Petpal Tech.(SZ:300673) Haitong Securities International·2025-11-20 09:58Investment Rating - The report rates the company as "Outperform" with a target price of RMB 20 [4][13]. Core Insights - The company maintains growth in its pet food brand, particularly in the dog snack segment, and is actively expanding its overseas customer base, which is expected to drive new order growth [1][4]. - The company has achieved significant revenue growth during the 2025 Double 11 shopping festival through effective marketing strategies, solidifying its leading position in the dog snack category [4][14]. - The company focuses on developing its own brand in the mid-to-high-end pet food sector, supported by strong production, marketing, and R&D capabilities, which are rare in the industry [4][15]. - Tariff changes have temporarily pressured overseas business, but the company is optimistic about new client expansion opportunities, particularly in Europe [4][16]. Financial Summary - The projected total revenue for 2023 is RMB 1,411 million, with an expected increase to RMB 2,416 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 17.2% [3]. - The net profit attributable to the parent company is expected to recover from a loss of RMB 11 million in 2023 to RMB 241 million by 2027, indicating a strong turnaround [3]. - The earnings per share (EPS) is projected to increase from -0.04 RMB in 2023 to 0.97 RMB in 2027 [3]. Market Position - The company is recognized as a leading player in China's pet snack food sector and has received numerous accolades for its quality and innovation [9]. - The company is actively pursuing high-end market segments, with plans to introduce a New Zealand brand targeting premium pricing in the domestic market by 2026 [4][15].