Petpal Tech.(SZ:300673) CAITONG SECURITIES·2025-10-28 12:51Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company experienced a decline in revenue and net profit in the first three quarters of 2025, with revenue down by 17.68% and net profit down by 26.62% year-on-year. The third quarter alone saw a revenue drop of 24.29% and a net profit drop of 39.35% year-on-year [7] - Despite challenges in overseas business due to trade conflicts, the domestic main brand continues to grow rapidly, with online GMV for the brand increasing by 29% in the third quarter [7] - The company's gross margin improved to 32.1% in the first three quarters, up by 4.1 percentage points year-on-year, while the net margin was 10.5%, down by 1.3 percentage points year-on-year [7] - The company is expected to maintain rapid growth in domestic sales, with projected net profits of 164 million, 219 million, and 267 million yuan for 2025, 2026, and 2027 respectively, corresponding to PE ratios of 25.9, 19.4, and 15.9 [7] Financial Performance Summary - Revenue for 2023 is projected at 1,411 million yuan, with a growth rate of -18.5%. For 2024, revenue is expected to increase to 1,659 million yuan, a growth rate of 17.6%, and for 2025, it is projected at 1,707 million yuan, a growth rate of 2.9% [5][8] - The net profit for 2023 is expected to be -11 million yuan, with a significant recovery to 182 million yuan in 2024, followed by 164 million yuan in 2025 [5][8] - The company's EPS is projected to be -0.04 yuan for 2023, improving to 0.75 yuan in 2024 and 0.66 yuan in 2025 [5][8] - The company's ROE is expected to recover from -0.6% in 2023 to 9.3% in 2024 and further to 7.9% in 2025 [5][8]