Petpal Tech.(SZ:300673) EBSCN·2024-04-28 09:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [5]. Core Insights - The company's overseas export business is showing continuous improvement, and the staple food segment is expected to drive long-term growth [9]. - The company forecasts a recovery in profitability, with projected net profits of 125 million, 171 million, and 209 million yuan for 2024, 2025, and 2026 respectively, corresponding to EPS of 0.49, 0.68, and 0.82 yuan [9][19]. - The report highlights a significant recovery in Q1 2024, with a year-on-year revenue increase of 142.37% and a return to profitability with a net profit of 42 million yuan [19]. Financial Performance Summary - In 2023, the company reported total revenue of 1.41 billion yuan, a decrease of 18.51% year-on-year, and a net loss of 0.11 million yuan [19]. - The gross profit margin for 2023 was 19.33%, with a recovery to 24.36% in Q1 2024, reflecting a year-on-year increase of 10.32 percentage points [1]. - The company’s net profit margin improved significantly in Q1 2024 to 10.85%, up 7.20 percentage points from the previous quarter [1]. Revenue Breakdown - In 2023, the company achieved revenue of 10.62 million yuan from overseas markets, a decline of 27.10%, while domestic revenue increased by 26.95% to 3.50 million yuan [11]. - The revenue from staple food products is expected to grow rapidly as the New Zealand staple food business enters large-scale production in 2024 [11]. Valuation Metrics - The current P/E ratios for 2024, 2025, and 2026 are projected at 27, 20, and 16 respectively, indicating a favorable valuation as the company recovers [9][12].