Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 2.90 [2][5]. Core Insights - The company has reversed its profit decline, achieving a net profit increase of 170.4% year-on-year to RMB 175 million in FY23, with a net profit margin of 10.8% [3][5]. - Revenue for FY23 reached RMB 1.62 billion, reflecting a year-on-year growth of 12.0%, driven by a recovery in the home care segment, which saw a revenue increase of 13.5% [3][6]. - The company is expanding its pet store operations, aiming to increase the number of stores to 80-100 in 2024, with expected revenue of RMB 60 million from this segment [4][5]. Financial Performance - The home care category accounted for 91.1% of total revenue in FY23, with a gross margin improvement to 44.5%, the highest since 2019 [3][6]. - The company has effectively reduced costs, with the ratio of sales and administrative expenses to revenue decreasing from 41.5% in FY22 to 37.9% in FY23 [3][5]. - The operating profit margin significantly improved from 6.0% to 13.5% in FY23, indicating enhanced operational efficiency [3][5]. Future Projections - The forecast for FY24 estimates a net profit of RMB 190 million, representing a 6.0% increase year-on-year, with an adjusted gross margin of 44.9% [5][6]. - The company maintains a high dividend payout ratio of approximately 80%, with a projected dividend yield of 7%-8% [5][6].
净利润提升170%；宠物线下实体门店服务业态开启扩张模式