Investment Rating - The report maintains a "Buy" rating for the company, citing strong performance and growth potential [2][3] Core Views - The company's 2023 performance met expectations, with significant growth in net profit in 2024Q1 [2] - The pet food market has substantial growth potential, driven by increasing pet ownership and higher penetration of professional pet food in China [2] - The company's proprietary brand has shown strong performance, enhancing its core competitiveness [2] - Product structure optimization has led to improved profitability, with gross and net margins increasing in 2024Q1 [2][3] Financial Performance - In 2023, the company reported total revenue of RMB 4.327 billion, up 27.36% YoY, and net profit attributable to shareholders of RMB 429 million, up 60.68% YoY [2] - In 2024Q1, revenue reached RMB 1.097 billion, up 21.33% YoY, with net profit attributable to shareholders of RMB 148 million, up 74.49% YoY [2] - The company's gross margin in 2023 was 36.84%, up 4.25 percentage points YoY, and the net margin was 9.95%, up 2.13 percentage points YoY [2] - In 2024Q1, the gross margin further improved to 41.14%, up 6.94 percentage points YoY, and the net margin reached 13.56%, up 4.08 percentage points YoY [2][3] Market and Industry Analysis - The pet food market in China is expected to grow, with pet dog and cat populations increasing by 1.1% and 6.8% respectively in 2023 [2] - The penetration rate of finished pet food in China is still low compared to mature markets like the US and Japan, indicating significant growth potential [2] - The top 3 companies in China's pet food market accounted for 16.6% of the market share in 2022, with further consolidation expected [2] Product and Brand Performance - In 2023, the company's proprietary brand revenue reached RMB 2.745 billion, up 34.15% YoY [2] - The company's domestic revenue grew by 39.38% YoY in 2023, driven by increasing pet ownership and higher penetration of professional pet food [2] - The company's product structure has been optimized, with higher-margin products contributing to improved profitability [2][3] Financial Projections - The company is expected to achieve net profit attributable to shareholders of RMB 553 million, RMB 713 million, and RMB 870 million in 2024, 2025, and 2026 respectively [3] - EPS is projected to be RMB 1.38, RMB 1.78, and RMB 2.18 for 2024, 2025, and 2026 respectively [3] - The current PE ratio is 37.32x for 2024, 28.94x for 2025, and 23.72x for 2026, indicating reasonable valuation [3] Valuation and Peer Comparison - The company's valuation is in line with industry peers, with a PE ratio of 37.32x for 2024, compared to 22.20x for Zhongchong and 24.73x for Peidi [6] - The company's EPS growth is expected to outpace peers, with a projected EPS of RMB 1.38 in 2024, compared to RMB 0.98 for Zhongchong and RMB 0.55 for Peidi [6]
乖宝宠物：2023年年报及2024年一季报点评：业绩快速增长，品牌力持续提升