CHINA PET FOODS(002891) 群益证券·2025-04-24 05:03Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 60 CNY per share [1][8]. Core Insights - The company achieved a revenue of 4.47 billion CNY in 2024, representing a year-on-year growth of 19%, and a net profit of 390 million CNY, up 69% year-on-year. In Q4 2024, revenue reached 1.28 billion CNY, a 23.3% increase year-on-year, with a net profit of 110 million CNY, up 98% year-on-year [9]. - For Q1 2025, the company reported revenue of 1.1 billion CNY, a 25.4% increase year-on-year, and a net profit close to 100 million CNY, up 62% year-on-year [9]. - The company has optimized its proprietary brand, entering a profitable phase domestically, with significant growth in its main product categories, particularly pet food [10]. - The gross margin improved by 1.9 percentage points to 28.2% in 2024, with Q4 gross margin reaching 29.7%, benefiting from refined operations and normalization of production [10]. - The company expects to maintain strong growth in domestic business, driven by its brands and expansion into international markets, with projected net profits of 480 million CNY, 600 million CNY, and 720 million CNY for 2025, 2026, and 2027 respectively [10][12]. Summary by Sections Company Overview - The company operates in the agriculture, forestry, animal husbandry, and fishery industry, with a current A-share price of 48.58 CNY as of April 23, 2025 [2]. Financial Performance - The company reported a total revenue of 4.47 billion CNY in 2024, with a net profit of 390 million CNY, and is projected to achieve revenues of 5.62 billion CNY in 2025 [15]. - The earnings per share (EPS) for 2025 is projected to be 1.62 CNY, with a price-to-earnings (P/E) ratio of 30 [12]. Shareholder Information - Major shareholders include Yantai Zhongxing Biological Technology Co., Ltd., holding 24.80% of shares [2]. - Institutional investors hold 6.1% of the circulating A-shares, while general corporations hold 62.6% [4]. Product Composition - The company's product mix includes pet snacks (55.3%), pet canned food (14.8%), pet staple food (24.8%), and pet supplies (5.1%) [3]. Market Trends - The company has seen significant growth in its main product categories, particularly in pet staple food, which grew by 91.9% year-on-year in 2024 [10]. - The domestic market has shown a revenue increase of 30.3% year-on-year, attributed to enhanced brand strength and scale [10]. Future Projections - The company anticipates continued growth in revenue and net profit, with expected increases of 21.7%, 24.4%, and 21.3% for the years 2025, 2026, and 2027 respectively [12].