CHINA PET FOODS(SZ:002891) Guohai Securities·2025-10-16 01:53Group 1: Company Overview - The company, Zhongchong Co., Ltd., reported a revenue of 3.86 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 21.05% [3] - The net profit attributable to shareholders for the same period was 333 million yuan, up 18.21% year-on-year [3] - In Q3 2025, the company achieved a revenue of 1.428 billion yuan, reflecting a year-on-year growth of 15.86%, while the net profit decreased by 6.64% to 130 million yuan [4] Group 2: Business Development - The company maintains a robust business model with a clear brand development path, focusing on high-quality products and a stable supply chain [4] - Zhongchong has established production bases not only in China but also in the USA, Canada, Mexico, New Zealand, and Cambodia, enhancing its operational capabilities in North America [4] - The completion of the second production line in Canada and the construction of a factory in Mexico are expected to significantly improve the company's production capacity and market responsiveness in North America [4] Group 3: Brand Strategy - The core self-owned brand WANPY has seen significant market performance, achieving top rankings in various categories on platforms like Douyin [5] - The brand's marketing strategy includes collaborations with popular figures and live-streaming events to enhance visibility among younger consumers [5] Group 4: Financial Forecast - The company is projected to achieve revenues of 5.49 billion, 6.769 billion, and 8.331 billion yuan for 2025, 2026, and 2027 respectively, with net profits expected to be 455 million, 567 million, and 710 million yuan [5] - The corresponding price-to-earnings ratios are forecasted to be 36, 29, and 23 times for the respective years, indicating a favorable outlook for leading companies with stable supply chains and high product quality in the pet industry [5]