Petpal Tech.(SZ:300673) ZHESHANG SECURITIES·2025-04-29 10:49Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company achieved a revenue of 1.659 billion yuan in 2024, representing a year-on-year growth of 17.6%, and a net profit of 182 million yuan, marking a return to profitability [1] - The gross margin improved to 29.4% in 2024, an increase of over 10 percentage points year-on-year, driven by product mix optimization and enhanced capacity utilization in overseas bases [1] - The company plans to focus on its proprietary brands and create blockbuster products to drive growth in 2025 [3] Financial Performance - In 2024, revenue from various segments included: 505 million yuan from pet skin chews (+19.1%), 608 million yuan from plant-based chews (+43.7%), 403 million yuan from nutritious meat snacks (+26.6%), and 118 million yuan from staple and wet food (-43.6%) [1] - Quarterly performance showed a revenue of 336 million yuan in Q4 2024 (down 32.1% year-on-year) and 329 million yuan in Q1 2025 (down 14.4% year-on-year), with net profits of 27 million yuan and 22 million yuan respectively [1] Revenue and Profit Forecast - Projected revenues for 2025-2027 are 1.914 billion yuan, 2.163 billion yuan, and 2.387 billion yuan, with year-on-year growth rates of 15.34%, 13.04%, and 10.37% respectively [4] - Expected net profits for the same period are 199 million yuan, 221 million yuan, and 251 million yuan, with growth rates of 9.16%, 11.15%, and 13.53% respectively [4] Market Position and Strategy - The company reported domestic sales of 288 million yuan in 2024, primarily driven by proprietary brands, which saw a 33% increase in revenue, with the Jueyan brand growing by 52% [3] - The overseas capacity utilization remains high, with factories in Vietnam operating at full capacity and significant improvements in profitability from the Cambodia factory [2][9]