Petpal Tech.(SZ:300673) EBSCN·2025-09-02 10:52Investment Rating - The report maintains a rating of "Accumulate" for the company [7]. Core Views - The company has seen a significant improvement in gross margin due to enhanced focus on staple food products, despite a decline in overall revenue [2][3]. - The company is expanding its product lineup in staple foods, which is expected to become a key growth driver in the future [3][4]. - The net profit margin has improved in Q2 2025, indicating better profitability [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 728 million yuan, a year-on-year decrease of 13.94%, and a net profit of 79 million yuan, down 19.23% [2]. - Q2 2025 saw revenue of 399 million yuan, a decline of 13.56% year-on-year, but net profit increased by 1.15% to 57 million yuan [2]. Product and Market Analysis - Domestic self-owned brand performance is stable, with the "Jueyan" brand showing rapid growth [3]. - The company is increasing its focus on staple food products, launching a series of new offerings such as air-dried, baked, and freeze-dried foods [3]. Margin and Cost Analysis - The gross margin for H1 2025 was 31.98%, improving to 34.76% in Q2 2025, with a year-on-year increase of 6.75 percentage points [4]. - The net profit margin for Q2 2025 was 14.27%, reflecting a year-on-year increase of 2.08 percentage points [4]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted to 187 million, 221 million, and 249 million yuan respectively, with corresponding EPS of 0.75, 0.89, and 1.00 yuan [5][6]. - The current stock price corresponds to a P/E ratio of 24 for 2025, 21 for 2026, and 18 for 2027 [5].