Petpal Tech.(SZ:300673) ZHONGTAI SECURITIES·2024-04-28 02:30Investment Rating - The report maintains a "Buy" rating for Petty Co., with an expected relative increase of over 15% in the next 6-12 months compared to the benchmark index [8][22]. Core Insights - Petty Co. reported a revenue of 1.411 billion yuan in 2023, a year-on-year decrease of 18.5%, and a net profit of -0.11 billion yuan, down 108.7% year-on-year. However, in Q1 2024, revenue rebounded to 384 million yuan, a year-on-year increase of 142.4%, with a net profit of 42 million yuan, marking a turnaround [7]. - The company's overseas business showed gradual improvement in 2023, with self-owned brands experiencing rapid growth. Domestic revenue increased by 26.95% year-on-year, while overseas revenue decreased by 27.10% [7]. - The overall gross margin for Q1 2024 was 24.4%, reflecting a recovery in gross profit levels due to increased capacity utilization as export orders resumed [7]. - The investment outlook for 2024 is positive, with expectations of full recovery in ODM exports and the commercial production of the New Zealand factory, which will enhance business growth and reduce customer concentration risk [7]. Summary by Sections Financial Performance - 2023 revenue: 1,411 million yuan, down 18.5% year-on-year - 2024 Q1 revenue: 384 million yuan, up 142.4% year-on-year - 2024-2026 revenue projections: 2,043 million yuan (2024), 2,435 million yuan (2025), 2,870 million yuan (2026) [10]. Profitability Metrics - 2023 net profit: -11 million yuan, down 109% year-on-year - 2024 net profit projections: 153 million yuan (2024), 197 million yuan (2025), 233 million yuan (2026) [10]. - EPS projections: 0.61 yuan (2024), 0.78 yuan (2025), 0.92 yuan (2026) [10]. Market Position - The company has successfully implemented a product strategy with notable performance in its dog snack products, establishing a strong presence in the domestic market [7]. - The brand positioning for "Good Pet" has been clarified, with expectations for continued growth as new product categories are introduced [7].