CHINA PET FOODS(SZ:002891) Huafu Securities·2025-08-06 05:41Investment Rating - The investment rating for the company is "Buy" (maintained) [2][19] Core Insights - The company's performance in H1 2025 met expectations, with total revenue reaching 2.432 billion yuan, a year-on-year increase of 24.32%, and a net profit attributable to shareholders of 203 million yuan, up 42.56% year-on-year [3][4] - The domestic business is experiencing rapid growth, with significant contributions from core brands and product innovation [4][5] - The company has adjusted its profit forecasts upward, expecting revenues of 5.413 billion, 6.467 billion, and 7.667 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 465 million, 573 million, and 703 million yuan [6] Revenue Summary - In H1 2025, the company achieved revenue of 2.432 billion yuan, with snacks (including canned food) generating 1.53 billion yuan (up 6% year-on-year) and pet food revenue at 780 million yuan (up 86% year-on-year) [4] - Domestic revenue was 860 million yuan, reflecting a 39% year-on-year growth, while international revenue was 1.57 billion yuan, up 18% year-on-year [4] Profitability Summary - The company reported a gross margin of 31.4% in H1 2025, an increase of 3.4 percentage points year-on-year, with domestic gross margin at 38% and international gross margin at 28% [5] - The net profit margin for Q2 2025 was 8.4%, reflecting a year-on-year increase of 0.4 percentage points [5] Financial Forecasts - The company expects revenue growth rates of 21.2%, 19.5%, and 18.6% for 2025, 2026, and 2027 respectively, with net profit growth rates of 18.0%, 23.2%, and 22.8% for the same years [6] - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.53 yuan, 1.88 yuan, and 2.31 yuan respectively [7] Valuation Metrics - The current stock price corresponds to price-to-earnings (P/E) ratios of 38x, 31x, and 25x for 2025, 2026, and 2027 respectively [6][7]