Petpal Tech.(SZ:300673) EBSCN·2024-06-17 00:31Investment Rating - The report maintains a "Buy" rating for the company [13]. Core Views - The company is expected to benefit from the commercial production of its New Zealand staple food, which is projected to contribute nearly 100 million yuan in revenue in 2024, with a capacity utilization rate of 20-30% by 2025 [1][2]. - The company's overseas export business is improving, and the staple food layout supports long-term development [2]. - The report forecasts net profits for 2024, 2025, and 2026 to be 125 million, 171 million, and 209 million yuan respectively, with corresponding EPS of 0.50, 0.69, and 0.84 yuan [2][3]. Summary by Sections Revenue and Profitability - The company's revenue for 2022 was 1,732 million yuan, with a growth rate of 36.27%. The projected revenue for 2024 is 2,338 million yuan, reflecting a growth rate of 24.09% [3][6]. - The net profit for 2022 was 127 million yuan, with a significant increase of 111.81% compared to the previous year. The net profit is expected to grow to 171 million yuan in 2025 and 209 million yuan in 2026 [3][6]. Earnings Per Share (EPS) and Valuation - The EPS for 2024 is projected at 0.50 yuan, increasing to 0.69 yuan in 2025 and 0.84 yuan in 2026. The current P/E ratios are 27, 20, and 16 for the respective years [2][3]. - The target price for the stock is set at 13.75 yuan [4]. Production Capacity and Cost Structure - The New Zealand factory is expected to reach a production capacity of 40,000 tons, which will help cover operational costs and reduce depreciation impacts on overall profits [11]. - The company has no major capital expenditure plans, indicating a focus on optimizing existing production lines [11]. Brand Development and Market Expansion - The company is actively expanding its overseas ODM business and domestic brands, with the "Jueyan" brand showing strong sales performance, achieving monthly sales exceeding 10 million yuan [10]. - New product launches, including dry food products from the New Zealand factory, are anticipated to drive additional revenue [10].