CHINA PET FOODS(002891) 国海证券·2024-04-23 13:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant year-on-year growth in 2023 and Q1 2024, with revenue projections adjusted to 4.351 billion, 5.109 billion, and 6.104 billion yuan for 2024-2026, and net profit forecasts of 302 million, 413 million, and 496 million yuan for the same period, corresponding to P/E ratios of 26, 19, and 16 times [3][15][20] - The competitive landscape in the domestic market is favorable for leading companies with stable supply chains, continuous R&D capabilities, and high product quality, with the pet sector expected to maintain high growth rates in profitability in 2024 [3][15] Financial Performance Summary - The company reported total revenue of 3.747 billion yuan in 2023, a year-on-year increase of 15.37%, and a net profit of 233 million yuan, up 120.12% [28] - For Q1 2024, the company achieved revenue of 878 million yuan, reflecting a growth of 24.42%, and a net profit of approximately 56.22 million yuan, which is a 259% increase year-on-year [28] - The company's overseas revenue accounted for 71.03% of total revenue in 2023, with significant contributions from its U.S. factory [15] Profitability and Growth Metrics - The gross profit margins for various product categories have improved, with pet staple food at 29.06%, pet snacks at 25.39%, and pet canned food at 32.62%, all showing increases compared to 2022 [18] - The company has plans for expansion, including a second factory in the U.S. to enhance its competitive edge and overall profitability [15]