forecast - The company expects a net profit of 0.5-0.8 billion for Q4 2024, representing a year-on-year increase of 200-369% [1]. - For 2024, the expected net profit is 2.0-2.3 billion, with a non-GAAP net profit of 1.8-2.0 billion, reflecting a growth of 60-85% [1]. Product Performance - In the first three quarters of 2024, the main product categories showed strong growth: pet pads increased by 35.6%, pet diapers by 24%, and non-woven fabrics by 35.74% [2]. - The company is actively expanding its customer base in pet products, which is expected to enhance profitability in the non-woven fabric segment as market supply and demand balance [2]. Market Strategy - The company is well-positioned to handle tariff risks, as its pet hygiene products are considered essential in the U.S. market, leading to strong consumer loyalty [3]. - The company has established stable relationships with overseas clients due to its cost and scale advantages over local U.S. manufacturers [3]. - The company has conducted overseas research and is prepared to build production capacity abroad if tariffs on exports to the U.S. increase significantly [3]. R&D and Product Development - The company focuses on enhancing the living environment for pets and their owners through continuous product improvement based on market research and consumer feedback [4]. - It has developed over a thousand specialized pet hygiene products with various features, establishing a comprehensive application system for pet hygiene products [4]. Financial Data - The company’s projected net profits for 2024-2026 are 2.3 billion, 2.7 billion, and 3.3 billion respectively, with corresponding EPS of 1.22, 1.47, and 1.81 [5][10]. - The total market capitalization is approximately 3.91 billion, with a circulating market value of about 2.25 billion [6].
依依股份：业绩超预期，25年展望乐观