CHINA PET FOODS(SZ:002891) ZHONGTAI SECURITIES·2024-04-26 07:00Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company reported a revenue of 3.747 billion yuan in 2023, representing a year-on-year increase of 15.4%, and a net profit attributable to shareholders of 233 million yuan, which is a significant increase of 120% year-on-year [6][22]. - In Q4 2023, the company achieved a revenue of 1.035 billion yuan, up 28.4% year-on-year, and a net profit of 56.43 million yuan, marking a return to profitability [6][22]. - For Q1 2024, the revenue was 878 million yuan, reflecting a year-on-year growth of 24.4%, while the net profit was 56.22 million yuan, up 259% year-on-year [6][22]. - The company plans to distribute a dividend of 2.4 yuan per 10 shares (tax included) [6]. Financial Performance Summary - Revenue projections for 2024-2026 are 4.333 billion yuan, 4.977 billion yuan, and 5.664 billion yuan, respectively [22]. - Net profit forecasts for the same period are 287 million yuan, 348 million yuan, and 419 million yuan, respectively [22]. - Earnings per share (EPS) are expected to be 0.97 yuan, 1.18 yuan, and 1.43 yuan for 2024-2026 [22]. - The price-to-earnings (P/E) ratios for 2024-2026 are projected to be 25.6, 21.1, and 17.5, respectively [22]. Business Development Insights - The company has seen strong recovery in overseas markets, with overseas revenue reaching 2.66 billion yuan in 2023, a year-on-year increase of 13.4% [22]. - Domestic sales reached 1.08 billion yuan, up 20.4% year-on-year, contributing to 29% of total revenue [22]. - The company is focusing on optimizing its product offerings, with significant growth in staple food products, which saw a revenue increase of 60.23% year-on-year [22]. - The overall gross margin for Q1 2024 was 27.85%, continuing a trend of growth over nine consecutive quarters [22].