Investment Rating - The report maintains a "Buy" rating for Petty Co., Ltd. (佩蒂股份) [7] Core Views - The company's overseas business is impacted by tariffs, while its domestic self-owned brands are steadily growing [7] - The company has adjusted its revenue and profit forecasts due to the cautious order placement from overseas clients and increased costs associated with its New Zealand factory [7] Financial Data and Earnings Forecast - Total revenue for 2025 is projected at 1,490 million yuan, a decrease of 10.2% year-on-year, with a net profit of 150 million yuan, down 17.5% year-on-year [6] - The gross profit margin is expected to be 29.5% in 2025, with a return on equity (ROE) of 7.7% [6] - The company anticipates revenues of 1,705 million yuan in 2026 and 1,955 million yuan in 2027, with corresponding net profits of 176 million yuan and 205 million yuan [6] Business Performance - In Q3 2025, the company reported total revenue of 1.089 billion yuan, down 17.7% year-on-year, and a net profit of 114 million yuan, down 26.6% year-on-year [7] - The gross margin for Q3 2025 was 32.1%, an increase of 4.1 percentage points year-on-year [7] - The company is focusing on expanding its self-owned brand offerings, particularly in staple food categories, which has led to an increase in domestic business gross margins [7] Market Comparison - As of October 30, 2025, Petty Co., Ltd. has a price-to-earnings (PE) ratio of 28 for 2025E, compared to 38 for its comparable company, Zhongchong Co., Ltd. [8] - The average PE for comparable companies is 39 for 2025E, indicating that Petty Co., Ltd. is trading at a lower valuation compared to its peers [8]

Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company's revenue for H1 2025 was 728 million yuan, a year-on-year decrease of 13.9%, with a net profit of 79 million yuan, down 19% year-on-year. However, the gross margin improved to 32%, up 5.6 percentage points year-on-year [7]. - The company is increasing its focus on staple food products under its own brand, which has led to an improvement in domestic gross margins. The brand strategy for "Jueyan" has shifted from "high-end dog snacks" to a comprehensive solution including staple foods and supplies [7]. - The company's overseas business has faced short-term disruptions due to increased tariffs, particularly affecting exports to the U.S. However, the gross and net margins for Q2 2025 showed year-on-year growth due to a higher proportion of domestic staple food sales and improved operational efficiency in Southeast Asia [7]. Financial Data and Profit Forecast - The total revenue forecast for 2025 is 1,818 million yuan, with a year-on-year growth rate of 9.6%. The net profit is expected to be 174 million yuan, a decrease of 4.3% year-on-year [6]. - The company anticipates revenue growth of 10%, 11%, and 12% for the years 2025, 2026, and 2027, respectively, with net profits projected to be 1.7 billion, 1.8 billion, and 2.2 billion yuan [7].