CHINA PET FOODS(SZ:002891) Zhongyuan Securities·2025-10-21 10:27Investment Rating - The report maintains an "Accumulate" investment rating for the company [7] Core Views - The company's performance meets expectations, with a revenue of 3.86 billion yuan for the first three quarters of 2025, a year-on-year increase of 21.05%. The net profit attributable to shareholders reached 333 million yuan, up 18.21% year-on-year [6] - The company is accelerating its overseas capacity layout, establishing a global supply chain system with over 22 modern production bases worldwide, including in North America, which is its largest sales market [6] - The company continues to strengthen its own brand, "WANPY," achieving significant brand recognition and product innovation, with a focus on high-quality pet food products [6] - The company's profitability remains stable, with a gross margin of 30.54%, an increase of 2.99 percentage points year-on-year [6] Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 1.43 billion yuan, a year-on-year increase of 15.86%, while the net profit attributable to shareholders was 130 million yuan, a decrease of 6.64% [6] - The operating cash flow for the first three quarters was 234 million yuan, reflecting an 18.24% year-on-year growth [6] Market Position and Strategy - The company has built a collaborative production system across the U.S., Canada, and Mexico, enhancing its market responsiveness and production scale in North America [6] - The second production line in the Canadian factory was completed in 2025, with the Mexican factory also finishing construction, and a second U.S. factory expected to be completed in 2026 [6] Brand Development - "WANPY" has significantly improved its brand power through coordinated efforts in branding, product development, and channel expansion, achieving notable market performance [6] - The product line has been expanded to include various categories, with the "WANPY" brand receiving multiple industry awards for its quality [6] Profitability Metrics - The company reported a net profit margin of 9.32%, a slight decrease of 0.16 percentage points year-on-year, while the sales and management expense ratios increased [6] - As of Q3 2025, the company's debt-to-asset ratio was 42.05%, an increase of 3.07 percentage points year-on-year [6] Future Earnings Projections - The report raises the company's projected net profits for 2025, 2026, and 2027 to 458 million, 632 million, and 765 million yuan respectively, with corresponding EPS of 1.51, 2.08, and 2.51 yuan [7][8]